Ncell takes responsibility for greening of 10.2-km Ring Road stretch

 Ncell Axiata – as a part of its Corporate Social Responsibility (CSR) initiative – has taken up the responsibility for building and maintaining the greening of Koteshwor-Kalanki Ring Road stretch in collaboration with the Department of Forest and Soil Conservation (DoFSC).

“With the aim to greatly benefit the people, the greenery around Ring Road will contribute towards an improved environmental quality across the community,” the multinational telecom service provider said in a press note. “The project will cover approximately an area of 10.2-kilometer.”

Under the initiative, Ncell has already begun landscaping and building the green belt area, the press note reads, adding that the project began in November with the completion of the Balkhu-Ekantakuna stretch as a pilot phase already. “The project aims to transform this segment into an exemplary green belt area fostering the clean and green Ring Road.”

The company has also supported the plantation of trees in this stretch. Ncell will also ensure the maintenance of the green belt stretch and take care of more than 6,000 trees for 5 years long-term stewardship, it adds.

“Ncell’s collaboration with Department of Forest and Soil Conservation represents a major change in the way organisations can create impact by working together,” chief executive officer (CEO) of Ncell Andy Chong said. “Our partnership with the DoFSC to roll out the 10.2-km Greening of Ring Road initiative provides a great example of a public-private partnership,” he said, adding that the greening initiative will contribute to a healthy environment for the community as a whole and support to deliver Ncell’s climate action goals. “Greening of Ring Road is one of our efforts to address climate change, along with the need to reduce carbon footprint.”

Furthermore, we aim to contribute towards more sustainable projects that can create larger long-term impacts countrywide, he added.

“It remains the government’s broader priority to drive and promote greening the environment across the country,” director general of the DoFSC Man Bahadur Khadka said. “We are pleased to collaborate with Ncell in coordination with two municipalities for this exemplary project for the greenery development and maintenance of Ring Road’s green belt for the next 5 years,” he said, adding that he is delighted that Ncell has come forward to demonstrate their leadership by contributing to meaningful environmental outcomes on a significant scale during these challenging times as a part of their corporate social responsibility.

The majority stretch of the Koteshwor-Kalanki section of the Ring Road falls under Lalitpur district. Welcoming the collaboration of DoFSC and Ncell in this project, mayor of Lalitpur Metropolitan City ChiriBabu Maharjan said that Lalitpur Metropolitan City is ready to extend any support required for successful implementation of the project as it contributes significantly towards our Green and Blue Campaign aimed at greenery development and environment projection.

As a responsible corporate citizen, Ncell has been placing top priority on climate action and the environment apart from education and health sector to contribute the government towards achieving environment goals under the Sustainable Development Goals (SDGs), the press note reads, adding that environment is also one of the CSR areas defined by the government in the Industrial Enterprise Regulations for taking up social projects. “Ncell is also implementing a separate project to build a green park at the heart of Kathmandu.”

Earlier, the company had supported reforestation by planting 50,000 trees in 33 hectares of barren areas of Dhanushadham Protected Forest (DPF) and implemented environmental awareness programme in Dhanusha, contributing to awareness and conservation of the environment. After the implementation of the project, DPF was declared as ‘Illicit Felling and Open Grazing Free Zone’ by the government for the conservation and development of the forest.

Himalaya Airlines fulfills its annual CSR commitment

 As a part of its annual Corporate Social Responsibility (CSR) commitment of 2020 towards Prayas Nepal, Himalaya Airlines, a Nepal-China joint venture, yet again extended its support to the children of the organisation under its CSR banner. 

The Airlines donated yearlong supply of notebooks on the New Year Eve, according to a press note issued by the airlines. “Considering the ongoing pandemic, the airlines this year prudently added the Covid-19 essential supplies as well to the contribution,” it reads.

During a brief visit to Prayas Nepal on December 31, the officials of Himalaya Airlines handed over the educational and medical supplies to Prayas Nepal office bearers maintaining all the Covid-19 safety protocols. “The contribution included 1,650 notebooks, two infrared thermometers, 24 bottles of hand sanitizers and 1,000 surgical face masks,” the press note reads, adding that with its continuous contribution of essential educational and snack, grocery supplies over past 3 years, Himalaya has been able to make a difference in lives of Prays Nepal children. “Many of the students have been able to successfully continue their educational pursuit.”

This year too, a total of 27 students aged between 8 and 20 years will be receiving the yearlong school necessities to follow their academic courses, it adds. “The additional supply of Covid-19 essentials is aimed to safeguard the children from Covid-19.”

“2020 has been a year of uncertainty and dampened spirits, especially for children all over,” according to head of Department – Brand and Service Improvement – Ujjwala Dali. “Fear of Covid-19 spread and social distancing has hit hardly to schools and colleges,” she said adding that however with vaccines around the corner, there’s a light at the end of the tunnel and educational institutions are now gearing up to reopen. “With our persistent pledge to make meaningful contributions, we thought this is the right time to fulfill our annual commitment to Prays Nepal and we are determined to continue our support to the organisation’s efforts to groom the children in all walks of life.”

