Despite criticism for being involved in commercial activities, Nepal Army seems to have been expanding business more without any hesitation.
According to a draft bill for the revision to the Nepal Army Act, it wants to get legal clearance to invest money from its welfare fund in business activities ‘as a promoter’ as it has been lobbying for last few years. “We have submitted the draft to revise the Nepal Army Act (2006) to the government on July 16,” confirmed Judge Advocate General Ranta Prakash Thapa, who is in charge of the Army’s legal department.
“We are expecting that their draft bill soon gets government approval before it goes for parliamentary ratification,” he said, adding that the current Act bars Nepal Army from investing in business enterprises, companies and infrastructure projects like hydropower. “After receiving the draft bill, the Defence Ministry has formed a committee comprising officials from Defence and Law ministries and the Army to study it.”
The Defence Ministry will take a decision about the bill – that seeks revisions to different clauses including the one related to the investment of money from the welfare fund – based on the recommendations from the committee. The draft bill needs an approval from the cabinet before it is tabled in the federal parliament for endorsement.
Nepal Army has been eyeing investments in hydro projects and in the Treasury Bill, which will provide more returns than the interest that banks pay. Though, the bill is yet to be approved, Nepal Army has already approached the Department of Electricity Development, seeking to invest in the 25 MW Dudh Khola and 32 MW Bhimdang Khola hydropower projects.
Currently, Nepal Army has invested is in gas stations, schools, medical colleges and emulsion plants, apart from selling bottled water, but it wants to spread its wing, despite criticism from the different quarters of society.
Though, its primary role is to ensure the national security, the Nepal Army has been increasing interested in commercial activities, which has time and again, tarnished its image, according to the security experts, who are much worried about the Nepal Army’s inclination to business rather than limiting itself to its primary role of ensuring national security, gathering intelligence, protecting national parks and natural reserves and saving people during the times of disaster. “The more the Army is involved in non-military activities, the more it will get weakened professionally.”
Nepal Army was used in development activities by the then king Birendra Bir Bikram Shah, as he thought that the Army has become idle due to his ‘Zone of Peace’ proposal for Nepal. Birendra had proposed Nepal be declared ‘Zone of Peace’, which means the country would not need a big Army.
Likewise, the Army was involved in building roads during the conflict. Slowly, Nepal Army then started to getting involved in contracts for various projects. Currently, the incumbent government has also contracted Nepal Army for constructing the Kathmandu-Tarai expressway, which has also been criticised.
The Army, however, denies that its involvement in several projects is ‘commercial venture’. But the Nepal Army ‘welfare fund’ has to invest on various projects to give good returns to the depositors.
Constituted in 1975, the Army’s welfare fund currently has cash deposits of Rs 45.86 billion in different banks and financial institutions, apart from an investment of Rs 5.74 billion in different ventures. Every year, it has been adding billions, as the interest and the contribution from those, who are deployed in United Nations (UN) peacekeeping missions, to its coffers. It witnessed an increment of Rs 7.29 billion in its welfare fund in the last fiscal year alone, according to the Nepal Army press note issued today.
The Army wants to expand the business also to ‘expand its welfare fund’, claimed Thapa, in the press meet. “Bank interest is not a sustainable source of income,” he said, adding that the Army wants an investment in the projects that give high return. “The draft bill proposes provisions that would allow the Nepal Army to invest in projects ‘only after the government’s approval.’
Nepal Army has also been criticised, recently, for leasing out a new building it has constructed in Mahakal, in the prime location, to replace the earthquake-damaged Tri-Chandra Military Hospital that was constructed with the help of Britain in 1925 in memory of 20,000 Nepalis, who were killed in Europe in the First World War. The Army had demolished the 85-year-old neoclassical structure to rebuild a new hospital, and leased out for commercial purpose, which has been criticised by almost everyone blaming Nepal Army that it is turning into ‘corporate army’, and the combination of ‘gun and money’ is going to be more lethal weapon against democracy and federalism in the long run.
