Tribhuvan International Airport to have fully automated Air Traffic Control System

KATHMANDU: Tribhuvan International Airport, within a month, will have a fully automated Air Traffic Control (ATC) system of European standard which will minimise 50 per cent of the load at the ATC tower.

“The equipment required for a fully automated ATC tower has been set up and within a month the equipment will be installed and ready for operations,” said deputy director at TIA aviation office Bharat Sharma.

According to him, once the ATC is fully automated the total work load at the ATC tower will be minimised by 50 to 60 per cent, which will enhance communication between the ATC and pilots. “Once the ATC is fully automated, there will be effective coordination and support in controlling the increasing number of flights,” said Sharma.

The fully automated Air Traffic Control system of European standard is part of the TIA enhancement project that is funded by the Asian Development Bank. Air Traffic Controllers at TIA are currently using a semi-automated ATC system, due to which they face difficulties during Very High Frequency (VHF) communication.

According to Sharma, due to lack of modern technology, there is disturbance during VHF communication with pilots and controllers do not get sufficient time for two-way communication. At present, there are more than 400 departures and arrivals each day from the country’s only international airport, due to which TIA is facing both air traffic and VHF congestion.

Along with the new equipment, TIA will also receive a new Monopulse Secondary Surveillance Radar on grant from the Japanese government. The new radar will be installed by 2015, and it will cover the entire sky of the country. At present, the TIA tower has a capacity to monitor a distance of only 50 miles. The TIA radar was upgraded 15 years back, which was also a grant from Japan.

It is anticipated that with these transformations, safety will be enhanced and TIA will

be more capable of conducting safe flight operations and facilitating flexible use of operational hours by domestic and international flights.

Source: The Himalayan Times, 23/11/2013
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Possibility of Manufacturing Mobile Phones in Nepal

SANTA CLARA (California)

Experts have said that mobile phones can be manufactured in Nepal itself by using skilled yet cheaper technical manpower available in the country.

“The market of mobile set in Nepal is growing. We can produce mobile sets in our own homeland,” Pramod Paudel, a Nepali engineer working with Intel Corporation, said. Speaking at a program organized jointly by Computer Association of Nepal (CAN) USA and American Society of Nepali Engineers, Paudel smartphones can be produced in Nepal at the cost of US$ 25-45 per set.

“Around five thousand IT engineers are graduating from different colleges in Nepal every year. Smartphones can be manufactured in Nepal itself by utilizing their skills expertise,” added Poudel. He, however, added that the government should create environment conducive for firms interested to manufacture smartphones.
Nepalis are paying a minimum of Rs 7,000 for smartphones.

Other speakers at the program said there is a huge prospect for app developers in Nepal.
According to conservative estimate, Nokia enjoys 48 percent share in Nepal´s mobile phone market followed by Samsung, Apple and HTC with market shares of 25, 10 and 5 percent, respectively. Sony, LG, Blackberry and Chinese sets are also available in Nepal.

Source: Republica, 30th June 2013
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Five Star Hotel Nans Opening in Belhiya, Nepal

KATHMANDU, NEPAL

Construction of five-star hotel Nans that is being built in the Indo-Nepal border area of Belhiya targeting tourists visiting the birthplace of Lord Buddha Lumbini is nearing completion.

Promoter Chandra Prasad Shrestha said that the hotel that is targeting foreigners entering from Sunauli will come into operation from November. There are currently no five-star hotels outside Kathmandu Valley apart from Pokhara. Soaltee, Hyatt Regency, Yak and Yeti, Annapurna, Everest, Radisson, Malla and Shangrila hotels in Kathmandu, and Fulbari Resort and Grand Hotel in Pokhara are the only five-star hotels in Nepal. Shrestha said he is opening the five-star hotel as tourists seek five-star facilities though there are three-star hotels in and around Bhairahawa. He has been operating a three-star hotel in Bhairahawa in the same name for the past three years.

“I have mustered courage to open a five-star hotel as the tourists coming to my hotel demand five-star facilities, and over three-dozen Indian travel agencies dealing with me have also encouraged me to start a standard hotel,” he added. He revealed the total investment in the hotel is expected to reach Rs 350 million, apart from 55 katthas of land it occupies, though he had planned to complete it with Rs 320 million.

Shrestha, who is also a realtor, said he has managed to keep the cost of construction low as he had procured the land earlier, there were fewer obstructions in construction as it is in the border area, and the construction materials were also cheap. The hotel, that will have 76 rooms in the first stage, will have a casino, restaurants and swimming pool that a five-star hotel is expected to have.