“We are sincerely thankful to Himalaya Airlines for their continual support to our children, since 2017,” president of Prayas Nepal Mani Joshi said while expressing gratitude on the occasion. “Himalaya’s contribution every year has not only helped in boosting morals of our children in this pandemic year but has also inspired us to ardently strive for the better upkeep of our children,” she said, informing that Prayas Nepal is a non-profit social organisation providing shelter especially to orphan, abandoned, abused and physically challenged children from different parts of Nepal, continuously striving to provide education and skillful trainings.

Himalaya Airlines, an international air carrier is a Nepal-China joint venture, has been established in August 2014.

Himalaya Airlines continues its support to fight against Covid-19

As part of its Corporate Social Responsibility (CSR) commitment to support the government’s ongoing efforts to contain the spread of Covid-19, Himalaya Airlines last week donated a portable ventilator and other medical items to AMDA Hospital of Damak in Jhapa and a PCR machine to Covid-19 Control Management Centre (CCMC) Gulmi.
Himalaya Airlines – last Saturday on July 19 – donated a PCR (NAE-32, ICTOB-16) machine and other essential medical supplies: 51200 disposable medical masks, 606 medical face shields, 575 medical goggles, 40 medical infrared thermometers, 35 pairs of protective boots and 5000 pairs of disposable gloves to Covid-19 Control Management Centre (CCMC) Gulmi, according to a press note of the airlines. ”The donation was handed over jointly by foreign minister Pradeep Kumar Gyawali and vice president of Himalaya Airlines Vijay Shrestha, in Gulmi in the premises of CCMC to the Mayor of Resunga Municipality Dilli Raj Bhusal.
“Any amount of medical supplies is not enough at this time of crisis, we are thankful to Himalaya Airlines for their abiding support at the time when then the nation along with whole world is going through the difficult phase,” foreign minister Pradeep Kumar Gyawali said, speaking on the occasion. “These critical supplies are very timely,” he said, adding that their use will help protect our health workers, who are at the frontlines working tirelessly to prevent the spread of Covid-19.
“Himalaya Airlines is proud to continue its support with the government in its efforts to contain Covid-19,” vice president of the airlines Vijay Shrestha said. “In this difficult period, it is our civic duty to support the government,” he said, adding that the donated PPE supplies reiterate Himalaya’s long-term commitment to serve beyond the call of our duty and help the nation in every possible way.
Continuing the support – today – president of Himalaya Airlines Zhou Enyong handed over a portable ventilator along with500 RDT Kits, 100 PPE sets, 500 N-95 masks, 2000 pairs of surgical masks, 5000 pairs of disposable gloves and 5 infrared thermometers to AMDA Hospital of Damak in Jhapa, where principal private secretary of Prime Minister Indra Bhandari thanked Himalaya Airlines, while receiving the donated PPE materials on behalf of the hospital.
“Our consistent commitment and business value is first of all, to serve and make contribution to the country and society,” Zhou Enyong remarked, speaking on the occasion. “During the pandemic, though the airline itself is going through a crucial phase, facing many difficulties; we have made our best efforts to contribute in various ways, be it with donating funds or medical supplies or by operating Cargo flights for critical supplies and repatriation flights to various destinations for the stranded citizens of the country without any employee layoffs,” he added.
Since the beginning of the deadly pandemic, Himalaya Airlines has been continuously striving to support the nation in many ways; apart from the contribution of 10 million to government’s Covid-19 Fund, the Airlines has till date operated 24 charter flights to bring in total of 177 tonnes of critical medical supplies and has successfully operated 63 Repatriation flights to bring back home 10140 stranded Nepalis safely maintaining all Covid-19 safety protocols.

