Nepal-bound cargo starts moving from Kolkata port

The Nepal-bound containers stuck at Kolkata port in India have started moving since Tuesday, according to Nepal’s Consulate General in India.

The containers were stuck at Kolkata port in India due to the construction work of the broad-gauge railway yard on the Raxaul-Muzaffarpur section.

Around 700 Nepal-bound containers were stuck at the Indian port for a week forcing Nepali importers to pay high detention and demurrage charges.

Nepal’s Consul General in Kolkata Chandra Kumar Ghimire confirmed over phone that the authorities in India had permitted the movement of Nepal-bound containers from Kolkata port after the completion of construction project on February 25.

Initially, the Indian authorities planned to allow shipment of three consignments a week to Nepal but after talks with Railway Ministry, they permitted shipments of two consignments per day. Based on the current arrangement, all the containers will leave Kolkata port within the next four days.

Nepali side also coordinated with Eastern Central Railway – the Patna-based unit of Indian Railways – to give priority to the Nepali containers. 

Unlike earlier, when Nepali the containers used to wait for only  a day or two during the renovation work, this time took about a week due to the construction of a broad-gauge line along with the alternative roadways.

Due to new infrastructure, however, the transportation time between Kolkata port and Nepal border will come down to three days.

Private sector vows to create 50,000 jobs

The three-day Nepal Economic Summit 2014 concluded here today with a 19-point declaration, which pledges to create 50,000 jobs in four different large scale projects each in agriculture, energy and tourism sectors by 2015.

The declaration also envisages a high-level mechanism – that includes government officials and private sector representatives – which will identify regulatory hassles and recommend to ease doing business in the country. "It will help country’s position in the World Bank’s Doing Business Index go up by 10 notches by 2016," read the declaration that is proposed to be a basis for 'minimum common economic agenda'.

The government and private sector jointly come up with the declaration after three days of deliberations and it will be owned by the political parties too, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya said, addressing the closing ceremony of the summit, here today.

Joint secretary and the coordinator of the Foreign Aid Coordination and Cooperation Division under the Finance Ministry Madhu Kumar Marashini, reading the declaration said that the government will start the second phase of economic reform. "The government will also come with a strategy paper to develop three key sectors – energy, agriculture and tourism – and identify some 10 sectors for investment by 2016," he said, adding that the government will identify and work with domestic and foreign investors to create at least 50,000 additional jobs by the private sector in agriculture, energy and tourism areas of Nepal by 2015.

It has also emphasised the need to create an economic system that enables the private sector to grow and create wealth.

Organised jointly by the government and FNCCI, the three-day summit's declaration also focused on increasing tourist earning too. "Average tourist spending stands at $36 but it will be increased to $60 per day," it said, adding that the construction of infrastructure like regional international airport in Lumbini, Pokhara and Nijgadh will be expedited, apart from upgradation of Tribhuwan International Airport (TIA).

On the occasion, chief secretary Leela Mani Poudyal directed the state authorities to start implementing agendas highlighted in the declaration that has called for formulation of development strategies for the three sectors within the next six months.

Likewise, the declaration has also stressed on the need to review the existing land management systems and bring about regulatory framework that allows for contract farming and effective utilisation of land to give a boost to the agriculture sector.

It also envisages an idea of establishing an independent power trading company – that will provide a platform for trading energy between individual consumers and suppliers – to encourage innovation in energy supply and increase private sector participation in this sector.

Growth Sellers to organise HR Meet on March 21

Growth Sellers – a human resource solutions services provider based in Nepal. and also one of the pioneers in Human Resource Management – is organising the seventh edition of 'HR Meet' on March 21.

Growth Sellers that is also the only patented organisation authorised to organise world class event in Nepal every year is planning the meet that it expects as a perfect platform for every individual or organisation willing to stay pointed on the latest HR trends and benefited by the networking and learning opportunities it provides.

This year's event – with the theme 'Evolving Role of HR' – will see scores of international experts including Abha Maryada Banjerjee, Dr Mousumi Shengupta, Dr Nilanjan Shengupta and entrepreneur Hari Bhakta Sharma from Nepal, who will interact with over 200 participants.

Hundreds of individuals have been benefited by participating in HR Meet, making remarkable changes in their professional lives, said chairman and managing director of Growth Sellers Mohan Ojha.

Earlier HR Meets have witnessed the eminent experts in various fields with some of the past speakers consisting of Professor Mohanty from India, Dr Lindsay Godwin from USA, Steve Morris from Singapore, Dr RS Chalapathi from India, Sanjay Muthal and Sagarika Ghoshal from India, Mark Disney from UK, Suhail Gupta from India, Minocher Patel-Motivational speaker and Corporate Trainer, Mahesh Sharma-Founder of Know your Self^TM, Research & Training Academy (KYTS RTA) and joint secretary with the Government of Nepal Kewal Prasad Bhandhari to name a few.

