Kush Kumar Joshi, the newly elected president of the umbrella organisation of Nepali private sector, has vowed to make the organisation more dynamic and reputed with his new executive committee that has a vibrant entrepreneurs like Suraj Vaidhya as senior vice-president and Krishna Prasad Tamrakar, Pradip Jung Pandey and Bhaskar Rajrajkarnikar as vice-presidents.
"Private sector must build its own image and unity among entrepreneurs as it will help us increase bargaining power. The government will be compelled to listen to us," says the 14th president of Federation of Nepalese Chambers of Commerce (FNCCI), who has always wanted to be an entrepreneur. "Apart from that I wanted to be an engineer," adds modest Joshi.
An average student, Joshi passed his SLC from Saraswoti High school, Chainpur, Sankhuwasabha in second division in 2032 BS. "Though I was just an average student, I had command over Mathemetics and Science," he confesses adding that he did his IE (electrical) from Pulchowk Engineering Campus. He holds an Electrical Engineering diploma from Society of Engineering, UK.
Born in 2017 BS, Joshi started his business of transmission lines and electrification in 2040-41 BS. As an electrical engineer, he started the business of electrical lines."
Ekarat Thailand wanted to expand its business in Nepal at the same time," Joshi, who is leading the 19th executive committee, says. It was 2045 BS that he entered into JV with Ekarat Thailand. It was most probably the first JV in equity participation in Nepal. However, we got licence after 1990 after a long struggle. Because policy doesnot guide us and the individual is more important in our system," says the managing director of Nepal Ekarat Engineering Company Pvt Ltd that manufactures the transformers.
Though, he has become a member of Makwanpur Chamber of Commerce and Industry in 2051, he entered FNCCI in 2054. "FNCCI gave me an exposure and confidence," Joshi, who believes that only industrialisation can develop Nepal, admits.
Private sector as the driver of economy must have one agenda and one platform, he says, adding that business sector should have a combined and one voice for a consensus on economic agenda.He thinks that Nepal is heading towards remittance economy which is short-lived and industrialisation is the only long-term solution.
The current labour unrest is one of the factors that has hit the industrialisation process. "Labour and entrepreneurs, both is responsible for the unrest," he thinks. "The present labour unrest is also due to politicisation. However, we can workout a win-win solution."
"The current trend of foreign employment should be changed and we should create more employment opportunity back home that is possible only with industrialisation," according to him. "For long-term sustainable growth, more employment is needed in the country which is possible only if we have more industries."
The people, who return home with money and skill should get chance to use their expertise and money here in the country," Joshi adds.The entrepreneurs claim that the country is in transition phase and the present priority should be security and dealing with load-shedding. He agrees, "Political stability is the first priority but in the transition phase our concern is security."
"FNCCI will submit its economic agenda to the government after CA polls," he says.
Monday, April 7, 2008
Sunday, April 6, 2008
Ranabhat NAFEA president
The 16th AGM of Nepal Association of Foreign Employment Agencies (NAFEA) on Saturday elected Tilak Bahadur Ranabhat of Noor Opportunities Overseas Pvt Ltd as its president for the next two-year term. Ranabhat got 161 votes against his nearest rival Madan Khadka of who got 131 votes.
Som Lal Bataju of SOS Manpower Service Pvt Ltd was elected first vice-president with 159 votes. Similarly, Bal Bahadur Tamang of Sky Overseas Pvt Ltd was elected the second vice-president and Kamal Dev Malla of Third Eye Overseas Concern Pvt Ltd was elected the third vice-president and Gyan Prasad Gaire of Rara Employment Pvt Ltd was elected the general secretary. The new executive committee of 17 members were elected on Saturday after the AGM on Friday.
Foreign employment — the source of remittance — has been a major job opportunity for Nepali youths due to lack of job opportunities back home. The flow of remittances rose by 18 per cent in Nepal, during the first half of current fiscal year 2007-08 and touched the total amount to Rs 57 billion as of mid-January 2008. Nepal had received Rs 48.26 billion during the same period in the previous fiscal year.
The sector is, however, marred by various issues like lack of professionalism, labour law, security of labours and the manpower agencies' credibility. Ranabhat has vowed to make this profession more dignified.
India is top remittance receiver
India is the top receiver of remittances from abroad in 2007, followed by China and Mexico, according to the World Bank's Migration and Remittances Fact book 2008. The top five recipients of migrant remittances in 2007 were India ($27 billion), China ($25.7 billion), Mexico ($25 billion), the Philippines ($17 billion) and France ($12.5 billion), according to the fact book.
Som Lal Bataju of SOS Manpower Service Pvt Ltd was elected first vice-president with 159 votes. Similarly, Bal Bahadur Tamang of Sky Overseas Pvt Ltd was elected the second vice-president and Kamal Dev Malla of Third Eye Overseas Concern Pvt Ltd was elected the third vice-president and Gyan Prasad Gaire of Rara Employment Pvt Ltd was elected the general secretary. The new executive committee of 17 members were elected on Saturday after the AGM on Friday.
Foreign employment — the source of remittance — has been a major job opportunity for Nepali youths due to lack of job opportunities back home. The flow of remittances rose by 18 per cent in Nepal, during the first half of current fiscal year 2007-08 and touched the total amount to Rs 57 billion as of mid-January 2008. Nepal had received Rs 48.26 billion during the same period in the previous fiscal year.
The sector is, however, marred by various issues like lack of professionalism, labour law, security of labours and the manpower agencies' credibility. Ranabhat has vowed to make this profession more dignified.
India is top remittance receiver
India is the top receiver of remittances from abroad in 2007, followed by China and Mexico, according to the World Bank's Migration and Remittances Fact book 2008. The top five recipients of migrant remittances in 2007 were India ($27 billion), China ($25.7 billion), Mexico ($25 billion), the Philippines ($17 billion) and France ($12.5 billion), according to the fact book.