Panel recommends NAC privatisation

A task force has recommended the government to privatise the national flag carrier, apart from proposing immediate reform measures in 13 areas.
The report also recommended divestment of 49 per cent of Nepal Airlines Corporation (NAC) shares to Nepali and foreign investors and the public. The report has also suggested renaming NAC as Nepal Airlines Company Pvt Ltd, where the government would have 51 per cent stake, float 35 per cent shares for foreign or Nepali investors, 1.5 per cent shares for NAC staffers, 1.5 per cent for civil servants, six per cent for tourism entrepreneurs and five per cent for the public.
“NAC is operating under the Nepal Airlines Act-1962, while a lot has been changed in the aviation sector since last five decades,” former tourism secretary and coordinator of the task force – formed by the government on August 7 to bring reforms in NAC – Sushil Ghimire said, explaining the reason for the NAC’s inability to adapt to the changes. “NAC’s operation modality needs to be changed to make it competitive and commercially viable.”
Former tourism secretary Sushil Ghimire lead the team that includes chartered accountant (CA) Subodh Kumar Karna, management consultant Dim Prasad Poudel, captain Sudhir Sumsher Rai, and the tourism ministry’s joint secretary Buddhi Sagar Lamichhane.
Ghimire – submitting the report to the Ministry of Culture, Tourism and Civil Aviation today also said that the national flag carrier should uphold its corporate social responsibility (CSR), even if it is transformed into a profit-oriented company. “NAC should be operated under public-private partnership model,” he added.
The Ghimire-led committee is the seventh in two decades. Earlier too, many studies have been conducted and they have also recommended privatisation of NAC but the successive governments have not yet dared to reorganise the ailing government entity.
However, tourism minister Yogesh Bhattarai – speaking at a press conference after receiving the report from the task force – directed the ministry to take action based on the recommendations by setting a timetable.
The NAC – which is on the brink of bankruptcy due to debts and a poor operation plan – has been facing financial crisis and the report has recommended the ministry to bring help the government entity to improve its financial health. According to the report, NAC’s total loss stands at Rs 5.21 billion, while has a debt burden of Rs 40 billion. “Its total assets amount to Rs 3.60 billion.”
NAC has failed to pay its installments for the last three quarters due to deepening financial crisis. But the report also suggested the government to renegotiate NAC’s interest rate as it is higher than the market rates. It has been paying an interest of Rs 3 billion annually to its lenders. “Lenders' investments are at risk since the corporation has already defaulted on three instalments,” according to the report.
NAC lenders – the Employees’ Provident Fund (EPF) and Citizen Investment Trust (CIT) – are state-owned entities but they have levied a high interest rate of 10.50 per cent, though the current market interest rate revolves around 6 per cent to 7 per cent.
Apart from recommending the NAC to conduct sector analysis, improve its fleet and flight management, the report has also urged to focus on human resource management as the national flag carrier lacks manpower. “The NAC has neither been able to offer attractive wages to new recruits nor has it given good raise to its current staff due to ailing financial condition,” the report reads, suggesting NAC to utilise information communication technology (ICT), conduct due diligence audit, upgrade its accounting system into Nepal Financial Reporting Standard (NFRS), analyse performance indicators, invest more in infrastructure including transit cargo store, passenger transit hall, hangar, helicopter service, catering services and establish flight training institutes.
Recommending the corporation to immediately add two Airbus 320 aircraft to fly to newly-identified destinations, the report asked the NAC to find out suitable destinations through sector analysis. “The additional aircraft will add flight frequency in the destinations where the NAC is making profit, and operate flights to NAC-identified destinations Riyadh, Seoul, Beijing, Shanghai, Tokyo, and Australia where the passenger flow is high,” the report reads, suggesting the NAC to procure aircraft directly from manufacturer as it maintains transparency and makes the work easier. “The NAC should include a representative of the government or the Finance Ministry in the NAC’s committee while negotiating to procure aircraft.”
The first report – prepared by a high-level committee led by former chief secretary Damodar Prasad Gautam in February 2002 – had also suggested purchasing aircraft directly from the manufacturer to prevent financial irregularities.
Another report by a committee – in August 2002 – led by economist Shankar Sharma had also suggested to either give 60 per cent shares to a foreign strategic partner and the rest was to be divided between NAC (10 per cent), tourism entrepreneurs (10 per cent), corporation employees (5 per cent) and public (10 percent), or dissolve the corporation, establish a new company and then allocate 60 per cent shares to a foreign airline.
Likewise, a report prepared by the International Civil Aviation Organisation (ICAO) in September 2004 had suggested a parent-subsidiary model. The parent company would look after international operations while the subsidiary would look after domestic operations. It had also suggested to gradually privatise the NAC.
In January 2010 too, another committee led by joint secretary at the Tourism Ministry Murari Bahadur Karki, suggested a company model, with 51 per cent shares going to the management partner and 49 per cent to the government.

Himalaya Airlines join hands with AOC-N to boost their CSR Activities

Himalaya Airlines – an international air carrier – joined hands with Airlines Operating Committee (AOC)-Nepal (AOC-N) to fortify its Corporate Social Responsibilities (CSR) initiative of contributing for the betterment of the society. Consortium of airlines came in together with AOC-N, for their annual welfare activity today. Under AOC-N’s banner, this year’s welfare activity was carried out to support Matatirtha Bridhashram Samiti located at Matatirtha, Kathmandu, a press note from the airlines reads.
Acknowledging the need for the extra care, for the health and hygiene of the elderly ladies, Himalaya Airlines’ contribution of the supplies of cleaning materials included: soaps, detergents, toiletries, towels, brooms and the hair trimmers on the special request for the occupants of the old age home, the note reads, adding that Matatirtha Bridhashram Samiti located about 15-km west of Kathmandu was established in 1997 and provides shelter to the female citizens of Nepal over 60 years of age who are needy,without shelter, without guardians and in need of care and attention. “Apart from the food, shelter, and clothing they provide health services along with the religious and entertainment programmes for the residents.” A total of 25 elderly women and 5 helpers reside in this Old Age Home.
While handing over the goods to the Samiti Manager Ram Thapa, head of Department of Brand and Service Improvement Ujjwala Dali said that Himalaya Airlines appreciates AOC-N’s sincere efforts for this great initiation and is thankful for including us to contribute our share to this Samiti. “We are honoured to be a part of this solicitous activity as H9 is always keen to join hands for the welfare of the society,” she sadia, adding that sheltering these mothers and nurturing them at the times they need most, is a very noble task shouldered by Matatirtha Bridhashram Samiti. “Himalaya Airlines is determined to further extend the helping hands to the Samiti on a more frequent basis and requests all the other organisations as well as the individuals to join in together to support these mothers.”

