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November / December Nepal
Nepal-China Non-Governmental Cooperation Forum Meeting decides on Action Programmes
4th Nepal-China Non-Governmental Cooperation Forum Meeting recently concluded at the city Wuxi of PR China. Federation of Nepalese Chambers of Commerce & Industry (FNCCI) President P K Shrestha led the Nepalese side and All China Federation of Industry and Commerce (ACFIC) Vice-Chairman Zhang Xuwu led the Chinese Delegation.
At the opening ceremony ACFIC Chairman and senior political leader of China Jing Shuping stressed on the need to explore new areas of economic cooperation drawing satisfaction from the achievements of the Forum.
Royal Nepalese Ambassador Rajeshwor Acharya read the message of Nepalese Prime Minister wishing the Forum meeting success in promoting Nepal-China trade and economic cooperation.
Chinese Ambassador Li Debiao presented Chinese entrepreneurs’ suggestion views and FNCCI Vice-President Binod B. Shrestha presented investment scenario. Zhua Rongchang presented the issues from Chinese side and Pradeep Man Vaidya from Nepalese side. Yadab Kant Shilwal presented academicians’ views.
The Forum meeting attended by P.K. Shrestha, A.R. Mulmi, B.B. Shrestha, P.M. Vaidya, Yadab K. Silwal, B.P. Ojha and Mukti N. Bhatta also express their views.
The Forum Meeting decided (i) to hold Chinese Exhibition in December 2001 in Nepal (ii) 5th Forum meeting at Pokhara (iii) Transit cooperation and promotion of healthy trade all along the border (iv) Religious and other forms of tourism (v) Banking. at the border (vi) study and recommended future cooperation on agriculture including seeds, IT, solar and hydropower, training of professionals, regular exchange between Tibetian business delegation and Nepalese, (vii) Acts and policies in Chinese and Nepalese Language.
Consul General from Tibet and Hongkong were also in Wuxi.
Joint Venture cooperation agreements (i) two on Herble processing (ii) one on Pasmina (iii) one on Agriculture Farm/Commercial Farm (iv) one on trade through land route (v) Pharmaceuticals were also signed during the meeting.
A group of the 26 members of the Nepalese delegation including A R Mulmi, P M Vaidya, A R Murarka, N R Bhusal concluded their study tour of Bejing.
Secretary General of FNCCI BP Ojha went to Shanghai and met Secretary General and officials of Shanghai Federation of Industry and Commerce (SFIC) to prepare ground work for the meeting between Nepalese & Chinese side.
Tea Development policy comes into effect
With the Tea Development Policy 2057 coming into immediate effect, the government aims to increase the annual production of tea from the existing 8.3 million Kg to 46.1 million Kg in the next ten years, which is expected to bring a profit amounting to Rs. 14 billion annually.
Of the targeted production, preliminary estimates show that within the next ten years, nearly 12.4 million Kg of tea will be consumed in Nepal while the rest will be exported to markets abroad, government officials said.
The land area for tea cultivation, which is presently confined to five districts Jhapa, Ilam, Terathum, Dhankuta and Sankhuwasabha will be expanded to other districts like Bhojpur, Ramechhap and Sindhupalchok.
The government will have to pool resources worth two billion rupees in order to meet the envisaged target of production, officials said.
Nepal has been exporting tea to countries like Japan, Germany and India.
The government in the course of next ten years aims to increase the cultivation of orthodox tea to 65 percent of the total production.
"We expect to increase the land area to 40,875 hectares in the next five years and generate employment for 79,310 Nepalese," Minister of State for Agriculture Baldev Sharma Majgaiya told.
Nepal stand at World Travel Market
Nepal Tourism Board along with the Royal Nepal Airlines and other 25 travel-trade companies from the private sector of Nepal participated in the World Travel Market (WTM) held from 13-16, Nov. 2000 at London, UK. WTM is the second largest travel trade fair in the world.
The WTM this year was participated by 627 exhibitors and 4,666 sharing companies from 165 countries marking a total of 5,293 exhibitors. The participation this year was significant because of the biggest ever presence of Nepal in WTM till date.
Nepalese travel-trade by participating in the WTM fair, got the opportunity of establishing strengthening, expanding and developing new business linkes with the UK based outbound operators and travel trade during WTM. WTM was largely participated by hotels, travel trade operators, national tourism organisers, travel trade publications from around the world.
Nepal Chamber & Karnataka CCI sign MoU
Nepal Chamber of Commerce (NCC) and Federation of Karnataka Chamber of Commerce and Industry (FKCCI) have signed recently a Memorandum of Understanding (MoU) for promotion of investment, trade and tourism between Nepal and the Indian state of Karnataka.
The MoU was signed by president of NCC Rajesh Kaji Shrestha and president of FKCCI K. Ramswamy in the presence of Karnataka Tourism Minister Roshan Beg, Commissioner for Industrial Development and Director of Industry and Commerce of the government of Karnataka G. Gurucharan and President of the Federation of Nepalese Chamber of Commerce and Industry Pradeep Kumar Shrestha.
The Memorandum of Understanding is expected to help in organising trade fairs, meetings and conferences, and promote joint investment, trade and tourism between the two countries. .
Nepal keen to sell excess hydropower
Nepal wants to sell to India excess electricity power after new facilities begin generating power later this year and next year, a top official of the country’s stateowned electricity authority said.