Local entrepreneurs have been complaining that arranging accommodations for high-profile guests is tough in Lumbini region in lack of quality hotels. Local media person Chetan Pant said that bad message was sent to the rest of the world last year when former prime minister of Thailand and billionaire businessman Thaksin Shinawatra had to stay in a three-star hotel during his Lumbini visit. “There will no longer be shortage of standard hotels to keep high-profile guests after Nans Hotel is completed,” he stated.

Shrestha sees potential for other five-star hotels in Lumbini region. “The local hotels have not been able to withstand the pressure of tourists during the peak season even now. Another three-four five-star hotels can survive in Bhairahawa and Lumbini region,” he added. He revealed that entrepreneurs from Kathmandu and Pokhara have even bought land in the region for hotels and claimed that additional competition in the hotel sector will further boost business.

He said the main building of the hotel will be two-story. There will be 14 VIP suites out of the 76 rooms and the remaining will be deluxe rooms. It will have two restaurants, tennis court, swimming pool and all the facilities that modern hotels provide. The hotel, which plans to provide employment to locals, will itself conduct training programs to train the required work force and even send them abroad for training. The hotel was initially set to be named Deep Prakash International but will now be operated as Nans after the partners parted ways. 

Source: Karobar Daily, 26th June 2013
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Bank of Asia and NIC Bank Merge in Nepal's first Commercial Bank Merger

KATHMANDU, NEPAL

NIC Bank and the Bank of Asia Nepal (BoAN) have combined to become NIC Asia Bank in the first ever case of a merge r between commercial banks. Nepal Rastra Bank (NRB) governor Yubaraj Khatiwada inaugurated the new entity and gave it his blessings amid a programme held on Sunday.

The two banks, promoted by largely the same group, had signed a memorandum of understanding (MoU) to come together on June 28, 2012. The central bank gave its go-ahead on April 26, 2013. NIC Asia Bank is now headquartered at the Trade Tower at Thapathali.

The merge d bank has joined the league of the top five commercial banks in the country in terms of the size of its balance sheet which is Rs 50 billion. Its total capital base including paid-up capital and reserves come to Rs 5 billion.

Addressing the inaugural ceremony, governor Khatiwada said that the bank now had a challenge to prove that the merge r has been a success. “This merge r has added responsibility to the management of NIC Asia,” Khatiwada said. “The management should be able to set an example by efficiently operating the new entity.”He added that NRB would improve the merge r directives to make it easier for financial institutions to merge . The governor also praised the bank for its success in managing issues related to employees, ownership structure and data transfer and software.

Chief executive officer of NIC Asia Bank Sashin Joshi said that the merge r had added strength to the bank, and this initiative would help to achieve newer heights at a time when the country’s economy isn’t doing so well. He expressed satisfaction that a merge r as big as the one that took place between NIC and the Bank of Asia has been possible through the use of local manpower. “Despite the merge r, there has been no layoffs and the employees from both the banks will be treated equally,” said Joshi.

Following the merge r, BoAN shareholders will be issued new share certificates on the basis of two BoAN shares for one NIC share, according to the bank. Meanwhile, a nine-member board of directors, headed by chairman Jagadish Prasad Agrawal, has also been formed at the merge d entity.

NIC Asia Bank now has 53 branches and a customer base of 270,000. NIC Bank had 36 branches and BoAN had 29. Among them, 13 branches were adjusted and a new corporate entity was added. As for ATM outlets, NIC Asia Bank now has a countrywide network of 57 ATMs. The number of shareholders stands at 90,000. NIC Asia Bank has a total of 630 employees. 

The bank’s consolidated operating profit for the first 11 months of the current year to mid-June 2013 stands at Rs 1.43 billion while the net profit stands at Rs 520.96 million. The combined deposit base is Rs 38 billion while loan issue is worth Rs 33 billion.

Banks told to keep ‘reasonable’ spread
Nepal Rastra Bank (NRB) Governor Yubaraj Khatiwada asked bankers on Sunday to keep the spread rate at a reasonable level saying that it was still on the higher side. The spread rate is the difference between the interest rates on deposits and loans.

According to NRB, the spread rate of commercial banks rose to 7.01 percent from 7 percent during the period mid-April to mid-May. The average interest rate on deposits was 5.36 percent while it was 12.37 percent on lending during the review period.