Ncell joins hand with Rato Bangala and government to hold international conference on quality education

The second International Conference on Quality Education 2019 (ICQE2019) concluded here in Kathmandu today.
Ncell – under its corporate social responsibility (CSR) – had partnered with the Ministry of Education, Science and Technology (MoEST) and Rato Bangala Foundation (RBF) to organize the three-day conference that saw participation of officials from the government as well as district level, teachers and national and international researchers, according to a press note issued by the Ncell.
The chief guest of the opening ceremony of the conference, education minister Giriraj Mani Pokharel, on the occasion, said that Nepal will be able to achieve its 2030 of Nepal's School Sector Development Plan (SSDP) vision of ensuring equitable access to safe and quality education for all only by focusing on providing quality education in the classroom, from early-childhood onward.
"We are extremely happy to partner with MoEST for its overarching strategic plan to attain SSDP Goals,” the press note quoted chief executive office of Ncell Andy Chong, as saying during the programme. “Ncell's focus is to empower foundational skills by providing platform for teachers from public sector that do not have access to training opportunities.”
The conference featured more than 75 expert-led presentations, 60 workshops, 14 parallel sessions over the three days, focusing around the theme ‘Learning by doing approach on early-childhood development model’, the press note reads, adding that over 700 participants, including more than 300 government level teachers from 55 districts, attended the conference. “Experts from Singapore, the United States, India, China, and Bangladesh trained the participants in the conference.”
Ncell aims at empowering education from the roots by delivering special skills, knowledge, and expertise within the education sector to help empower in aspects such as skills training, enhancing early-childhood education and knowledge sharing with those involved in the education sector at large, with this partnership in ICQE 2019 with Education Ministry and Rato Bangala Foundation, the telecom service provider claimed.
The post-conference workshops are scheduled to be organised at each of the seven provinces with a focus on quality education at early childhood education, the press note adds. 

Banks to give Rs 100 for opening account

The banks are providing a customer Rs 100 if they open an account in the bank.
To increase the financial transaction through the banks and financial institutions, under the government scheme of ''Lets Open Bank Account Campaign, 2076' for opening bank accounts for all Nepalis. The government is launching the campaign from Baishakh 1, 2076 (April 14, 2019).
The central bank has also simplified the process of opening bank account as part of its effort to help the government in increasing people's access to finance. The new rule introduced by the central bank not only requires bank and financial institutions (BFIs) to use simplified know-your-customer (KYC) form under 'Lets Open Bank Account Campaign, 2076', but also paves the legal way for allowing them to deposit Rs 100 on those accounts from the bank's side, according to a circular of the central bank. The banks can count Rs 100 deposited in accounts opened under this campaign as their corporate social responsibility (CSR) expenses.
BFIs are required to spend at least one per cent of their total net profit in CSR activities. The central bank has also prescribed a list of activities – including activities organised to achieve Sustainable Development Goals (SDGs) and direct donation to education and health for poor families – where CSR fund can be utilized.
Under the new rule, people can now open bank accounts by filling up a simplified KYC form and enclosing a copy of government-issued identity cards along with their photographs.  However, the limit for annual transaction for accounts opened using the simplified KYC form has been set at Rs 100,000. "If the transaction is higher than that, the bank should make the client fill up the full KYC form," according to the central bank.
The campaign was announced through the budget for the current fiscal year 2018-19 with an aim to increase financial access and inclusion in the country.
The new provision is aimed at encouraging banks to help the government in its campaign to bring all people within the ambit of banking sector and also to formalise the economy.
Currently, there are 23.54 million deposit accounts as of mid-July last year, according to the central bank data. Lately the central bank has been offering various incentives and facilities to BFIs for deepening financial penetration. The central bank has also directed the BFIs to reach out to all 753 local units.

ICIMOD, NMB Bank join hands for mountain communities in Nepal

The International Centre for Integrated Mountain Development (ICIMOD) and NMB Bank, signed a Memorandum of Understanding (MoU) to provide the mountain communities in Nepal better access to finance today.
NMB and ICIMOD hope to build on each other's network and strengths to foster cooperation and contribute to sustainable mountain and socio-economic development in Nepal through knowledge intervention and business promotion, according to a statement issued by ICIMOD.
The partnership focuses on achieving and delivering the shared values and goals of the organisations. The three broad focus areas of the collaboration are access to finance, impact investment, and corporate social responsibility (CSR) activities for the benefit of mountain communities.
"ICIMOD is increasingly stepping up to work closely with private sector organisations in Nepal and other regional member countries of the Hindu Kush Himalayan region," said director general of ICIMOD David Molden, speaking after signing the MoU.
"We see that there is synergy in businesses and would like to engage in a meaningful partnership with NMB Bank to enhance our impact on mountain communities," he added.
ICIMOD recognises NMB as a strategic private sector partner that can provide communities the much-needed access to finance for sustainable livelihoods and the success of interventions in Nepal.
For NMB Bank, ICIMOD is a strategic knowledge and technical partner to link to social and environmental activities as well as activities related to business links and business opportunities in Nepal.
NMB is a financial institution and a member of the Global Alliance for Banking on Values. "NMB believes that investing in real economies is pertinent to the long-term economic sustainability of Nepal,"chief executive of NMB Bank Sunil KC said, adding that the collaboration with ICIMOD is in line with the bank's faith in value-based banking. "We are pleased to add value to ongoing ICIMOD activities by providing mountain communities better access to finance. Our partnership with ICIMOD will provide economic and social benefits to mountain people and help increase their income."
“For ICIMOD, working with the private sector provides greater development impact, opportunities to upscale and longer-term sustainability,” director of Strategic Cooperation, ICIMOD Basanta Shrestha said, stressing that ICIMOD, through its partnership with NMB, would like to 'leverage knowledge resources from its research, demonstration, and pilots for business development opportunities and promote social impact investments for the benefit of mountain communities.'
In August this year, Department of Irrigation, the Government of Australia, and ICIMOD, in partnership with the Alternative Energy Promotion Centre (AEPC), launched solar-powered irrigation pumps (SPIPs) in Saptari. The SPIP project is an ICIMOD pilot on clean, reliable, and affordable technology for year-round irrigation.
NMB Bank offered a special loan package to farmers, which allowed them to purchase SPIPs. As part of its CSR activities, NMB also handed over varieties of seeds to flood victims in Saptari.