The mountainous Himalayan kingdom generates 376 megawatts of hydro-electric power just enough to meet domestic demand-but officials said more power would be produced later this year.
The Bhote Koshi power station, a Nepali-US private venture, will supply 36 mw later this year while the Kali Gandaki Project, a stateowned facility, was expected to add another 144 mw by the final quarter of 2001 when some smaller plants will also begin generating power.
"We will then be able to sell up to 150 megawatts of excess hydroelectric power in the rainy season," Prachar Mansing Pradhan, a senior official of the state owned Nepal Electricity Authority (NEA) said.
Currently India buys up to 50 mw of power from Nepal under an agreement signed 28 year ago. "We are negotiating to raise the quantity of power exchanged with India to 150 mw," said Pradhan.
Officials say increasing the export of hydroelectric power could held the kingdom narrow its trade deficit with India. The gap totalled $248.97 million in the period from mid July 1999 to mid July 2000.
NEA US companies sign a partnership Agreement
The Nepal Electricity Authority and two American Power Companies-Tacoma Power and Wisconsin Electric signed a partnership agreement recently in Kathmandu under the United States Agency for International Development (USAID) and the United States Energy Association (USEA) Energy Partnership Program.
The partnership will provide a mechanism for Tacoma Power and Wisconsin Electric to transfer their experience and expertise to NEA.
Hike in the price of Urea
Hike in the price of urea following government’s recent decision to resume subsidy, which was scrapped last year, has taken consumers by surprise.
Agriculture Input Corporation (AIC) Board of Directors recently decided to raise urea prices, simultaneously cutting back price of di- ammounium phosphate (DAP). The decision was made effective from 13th Nov.
As per the decision, new selling price of urea stands at Rs. 10,400 per ton, up from Rs. 8940 per ton before the hike. Similarly, DAP now costs Rs. 19,500 per ton, down from Rs. 20,400.
Prior to AIC’s decision, the government had announced to subsidize full interest on bank lons, which AIC, and even interested private sector parties, would need to obtain for urea purchases.
Carlsberg Golden Words Award to Gorkha Brewery
Gorkha Brewery Pvt. Ltd., a company of the Khetan group, has won the prestigious ‘Carlsberg Golden Words Award 2000’ recently.
The award, was handed over by chief executive offer of Carlsberg A/S, Flemming Lindelov, to the chairman of Gorkha Brewery P. Ltd., Mohan Gopal Khetan, amid a function organised recently in the Carlsberg Group’s head office in Copenhagen, Denmark. The brewery that produces Tuborg and Carlsberg, well known brands of beer, in Nepal.
Gorkha Brewery Pvt. Ltd, a joint venture of the Khetan Group and the Carlsberg A/S, holds a sizeable share of Nepal’s beer market and one of the highest tax payers of the country.
The brewery won the prize for its ability to maintain a high and uniform quality of beer in accordance with the strict quality standards determined by Carlsberg A/S, Denmark for its manufacturing units all over the world. "The Carlsberg Golden Words Award" has been presented since 1995-was founded as an appreciation of foreign brewery, which is brewing beer for the Carlsberg Group and which during the preceding year has lived up to the standards for uniformity and quality. It has previously been awarded to breweries in Finland, Ireland, Cyprus and Malaysia.
In Nepal, consistency in terms of product quality is one of the major reason why Gorkha Brewery Pvt. Ltd. has been able to grow ysear after year. Quality is a matter of top priority for every employees of Gorkha Brewery Pvt. Ltd. Whether that be in terms of procurement of raw material or delivery of finished product; everything and every process are subject to stringent quality control.
Khetan Group bags Cellular Phone Contract
Nepal Telecommunication Corporation’s monopoly on the cellular mobile phone business has ended with a private company promoted by the Khetan Group bagging the license to operate such services.
According to Rajendra Kumar Khetan, Executive Director of the company, it has plans to provide the services to around 75,000 customers. It will begin the services within the next seven months.
Khetan also said that the company has plans to provide additional facilities and services that include roaming facility under which the customers can use the phones even when they are in foreign countries.
This facility will provide access from 50 countries in the initial phase and 90 countries of the world in the later stage. The customers will also be given e-mail and internet facilities in the cellular phone sets.
He said the company will be developed as a public limited company by floating shares to the general public.
The company has agreed to pay over Rs. 24.1 billion to the government in 10 years.
Six bidders, including Khetan Group, had submitted proposals for the permission in response to the tender called by the government.
Samsonite a multinational enters Nepal
Samsonite, a leading multinational luggage manufacturer, has entered Nepalese market officially launching its products recently.
With the introduction of ‘Samsonite - Nepal’ to the Himalayan kingdom, Nepali consumers will get a wide range of genuine Samsonite luggage products at affordable prices, according to Dr. Ramesh Tainwala, Chief Operating Officer, Samsonite India Ltd.
Nepal is a growing market along with its growing tourism industry which will fuel the demand for Samsonite products in the country, he said. With the success of its launching in India, Samsonite entered Nepalese market, it was said.
Dr Ramesh also informed that ‘Samsonite-Nepal’ is willing to open up a state-of-the-art manufacturing plant in the Terai belt of Nepal as part of its expansion program. We will train Nepali people and they will replace foreigners brought in the beginning of the plant. This will generate employment and revenue to the government, he added.
Samsonite, which has its representation in 253 countries entered Nepal in its latest marketing scheme. It has opened three sales outlets in Kathmandu and has planned to open up more shops in the major cities of the country.