Speaking at the inaugural ceremony of NIC Asia Bank, Khatiwada asked bankers to maintain the spread rate at a level that ensures minimum profits so that industrialists would not suffer. He  asked bankers not to expect concessions from NRB for forever for implementing its directives. “Initially, NRB has been giving certain concessions, and it has been implementing the directive effectively after sometime,” he said.

Source: ekantipur,1st July 2013
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Gold Price in Nepal falls to Rs.50,500 per tola

KATHMANDU, NEPAL

Gold price went down by Rs 2,500 per tola (11.664 grams) on Sunday compared to price recorded on June 11 when bullion dealers last fixed gold and silver prices.
Bullion traders returned to business only on Saturday, ending their 10-day protest. They were on warpath, demanding that the government incorporate their suggestions in the market monitoring guidelines and not initiate action against jewelers who were found cheating consumers during market monitoring conducted by the government.

On Sunday, the yellow metal was traded at Rs 50,5000.
Tej Ratna Shakya, past president of Federation of Nepal Gold and Silver Dealers´ Association said that the drop in gold price is in line with the international price drop.
“Ten days ago, gold price was hovering over US$ 1,344 per troy ounce in the international market. Now, it has gone down to $1,276.19 per troy ounce,” he said, adding, “Had rupee not weakened to this level, gold price would have come down below Rs 50,000 per tola.”

According to Reuters, gold price went down to $1,276.19 per troy ounce on Thursday - the lowest since September 21, 2010. “Gold prices plunged over 5 percent to the lowest, leading a global market rout one day after the US Federal Reserve gave its most explicit signal yet that it plans to wind down the era of easy money,” said Reuters.

According to Nepal Bankers´ Association, commercial banks have around 300 kg of gold in stock as bullion dealers did not purchase the yellow metal for 10 days because of their protest. Banks did not release gold on Sunday as international market is closed on the day.
Meanwhile, two federations of gold, silver and gems dealers are preparing to start issue recommendations for gold purchase from Monday. “We have decided to issue recommendation to wholesalers as per their need as commercial banks have enough gold in stock,” said Ramesh Maharjan, president of Federation of Nepal Gold, Silver, Gems and Jewelry Association.

As per the provision of Nepal Rastra Bank, traders can issue recommendation for the past stocks but cannot issue recommendation for the future needs. “As we can issue recommendation for all the accumulated gold, there should not be any problem in getting gold from banks, said Shakya, projecting that price will drop further down. “International market trend shows, gold price is on the decline.”

As the market opened after a hiatus of 10 days, traders said demand for gold climbed to as high as 40 kg on Sunday.
On Sunday, price of silver also went down by Rs 50 per tola to Rs 825 per tola.

Source: myrepublica, 24th June 2013
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Jewellery Shops in Nepal open for Business

KATHMANDU, NEPAL

Bullion traders, who have closed their shops since the last 10 days, have called off their protest after the government formed a seven-member taskforce to formulate monitoring guidelines.

Bullion traders were on a nationwide strike since last Wednesday to pressure the government to formulate market monitoring guidelines and to protest government action against three jewelery shops.

A meeting held between bullion traders and the government at the Department of Commerce and Supply Management (DoCSM) has agreed on a three-point deal.

"The meeting formed a seven-member taskforce with authority to formulate market monitoring guidelines and address the issues raised by bullion traders. With this, the gold traders have agreed to call off all their protests," said Narayan Prasad Bidari, director general of DoCSM.

The seven-member taskforce formed under the leadership of Nuta Raj Pokharel, under-secretary at the Ministry of Commerce and Supplies, includes representatives from DoCSM, Nepal Bureau of Standards and Metrology, the Ministry of Finance and the Ministry of Law and Justice from the government side, and one representatives each from the Federation of Nepal Gold and Silver Dealers Associations (FNGSDA) and the Federation of Nepal Gold, Silver, Gems and Jewelry Associations (FNGSGJA). Besides, there will also be two technical assistants from each federation.

Mani Ratna Shakya, president of FNGSDA, said that with the agreement, all their protest programs have ended and they will reopen the shops from Saturday. "We will open our shops from tomorrow, start issuing recommendations to banks from Sunday to buy gold and also fix the bullion prices, something that has been stopped since June 11", said Shakya.

A joint team of DoCSM and Nepal Bureau of Standards and Metrology had inspected 12 jewelry shops in the capital over the past two months. Lab tests on jewelry samples collected from the shops showed that the traders were cheating customers in terms of the quality and weight of gold, silver and diamond.