Central bank directs banks to hike paid-up capital

Encouraging further consolidation, central bank today directed the banks and financial institutions to hike paid up capital within next two years.
The commercial banks need to increase their paid-up capital by four fold to Rs 8 billion – from current Rs 2 billion – by the end of fiscal year 2016-17, said central bank governor Dr Chiranjivi Nepal unveiling the Monetary Policy for the current fiscal year 2015-16, here today.
Likewise, development banks should increase their paid-up capital upto Rs 2.5 billion as per their working area, he said, adding that the minimum paid-up capital requirement for finance companies will be increased from Rs 200 million to between Rs 400 million to Rs 800 million.
Nepal said that the move to raise the paid-up capital was taken to strengthen the banks and financial institutions, make them competitive and bring financial stability. "The objective is to enable a commercial bank to invest in a big infrastructure project on its own without consortium,” he said.
The banks and financial institutions have no other options than to issue rights share, bonus share and further public issue apart from merger to increase their paid up capital. Earlier, central bank had asked the banks and financial institutions to go for merger, according to their convinence. "The move will help lead merger and acquisition – the buzzword that started a decade ago – or the consolidation process in the banking sector to a logical end," said deputy governor Maha Prasad Adhikari. " The central bank move will also encourage good governance," he said, adding that the move is also aimed at bringing a mixed group of promoters to promote self-supervision.
The banks and financial institutions will have to meet the new capital requirement without reserves within the next two years according to the Monetary Policy 2015-16. "The move is aimed at encouraging mergers and consolidation apart from rights issue, bonus issue and issuing further public issue," he added.
But the bankers said that the time period of two years – to increase paid up capital –  is too short, though in the long run, they accept, they have no option than to increase paid up capital. "The merger is not a magic wand," the bankers said, adding that mergers without right partners could be disastrous.
Likewise, some bankers also argued that the move will hurt central bank’s policy of separating the professional bankers and businessmen because the latter are ones with more money to invest. "The increament of paid up capital itself is not an issue, but the time frame is too short,” said president of Nepal Bankers’ Association (NBA) Upendra Poudyal.
However, the sudden but expected move of the central bank to hike paid up capital will fuel the share market.
According to share narket analyst Rabindra Bhattarai the bull run in the share market will not last long as the investors willnot get desired return on their investments in the next two years.
The first Monetary Policy of the incumbent governor Dr Chiranjivi Nepal has, however, not changed much of the existing provisions.
The expansionary Monetary Policy has kept cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged, despite speculation that both could be hiked to check inflation. The Policy has targeted to keep the inflation at 8.5 per cent, though it has not devised any monetary instrument to crack whip on inflation.
The Policy acknowledging the reconstruction drive – in the aftermath of devastating earthquake – and supporting the expansionary fiscal policy lacked plans to deal with price hike, though it has focused on macroeconomic stability and fuelling growth to six per cent.
The monetary policy has also failed to come up with measures to effectively deal with the issue of excess liquidity as the banks and financial institutions currently have over Rs 100 billion of excess liquidity that could increase inflationary pressure.
Last fiscal year, central bank had raised CRR — the portion of total deposits that banks and financial institutions must park at the central bank — for commercial banks to six per cent. Likewise, development banks have to maintain CRR of five per cent as in the past, while finance companies do not have to park more than four per cent of the total deposits at the central bank like in the previous year.
Likewise, SLR — the portion of deposit that has to be invested in government securities and assets like gold — has not been changed either. But policy rate, also popularly known as bank rate, has been revised downwards to seven per cent from eight per cent. The banks and financial institutions that approach the central bank — the lender of the last resort — for loans in dire situation will start getting funds at seven per cent interest rate from now onwards.
The policy has also introduced a new concept of Infrastructure Development Bank – following the budget – as a joint venture with a paid up capital of Rs 20 billion to fund big infrastructure projects.