According to a draft bill for the revision to the Nepal Army Act, it wants to get legal clearance to invest money from its welfare fund in business activities ‘as a promoter’ as it has been lobbying for last few years. “We have submitted the draft to revise the Nepal Army Act (2006) to the government on July 16,” confirmed Judge Advocate General Ranta Prakash Thapa, who is in charge of the Army’s legal department.
“We are expecting that their draft bill soon gets government approval before it goes for parliamentary ratification,” he said, adding that the current Act bars Nepal Army from investing in business enterprises, companies and infrastructure projects like hydropower. “After receiving the draft bill, the Defence Ministry has formed a committee comprising officials from Defence and Law ministries and the Army to study it.”
The Defence Ministry will take a decision about the bill – that seeks revisions to different clauses including the one related to the investment of money from the welfare fund – based on the recommendations from the committee. The draft bill needs an approval from the cabinet before it is tabled in the federal parliament for endorsement.
Nepal Army has been eyeing investments in hydro projects and in the Treasury Bill, which will provide more returns than the interest that banks pay. Though, the bill is yet to be approved, Nepal Army has already approached the Department of Electricity Development, seeking to invest in the 25 MW Dudh Khola and 32 MW Bhimdang Khola hydropower projects.
Currently, Nepal Army has invested is in gas stations, schools, medical colleges and emulsion plants, apart from selling bottled water, but it wants to spread its wing, despite criticism from the different quarters of society.
Though, its primary role is to ensure the national security, the Nepal Army has been increasing interested in commercial activities, which has time and again, tarnished its image, according to the security experts, who are much worried about the Nepal Army’s inclination to business rather than limiting itself to its primary role of ensuring national security, gathering intelligence, protecting national parks and natural reserves and saving people during the times of disaster. “The more the Army is involved in non-military activities, the more it will get weakened professionally.”
Nepal Army was used in development activities by the then king Birendra Bir Bikram Shah, as he thought that the Army has become idle due to his ‘Zone of Peace’ proposal for Nepal. Birendra had proposed Nepal be declared ‘Zone of Peace’, which means the country would not need a big Army.
Likewise, the Army was involved in building roads during the conflict. Slowly, Nepal Army then started to getting involved in contracts for various projects. Currently, the incumbent government has also contracted Nepal Army for constructing the Kathmandu-Tarai expressway, which has also been criticised.
The Army, however, denies that its involvement in several projects is ‘commercial venture’. But the Nepal Army ‘welfare fund’ has to invest on various projects to give good returns to the depositors.
Constituted in 1975, the Army’s welfare fund currently has cash deposits of Rs 45.86 billion in different banks and financial institutions, apart from an investment of Rs 5.74 billion in different ventures. Every year, it has been adding billions, as the interest and the contribution from those, who are deployed in United Nations (UN) peacekeeping missions, to its coffers. It witnessed an increment of Rs 7.29 billion in its welfare fund in the last fiscal year alone, according to the Nepal Army press note issued today.
The Army wants to expand the business also to ‘expand its welfare fund’, claimed Thapa, in the press meet. “Bank interest is not a sustainable source of income,” he said, adding that the Army wants an investment in the projects that give high return. “The draft bill proposes provisions that would allow the Nepal Army to invest in projects ‘only after the government’s approval.’
Nepal Army has also been criticised, recently, for leasing out a new building it has constructed in Mahakal, in the prime location, to replace the earthquake-damaged Tri-Chandra Military Hospital that was constructed with the help of Britain in 1925 in memory of 20,000 Nepalis, who were killed in Europe in the First World War. The Army had demolished the 85-year-old neoclassical structure to rebuild a new hospital, and leased out for commercial purpose, which has been criticised by almost everyone blaming Nepal Army that it is turning into ‘corporate army’, and the combination of ‘gun and money’ is going to be more lethal weapon against democracy and federalism in the long run.
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