Though the Ministry of Commerce and Supplies has prepared a draft proposal to standardize the price and quality of gold, silver, diamond and items made from these, bullion traders were against this, arguing that it does not address their demands and that it was very impractical.

"Now, as the taskforce will formulate new guidelines, the old draft is automatically cancelled," said Bidari.

Source: Himalayan Times, 22nd June 2013
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Price of Land in Kathmandu continues to fall

KATHMANDU, NEPAL

Industrialist Shashikant Agrawal procured 11 ropanis of land in Naxal from investor Nirmal Pradhan at Rs 2.70 million per anna. Pradhan had put the price of his land at Rs 7 million per anna just a year ago.
Agrawal had also purchased 43 annas of land in Thamel from Sahadev Kakshapatu at Rs 3.70 million per anna a year ago to construct a three-star hotel under the Marriott chain. The price of that land was around Rs 10 million per anna when the price of land was at its peak around five years ago. CE Construction has procured land of Vibor Development bank in Bansbari, that was traded at around Rs 2.50 million an anna until last year, at Rs 1 million per anna. Prakash Thapa of Balkot, Bhaktapur sold five annas of land, that would cost up to Rs 1.40 million around five years ago, at Rs 800,000 per anna last week.

These are just a few examples of the falling price of commercial and residential land in Kathmandu Valley that had risen unnaturally a few years ago. Entrepreneurs claim that price of the big plots of land that were procured for commercial purpose has fallen by up to 50 percent while smaller pieces by around 20 percent. The debtors are trying to repay the loans by selling the land, like Pradhan did, as banks are preparing to auction off the land kept as collateral. The banks help find the customers for expensive plots that cannot be found easily.  Secretary of the Nepal Land and Housing Developers Association Bhojraj Lohani stated that the price of land, that has been on a downward spiral for the past three years, has started to fall still drastically in the past one year. “The price must have fallen by 20-50 percent in the last one year,” he claimed.

There have been dozens of transactions to prove his claims. Realtors, who had procured plots by borrowing from banks, are trying to sell land at a lower price instead of bearing the burden of debt. Even smaller pieces are also sold at a cheaper rate due to the pressure of interest of bank loans. Bijesh Joshi sold two ropanis of land in Dhobhighat at Rs 2.30 million an anna a few months ago. The value of that land was around Rs 4 million per anna until a year ago. Lohani said that the price of land in the Valley had risen unnaturally from 2007 to 2010 and it can no longer be traded at that price.

He revealed that the realtors currently have two type of mindsets with some improvement in transaction since the last year. “Some are preferring to wait and watch while others are selling at a cheaper rate. This is the right time to procure land as the price has started to fall,” he opined. But the buyers feel that the price will drop further. “The price of land had increased unnaturally as it was traded through unorganized and unregistered persons and institutions. The realty sector is in the hands of the actual buyers only now,” President of the Professional Real-Estate Agents Association Dilip Neupane stated.

The Department of Land Reforms and Management data shows that realty transactions started to rise from the fiscal year 062/63. While the government had targeted to raise Rs 4.80 billion in revenues from realty transactions 065/66, Rs 7.49 billion was raised. This is the highest revenues collected from transactions of land till date as the price was at its peak then. “The price of land in the capital will never rise to that level again,” section officer at the department Raju Basnet said.  The number of permissions acquired for land planning, joint residency and collective residences was also the highest then.

The sector has been on a downward spiral since the Nepal Rastra Bank (NRB) brought a provision on December 17, 2010 that stipulated that the loan amount should not exceed 60 percent of the value of the land that is kept as collateral. Vice President of the Nepal Bankers Association Upendra Poudel said the valuation of land by the banks has also dropped with the falling market price. The price of land and the bank valuation both have fallen, according to him, as the realtors are in problem.

Major govt/NRB decisions on realty sector
December 17, 2009: Banks stopped from investing more than 40 percent of the total loans in the sector
August 21, 2010: Those who have taken personal home loans have to repay 30 percent of the loan until mid-July 2011, and another 25 percent until mid-July 2012.
March 18, 2011: Ceiling of Rs 6 million for personal home loans.

Budget for 068/69: Ceiling of personal home loans pushed to Rs 8 million from Rs 6 million. The loans can be renewed only if all the accrued interest is cleared until mid-July 2012.

January 8, 2012: Ceiling of personal home loans pushed to Rs 10 million from Rs 8 million. The banks have to recover all the loans by mid-July, 2013 if more than 25 percent of loans have been invested in the sector.

Source:Karobar Daily, 22nd June 2013
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