Paid-up capital requirement 
Institutions – existing capital – requirement in two years
Commercial banks – Rs 2 billion – Rs 8 billion

Development banks
• National level – Rs 640 million – Rs 2.5 billion
• 4 to 10 district-based – Rs 200-300 million – Rs 1.2 billion
• 1 to 3 district-based – Rs100-300 million – Rs500 million

Finance Companies
• National level – Rs200-300 million – Rs 800 million
• 1 to 3 district-based – Rs100-300 million – Rs 400 million

Monetary Policy 2015-16 Highlights
• Inflation target of 8.5 per cent
• Banks and financial institutions should bring chip-based debit and credit cards by mid-October
• Spread rate to be used for microfinance institutions also
• Special supervision of too-big-to-fail banks
• Foreign exchange facility of up to IRs 75,000 to be extended to settle payments of Indian transport companies
• Foreign exchange facility of up to $500 to be extended to Indian tourists visiting Mansarovar Kailash through Nepali tour operators
• CRR, SLR not changed
• Banks and financial institutions should invest certain portion of profit to train human resources and for corporate social responsibility (CSR)
• Banks and financial institutions can use local currency bonds to maintain statutory liquidity facility
• Liquidity Monitoring and Forecasting Framework to be revised
• Registration fees and other pre-operating expenses of foreign investors — who establish business with 100 per cent foreign investment — to be reckoned as investment
• Permission to be extended to establish national-level Infrastructure Development Bank with a minimum paid-up capital of Rs 20 billion
• Banks to be categorised as ‘Systematically Important’ depending on impact they could create on the entire financial system; separate standards to be created to regulate and monitor such institutions
• Prompt corrective action to be taken against banks and financial institutions that fail to meet liquidity requirements
• Deprived sector lending requirement raised by 0.5 percentage point
• Banks and financial institutions allowed to extend loan of up to Rs 1 million on security of land not linked with motorable road unlike current provision
• Special refinancing facility at one per cent interest to increase credit flow towards agriculture sector and small enterprises in districts with high poverty incidence

Coke plans sustainable social development

One of the top global brands in 2013, Coca Cola is manufactured in Nepal in two places at Balaju – by the Bottlers Nepal (Balaju) – and at Bharatpur – by the Bottlers Nepal (Tarai) – both of which are listed companies at the Nepal Stock Exchange (Nepse). Bottlers Nepal (Balaju) has listed 1,948,787 units, whereas Bottlers Nepal (Tarai) has listed 1,210,000 units of shares at the Nepse. Both the shares have been trading at around Rs 1,700 per unit at the stock market. Coca Cola that has come to an existence some 127 years ago is a multinational company and popular around the globe. Coke's country manager for Bhutan and Nepal Shadab Khan speaks about the company's plan, CSR activities, market and quality;

How is the market of cold drinks in Nepal?

Khan: I think the market is extremely buoyant. Personally from Coca Cola stand point of view I am extremely excited about the opportunity. We just made $26 million investment last year in Bharatpur. That only shows the commitment we have for the market and what we think of the market is going to be. So the market for us is growing and continues to grow.

Will there be any difference in company's policies from past years to next year?

Khan: I think from a market perspective, consumer preferences are getting more and more evolved. But at the same time you have a lots of Nepalese who have not tasted a beverage once a year. So from that perspective, its going to be an interesting challenge for companies like ourselves to be able to play that differently across metro Nepal, which is all the top 12 towns and places where we already have distribution. Worse is rural Nepal. So our focus is going to be how we will ensure more and more places that we can reach and ensure more and more Nepalis have 'a sip of happiness' as we call it.

Market expansion is one aspect, whereas equally important is ensuing quality. Mostly in the rural parts there has been complaints about the quality. What is the company's strategy to supervise and monitor quality regularly across Nepal?

Khan: Quality for Coca Cola is paramount. We have reached here because extremely quality focused and quality sensitive. We have an extremely robust mechanism for ensuring good and safe quality products. There are two aspects to quality. One is quality within and how you manufacture the products. We are ensuring the state of the art technology that goes in. Our $26 million plant is a testament to that, apart from the best equipment we put in to manufacture and processes that we do have, which are regularly audited. Our audits are not scheduled. We don't tell you that I am coming. Our auditors just land up on the door and they open and start checking. Its always a surprise audit, which ensures that quality. We call ourselves 'audit ready system'. That's the simple matrix around to ensure quality in all our products and all our factories. We have global standards. There is no different standard from Africa or US or for Asia. It is the same quality of product that you get every where around the world. One you have to ensure what you do is water tight and the second aspects is what we do in market. There are more compliance checks again. We fix the basics and then ensure that what you do in the market. We have a full-fledged Dual Product Management (DPM) team that is regularly visiting the market. This is different from the Sales Team. Its not the sales guys going there, it’s a quality team that goes in the market and does checks. There is a monthly check that happens from the Atlanta Global Team as well. To check on beverage quality, package quality, what's happening in the market and all of these are fed back to plant to ensure the things are improved. The sale steam does its own checks, its regular monitoring mechanism. From the supply chain team as well, there is what we call warehouse upkeep audit and route vehicle upkeep audit. They check how our distributors ensuring stocks, managed, maintained. And at the end, the last mile, all of us from managing director to sales executive have our personal journey plan (PJP) regularly. We visit the market ourselves constantly keeping the check on what is happning. Even now we are actively picking back products and destroying. And we are now keeping the Department of Commerce posted on steps that we are taking.

