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July / August Nepal
Nepalese Business Delegation Visited India
Nepalese business delegation headed by Pradeep Kumar Shrestha, President of Federation of Nepalese Chambers of Commerce & Industry (FNCCI) concluded recently a weak long visit of India. The delegation was accompanying the Prime Minister Girija Prasad Koirala’s goodwill visit to India at the friendly invitation of Prime Minister Atal Behari Vajpayee.
The delegation was working different dedicated groups i.e. FNCCI-CII Joint Economic Council, Tourism and Aviation, Commerce, Finance, Surface Transport, Agriculture and Information Technology and met with senior officials of government of India namely, Finance Secretary Prabir Mankad, Tourism Secretary M.P. Bezbaruah and Commerce Secretary P. Sengupta and held extensive discussions with them on issues of interest to them business community of Nepal.
During the visit meeting of FNCCI-JEC was also held.
The delegation also visited the Nodia Export Processing Zone in India.
In honour of the Prime Minister Koirala a luncheon meeting was hosted by the Confederation of Indian Industry (CII) in New Delhi on 2 August.
In the presence of Prime Minister Koirala, a cooperation agreement was signed between FNCCI and CII.
FNCCI President Mr. Shrestha and CII President Arun Bharat Ram signed the agreement.
After New Delhi the delegation also visited the Hydrabad City of India. In Hyderabad the delegation participated in the luncheon meeting organised by Federation of Indian Chambers of Commerce & Industry (FICCI) and hosted by Andra Pradesh Chamber of Commerce & Industry in honour of Prime Minister Koirala.
In the presence of the Prime Minister Koirala two seperate protocols on information technology and agrobusiness were signed between FNCCI and FICCI. FNCCI President Pradeep Kumar Shrestha and FICCI past president A.S. Kasliwal signed the agreement.
During the visit different meetings with the representative of Indian business were held.
Cooperation Agreement signed between FNCCI & CII
In the presence of Prime Minister Girija Prasad Koirala, a cooperation agreement has been signed in New Delhi on 2nd August between Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Indian Industry (CII).
FNCCI and CII wishing to further foster development and diversify their commercial and economic relations have agreed to continue to intensify their efforts to further promote Indian investment and joint ventures in Nepal, the agreement states.
According to the agreement CII and FNCCI have agreed to help ensure proper implementation of the Treaty of Trade signed between the two countries.
The apex bodies of the two countries also agreed to work together in the areas of corporate governance, HIV/AIDS awareness programme and share learning’s and experiences, information’s technology and other service, trade fairs both in Nepal as well as in India and exchange business delegations, human resource development, productivity and quality and environment.
FNCCI and CII had identified specific areas of cooperation covering trade, investment, hydropower, tourism, quality and agro enterprise and to implement the joint task force recommendations. FNCCI and CII have formed the Joint Economic Council.
FNCCI and CII had signed a memorandum of understanding in February, 1995 in New Delhi and formed a joint task force to present a report to the Prime Minister of Nepal and India.
Protocol on Agri Business & Information Technology signed between FNCCI & FICCI
In the presence of Prime Minister Girija Prasad Koirala, two separate protocols on Indo-Nepal Agri Business and Information Technology were signed between Federation of Nepalese Chambers of Commerce & Industry (FNCCI) and Federation of Indian Chambers of Commerce & Industry (FICCI) at Hyderabad, India on 4th August 2000. FNCCI President Pradeep Kumar Shrestha and FICCI Past President A.S. Kasliwal. signed the protocols.
As per the protocol on Agri Business the FNCCI & FICCI have agreed to work together towards commercially processing and marketing agricultural products in the SAARC countries using the infrastctural facilities of Nepal and technology support from India.
The protocol envisiges the formation of a Bifateral Working Group which would be amplified by Task Forces one for each of the prime identified areas: i.e. Agricultural inputs, Agricultural Processing, Processed fruits & vegetables, processed foods (other than fruits & vegetables) and Agricultural finance & marketing.
Similarly as per the protocol on Information Technology FNCCI and FICCI have agreed to work together to create and promote Information Technology driven products and services and stimulate and promote bilateral cooperation in the development of knowledge based and expertise in Information Technology.
As per the protocal a bilateral working group which would be amplified by Task Forces one for each of the prime areas identified i.e. E-commerce regulation and taxation, Trade in services, Intellectual property and movement of natural persons will be formed.
Nepal, USA sign MoU on Garment Export
Nepal and the United States of America (USA) signed an agreement on July 13 to allow Nepalese garment export to USA for a further period of four years starting January 1, 2001.
The agreement is only a renewal of the Memorandum of Understandings (MoUs) signed between the two countries in 1996 and 1997. The MoUs are due to expire this December.