Foreign investors interested in hydropower, urge to improve doing business indicators

The visiting experts and investors in the Nepal Economic Summit have shown their interest in investing in hydropower sector. However, they have urged the government to improve the business climate of the country.

Nepal needs to introduce number of reforms to improve country's doing business indicators, they said, suggesting to reduce lengthy documentation process and improve bureaucracy to attract more foreign investment.

Lengthy documentation has reappealed the investors, said vice-chairman of Standard Chartered Bank for Asia Thomas Harris, speaking at a session in the second day of the Nepal Economic Summit 2014 here today,

documentation process of 14 days for export/import in Nepal is the longest in South Asia, he said, citing reforms undertaken by the Philippines in recent years. "Reform in administrative process will help bring in foreign direct investment."

Nepal is ranked 105th in Doing Business 2014 report, down from last year´s position of 103. Easing the doing business will help attract more investment in Nepal, Harris added.

Likewise, global investment promotion specialist at World Bank, USA, Robert Whyte, on the occasion, suggested Nepal government to be serious toward investors. "The government officials should reduce consignment import and export costs paid for processes and public offices apart from removing the provision of going around seven to eight ministries for license to start business in the country," he added.

As Nepal ranks second last in the list of South Asian countries, after Bhutan, in terms of Foreign Direct Investment (FDI), clear policy and strong regulatory body will drive foreign investment, said president of Non-Resident Nepali Association Sesh Ghale. Urging to create investment friendly environment in the country, he said that lack of clear policy and regulatory body for foreign direct investment coupled with business-unfriendly bureaucracy have driving foreign investors away

Foreign Investment and Technology Transfer Policy of 1992 is outdated and it needs immediate revision,” Ghale added.
Former finance secretary Rameswor Khanal, on the occasion, prescribed a gamut of reforms like simplifying process to register businesses to process of liquidation of businesses.

Likewise, experts also discussed on government's failure in commercialisation of agriculture sector due to small landholdings, system of inheritance that have fuelled land fragmentation in recent years.

Average landholding of a Nepalis is 0.68 hectare, which is small for the commercialisation of agriculture, the experts said, adding that the sector needs more attention as some 77 per cent of the total population is dependent on agriculture.

Executive chairman of South Asia Watch on Trade Economics and Environment (SAWTEE) Dr Posh Raj Pandey asked the government to emphasise on strong implementation of policies while commercialising agriculture

The stakeholders including government, farmers, trading and cooperative organisations and other private sector players must go hand in hand to strengthen the agricultural sector in a unified manner, he suggested

Agriculture growth rate of Nepal during 2008-12 stood at 4.06 per cent, whereas in Pakistan it was 2.20 per cent, 2.80 per cent in India and 4.14 per cent in Bangladesh.
The expert panel also stressed on infrastructure, market, technology and information – that play a pivotal role in boosting agriculture – to commercialise the sector.

Global IME Bank, Commerz and Trust Bank Nepal to start operating as one unit after third quarter

Global IME Bank and Commerz and Trust Bank Nepal today signed the final Memorandum of Understanding for merger.

The merged entity in the name of Global IME Bank will start operating as a single unit after the third quarter, said Global IME Chairman Chandra Prasad Dhakal after signing the memorandum of understanding with chairman of Commerz and Trust Bank Nepal Shovakar Neupane, on behalf of their respective institutions here today.

One of the promoters from the Commerz and Trust Bank Nepal will represent in the board, Dhakal, said, adding that the remaining board members and the chief executive of the current Global IME Bank will continue to serve the institute.

Though, it is the second merger among the two commercial banks after NIC Bank and Bank of Asia Nepal (currently NIC Bank of Asia) lat July, the merger will be the first of its kind in terms of different promoters in two institutions.

By mid-April, the two Class 'A' banks will be completely merged, he added.

Both the commercial banks have scheduled their annual general meetings next month to get their merger proposals endorsed by the shareholders.

Commerz and Trust is holding its AGM on March 3, whereas Global IME has scheduled its AGM for March 5.

The merged entity is planning to publish a single merged third quarterly financial report,” Dhakal added.

The merger will help increase paid up capital that will give us more room for investment in productive sectors and large-scale projects,” Dhakal said.

The merged Global IME Bank will have Rs 4.10 billion paid-up capital.

Global IME Bank had earlier merged with two Class 'C' financial institutions –IME Finance and Lord Buddha Finance – to form Global IME Bank. Later, it merged with Social Development Bank and Gulmi Development Bank too.

After the central bank's initiation, the banks and financial institutions have been taking merger as a safe landing due to shrinking market size and and also to reduce operating cost.

The central bank had issued Merger Bylaws in May 2011 to facilitate the mergers, though it is planning to bring Acquisition Bylaw soon.

Currently, some 43 banks and financial institutions are planning mergers to become 18 institutions. Likewise, some 23 banks and financial institutions have taken Letter of Intent (LoI) from the central bank to merge.