How is the competition in the market?

Khan: Competition is strong everywhere. Thankfully because of the love Nepali consumers have for our brands we are strong and continue to gain share. We fully respect competition because unless you have competition in the market, you tend to get sometimes complaisant. Somebody who is on your toes can only ensure that you are doing what best you can.

How is the competition helping you diversify products?

Khan: It’s a question of market dynamics. And what we can do in each market. Apart from Coke, Fanta, sprite and kinly soda, we are looking at other categories that make sense. From a Nepal market perspectives, what we can do efficiently here. We have stared importing Maaza, and cans. Step by step whatever we see as market demands, we tap in like Maaza was only started last year. Every year we look at trying to do something interesting fro the consumers.

Is there any plans to start manufacturing Maaza in Nepal or starting any new plants?    

Khan: I never say no. Right now we have had fantastic response fro Maaza. But for any new manufacturing to start we have to be able to sustain plant investment. Yes, as and when we believe there is potential for us, we start manufacturing locally. About plans for new plant, not that I know of immediately. But we have just expanded our operations in Chitwan. Atleast fro the nest few years, we have more than enough capacity to ensure that we can service our market efficiently.

What do you think CSR activities help establish brands or the companies feel it morally responsible to give back to society under CSR?

Khan: The brand a moral responsibility. As I call it, we are a global company but in local business too. We hire, live, manufacture, distribute locally. We operate in this environment. You could be whoever, operating anywhere but you are operating in this environment. And given brands like us, we have the scope and able to do sustainably something. Therefore it makes imperative for large brands like us to do CSR. We believe in golden triangle. As one company we cannot do everything but government, civil society and our partners come together, that's what we call golden triangle, we can do something. So, corporate civil society and governments can really start to make difference.

But most of the companies do CSR to establish and promote their brands. How is the case with Coca Cola?

Khan: Every company has their own ways of doing things. But Coke does it primarily because we genuinely believe. We have the ability and responsibility to do better. So, sustainability for us is its in our blood. Coke flows in our blood so sustainability also flows in our blood. We don't do things that make difference in our business. We have three large buckets; Me, We, World. Me is for the individual. We do things like supporting marathons, healthy active living programmes whether football like Coca Cola Cup or cricket programme in Sri Lanka and India. In the We part, its about community. As we are a global company with a local business. We operate within a community. We have started a programme called 5BY20, which is our chairman's promise empowering five million women by 2020 across the world. We have launched that programme in Nepal as well. Last year, we have trained 1,015 women retailers on how to run a shop. We also support My School, which is basically a programme where we go and rejuvenate schools. We have done with 13 schools so far between Kathmandu, Lalitpur and Bhaktapur. Over 13,00 students benefitted from the programme. There are five different aspects of the programme like ensuring clean drinking water by water harvesting programmes with Sajha, recreational facilities, sanitation, and ensuring they start to become a good citizen. This rounded development should start from very early ages. In the World piece, we do a lots of things like environment. we are now working with Hamri Bahini, Sagarmatha Pollution Control Committee and Everest marathon. We believe that its our duty in many ways to do it.

What is the CSR budget of Coke?

Khan: Globally we do separate about one per cent of the our profit. In Nepal also we do separate one per cent of profit but the beauty of Nepal is, we also leverage our global funds very well. The Coca Cola Foundation has a lot of foundation money and we try to get as much as we can from that kitty as well. We have started working with WWF on the Koshi Basin, that funding is all from global team. Similarly, we also do our projects like UN Habitat on the safe water project in Tarai to ensure household water treatment. Because one of the biggest reasons for diarrhea is bad quality water. As a responsible corporate operating in Kathmandu, Kathmandu is extremely water stressed, so we tied with Smart Pani for water recycling, which we have always been doing. With Sajha Yatayat in 130 ropanis of land we have started water recycling plant that can recharge almost 10,000 kilolitres of water annually. It will be continued with other partners in other parts of the country too.

Generally multinational companies are said to be interested in third world countries like Nepal only to make money. Is Coke going to change people's perception with all these good work?

Khan: All organisations either local or multinations exist to make money. I don’t think commercial aspect to business is bad. Business needs to have commercial aspects. Besides that business also needs to be responsible. For companies like Coca Cola, its in our blood. We have been doing CSR and not talking about it since we have started 127 years ago. And even today we don't talk much about it. It is something all companies absolutely needs to do. We have reached the position where we can make change we need to do.

What are the three major challenges for business expansion in Nepal?

Khan: It’s a mix of both external and internal. How we ensure more and more consumers make available of our products, that's one key aspect. last year, there has been a fair amount of disturbances due to closure that has impacted our ability to manufacture. Now with new government and Constitution in next 12 months, its going to be better situation. Infrastructure is another bottleneck as getting to some parts of Nepal is extremely costly. Its all a question of time, and all of this is going to be sorted out. For me problems are always short-term. The current challenge is what we can do as a company and make our products available everywhere.

CG starts Leadership and Management Development Programme

Chaudhary Group (CG) has come up with the concept of Leadership and Management Development (LMD) programme, a first of its kind training programme for its employees.