Officials at the Ministry of industry, Commerce and Supplies, say the agreement signed six months in advance will allow Nepali entrepreneurs to utilize the excess quota on various export items.
Under the new arrangement, exporter can borrow from the underutilized quota to export items for which the quota has already been exhausted. However, the maximum borrowing limit from underutilized quota has been set at 9 percent.
In addition, an exporter can use a maximum of 12 percent of next year’s quota for the export of shorts and 10 percent for ladies dress.
Nepal and Canada also signed similar agreement on July 14 to facilitate Nepali garment export to Canada.
China declares Nepal outbound tourist destination
The government of the People’s Republic of China has declared Nepal as its ninth international outbound tourist destination, which makes Nepal first such destinations in South Asia.
The Chinese State Council took the decision early July to include Nepal in the outbound tourist destination list thereby allowing Chinese nationals to visit Nepal as tourists.
Nepal will have to wait for sometime before it welcomes the Chinese tourists. The decision will have to be complimented by various procedural arrangements. A press release issued recently by the Ministry of Tourism and Civil Aviation and Culture says the concerned authorities of the two countries will agree on the modality of Chinese tourist’s visit to Nepal.
According to China Tourism Administration statistics, over 8.4 million Chinese tourists, including those on business trips, traveled abroad in 1998, which crossed the 9 million mark in 1999.
NTMOA ad-hoc committee formed
With a view to safeguard patent design and trade mark related rights and to generate awareness about trade mark among the general public, industrialists have formed an 11 member Nepal Trade Mark Owners’ Association (NTMOA) Ad-hoc Committee.
A meeting of industrialists recently decided to form an ad-hoc committee under the chairmanship of Ajad Shrestha. The ad-hoc committee has Mahesh Jajhu and Pradeep Regmi as vice chairman and secretary.
Rabindra Shrestha, Subodh Gautam, Basanta Chaudhary, Vijaya Dugar, Prakash Sharma, Shiva Ratan Sarada, Rajendra Dhakal and Kumud Dugar are the members of the ad-hoc committee.
The committee will draft a constitution of the Association and submit it to the concerned office for the registration of the organization within three months, it is said. Unlike in the past businessmen have felt the need to be united for the protection of their interests in the context of accession to WTO and the liberalized market economy.
The committee has representation from various types of industries and development regions.
MoU signed for Lumbini Airport
The government recently signed a Memorandum of Understanding (MoU) with a French multi national; Alpa Consultant Company to develop the Gautam Buddha Airport in Bhairahwa into an international one.
According to the MoU; Alpa will use the modern BOT (Build. Operate and Transfer) method of build. operation and transfer to construct and develop the airport and install state-of-the-art instruments there.
As per the terms of the MoU; Alpa is to complete the feasibility study in the next nine months and then the government and the company will sign an agreement for construction. However, if the agreement is not signed then the government will not be liable to fund the study or any other cost.
Nepal Tea Development Corporation handed over to Pvt Sector
Ministry of Finance finally handed over Nepal Tea Development Corporation (NTDC) to Pursottam Lal Shanghai.
According to a press release issued recently by the finance ministry, “agreement were signed between the government and Pursottam Lal Shanghai for the purchase of 65 percent shareholding in NTDC for 267.105 million rupees.”
The agreement was signed for a term of 50 years at an annual rent of 28.1 million rupees, subject to renewal at agreed intervals, according to the release.
Task force constituted to look into power tariff
His Majesty’s Government (Council of Ministers) has constituted a seven-member task force under the convenorship of executive secretary at the Water and Energy commission Secretariat Bidhyanath Nepal taking into consideration the widespread public complaint that electricity tariff has become very expensive in the country.
The task force will make a study of the production, transmission and distribution system of Nepal Electricity Authority (NEA), technical, non-technical and other leakage of electricity, conditions of agreement reached with donor agencies, NEA’s financial management, property and physical management, expenditure control, interest expenses and rate of interest, NEA investment project, provisions of loan investment and equity of His Majesty’s Government and other concerned issued and present within 45 days a report and action plan along with recommendations on what methods should be adopted to check rise in electricity tariff.
The representative of Federation of Nepalese Chambers of Commerce & Industry (FNCCI) is also included in the task force.
Freight forwarders reach accord
Nepal Freight Forwarders Association (NEFA) and Federation of Freight Forwarders Association in India (FFAI) signed an agreement in Kathmandu recently to cooperate in simplifying trade between Nepal and India and promoting relations between the two organisations.
President of NEFA Ravindra Man Singh and president of FFAI Srinivasan signed the agreement on behalf of their respective organisations.
The agreement will help resolve the difficulties encountered in the trade between Nepal and India and promote bilateral trade, according to the association.