The concept of LMD programme was conceived by the president of CG Binod Kumar with the vision to transform the lives of CG executives by promoting critical thinking and developing their skill and ability to match and be above the requirements of the competitive world.

The company first identified around 50 people, whose performance had been good in the past year from its vast pool of staff.

Ram Bhakta Shrestha and Avash Niroula were then roped in as training experts for evaluation and the final selection of participants who selected 30 employees to be a part of the first batch.

Shrestha, also a management trainer, has over two decade long experience in the field. He was chief of organisation development at Nepal Administrative Staff College from 1990 to 2012. Likewise, Niroula is a management trainer and consultant at Center for International Training and Development (CITD).

The mission of the programme, which will be conducted over 24 weeks, is to promote a learning environment, and motivate future leaders.

The programme will focus on different aspects of learning and incorporate class and projects based learning, and on the job training. The training will also require participants to be involved in CSR activities. A strict evaluation will be carried out throughout the duration of the programme to ensure full involvement and consequent growth of the participants, according to the CG that thinks leaders have an extremely important role to play in any organisation.

CG has also decided to incorporate Art of Living classes in the training session keeping in mind the need for leaders to be able to remain calm and focused in highly competitive settings. CG management believes that its employees are its assets and the programme is an attempt to hone those very assets.

Yunus Centre and CG Foundation join hands to form a Social Business Fund

CG Foundation — a CSR initiative of Chaudhary Group — signed an agreement with the Yunus Centre today to set up a Social Business Fund (SBF).

Nobel Laureate Prof Muhammad Yunus and chairman of Chaudhary Group Binod Chaudhary signed the agreement to establish a new joint venture — Social Business Fund (SBF) —  and undertake collaborative activities in Nepal to help alleviate poverty through various social business endeavors, on behalf of their respective institutions.

According to the agreement, Chaudhary Group (CG) will organise the finances to create a Social Business Fund (SBF), while Yunus Center will provide the needed technical support. The Social Business Fund will finance social business ventures to help improve lives of the people in Nepal.

The Social Business Fund will also abide by fundamental principles of social business postulated by Prof Muhammad Yunus.

According to principles, the business objective will be to overcome poverty or one or more problem like education, health, technology access and environment, which threaten people and society: not profit maximization; financial and economic sustainability; investors get back their investment amount only and they cannot claim dividend; when investment amount is paid back, company profit stays with their company for expansion and improvement; environmentally conscious; workforce get market wage with better working conditions and do it with joy.

The CG Foundation established by the Chaudhary Group to contribute to the society in need of health care and education, and to promote art, culture and sports in Nepal endeavors to conduct all its businesses in a socially and environmentally responsible manner, said Chaudhary after signing the agreement. “It believes in the relationships it builds with its employees, customers, partners and the community at large. CG has been actively investing in the welfare of the community through its various Corporate Social Responsibility (CSR) efforts for over two decades.”

CSR awareness low in Nepal

Understanding among the businesses of Corporate Social Responsibility (CSR) concepts and best practices is quite low in Nepal and it demands a strategy for building awareness among companies, reveals a study conducted by South Asia Forum on Responsible Business's (SAFoRB) partners in Nepal, Environment Camps for Conservation Awareness (ECCA) and South Asia Watch on Trade, Economics and Environment (SAWTEE).

Presenting the synopsis of the study at "SAFoRB Corporate Social Responsibility Roundtable", Mochan Bhattarai of ECCA expressed the hope that SAFoRB would work with ECCA and SAWTEE to develop and deliver CSR awareness programmes suited to Nepal’s context. "Most of the business houses call their philanthropic activities as CSR."

The CSR Roundtable unveiled the recently concluded study on 'The State of Corporate Responsibility in Nepal', which is part of a regional CSR review being undertaken by SAFoRB.

During the programme delegates from Bangladesh, India, Nepal and Pakistan, in their respective country presentations highlighted ongoing work and shared their respective successes and lessons.

Delegates from citizen-sector organisations (CSOs) from SAARC countries, representatives from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the corporate and citizen sectors took part in the roundtable here in the valley oraganised by the SAFoRB through their Nepal members ECCA and SAWTEE.

Samia Ahmed, director at the SAFoRB recounted the organisation’s progress.

“The future of business depends on its ability to respond to demands for ethical and sustainable practices," said Ambreen Waheed, chair of SAFoRB, sharing a regional review of CSR practices and emerging trends. "SAFoRB’s mandate includes providing necessary technical support to its members for building awareness, marshalling cost-effective solutions, and documenting best practices," she said, adding that they will continue to offer the widest possible range of expertise in their support.

Prachet Shrestha, chair of ECCA, concluded with a vote of thanks to the visiting delegates and guests, expressing hope that SAFoRB would continue to expand its membership in Nepal, and play its role in transforming local businesses' attitudes into responsible practices.

SAFoRB — a SAARC-wide membership organisation of citizen sector organizations working to enable civil society to engage with business coherently and effectively — was launched in November 2007. It has its secretariat in Dhaka and 15 national members across the region and regularly organises Roundtables and CSR awareness events in SAARC countries.