Floriculture fair lures thousands
The 12th edition of floriculture exhibition, organised by Floriculture Association Nepal (FAN) at Bhrikutimandap, concluded here today.
The last day of the exhibition saw huge number of people thronging the stalls that were decorated with various varieties and colours of flowers.According to Arun Chhetri, general secretary of FAN, more than 30,000 visitors — that is an increment by twenty five per cent in comparison to last year — visited the exhibition. FAN had expected around 25,000 visitors this year. "We are very much excited by the increasing numbers of visitors this year as it surpassed our expectation despite the nearing Constituent Assembly election," he said.
The total transactions — of flowers this year — registered around Rs 9.4 million that is also more than 100 per cent increment in comparison to last year. "Last year FAN recorded a sale of Rs 4.5 million during the exhibition," he informed.
The five-day long exhibition had 60 stalls with more than 450 species of flowers from different nurseries around the country.Till five years ago, Nepal used to import 80-90 per cent of total cut-flowers consumed in the domestic market. But it is completely otherway round today as Nepal's production has already substituted imports substantially, according to FAN.
Although Nepal started exporting floral products just few years back, its reach has gone up from India to USA, Japan, the Netherlands, Norway, Australia, Taiwan, Italy, Germany and some Gulf countries also. But the export is limited to only bulbs, tissue culture plants, cut flowers and ornamental plants.
The last day of the exhibition saw huge number of people thronging the stalls that were decorated with various varieties and colours of flowers.According to Arun Chhetri, general secretary of FAN, more than 30,000 visitors — that is an increment by twenty five per cent in comparison to last year — visited the exhibition. FAN had expected around 25,000 visitors this year. "We are very much excited by the increasing numbers of visitors this year as it surpassed our expectation despite the nearing Constituent Assembly election," he said.
The total transactions — of flowers this year — registered around Rs 9.4 million that is also more than 100 per cent increment in comparison to last year. "Last year FAN recorded a sale of Rs 4.5 million during the exhibition," he informed.
The five-day long exhibition had 60 stalls with more than 450 species of flowers from different nurseries around the country.Till five years ago, Nepal used to import 80-90 per cent of total cut-flowers consumed in the domestic market. But it is completely otherway round today as Nepal's production has already substituted imports substantially, according to FAN.
Although Nepal started exporting floral products just few years back, its reach has gone up from India to USA, Japan, the Netherlands, Norway, Australia, Taiwan, Italy, Germany and some Gulf countries also. But the export is limited to only bulbs, tissue culture plants, cut flowers and ornamental plants.
NT rings throughout Nepal
Its not just coincidence. Its an aggressive planning and expansion.
Nepal telecomm's CDMA phones started ringing throughout the country from Saturday, April 5. And Sugat Ratna Kansakar has been appointed NT's managing director for the third time.
The third time appointed managing director Sugat Ratna Kansakar has very aggressive and ambitious plan for the Nepal Telecomm's (NT) expansion.
"Within two years, we will increase the teledensity of NT to 26 per cent from the present eight per cent," Kansakar said, adding that the total teledensity in Nepal including the private players is, however, at around 12 per cent now.
"There is still enough room — upto 25 to 30 per cent — for expansion," the MD of state-owned telecom giant added. Apart from NT's ambitious plan 'Mission 2010 for increasing its customer base from the current two million to seven million in the next three years, Kansakar highlighted that he has been successful in boosting the confidence of staff despite the robust private players' entry in the domestic market.
NT plans to connect all 75 districts by wireless telephones based on Code Division Multiplexing Access (CDMA) technology and Global System for Mobile Communication (GSM) cellular mobile phones. "As of today, NT has already connected 75 out of all 75 district headquarters with CDMA and 70 districts with GSM cellular mobile phones," Kansakar informed.
NT has already started installation of additional 3.5 million mobiles phones and will increase CDMA lines to two million. It is also planning the expansion of PSTN lines.However, consumers complain of poor quality of NT cellular mobile phones. He agrees but according to him, quality upgradation and expansion plan go hand in hand. "Before eight years, NT had only 18 towers but now, there are 300 towers throughout the country," he said adding that NT is trying to stall more towers to maintain quality with increasing number of consumers."
In next two years, NT will install 18,00 BTS and 400 CDMA towers throughout the country," he added. "Assessing the huge demand of CDMA phones and pre-paid mobile phones, we foresee the need for such a huge expansion plan," Kansakar added.
The additional CDMA lines will be mostly distributed in hilly regions to better serve the rural populace. "According to the Three-Year Interim Plan, NT will provide Internet service to the remotest of the villages," he promised.
While the government's long-term plan for telecom and information technology unveiled in 2002 claimed there would be 15 telephone connections per 100 people by 2014, NT's Mission 2010 has plans for having 20 lines per 100 people within the next three years.
Kansakar further said that NT would soon come up with a plan to provide on-demand connections for GSM pre-paid mobile phones and CDMA Sky phones. "We plan to start on-demand supply of new connections for Kathmandu valley within next two months," he informed.
Nepal telecomm's CDMA phones started ringing throughout the country from Saturday, April 5. And Sugat Ratna Kansakar has been appointed NT's managing director for the third time.
The third time appointed managing director Sugat Ratna Kansakar has very aggressive and ambitious plan for the Nepal Telecomm's (NT) expansion.
"Within two years, we will increase the teledensity of NT to 26 per cent from the present eight per cent," Kansakar said, adding that the total teledensity in Nepal including the private players is, however, at around 12 per cent now.
"There is still enough room — upto 25 to 30 per cent — for expansion," the MD of state-owned telecom giant added. Apart from NT's ambitious plan 'Mission 2010 for increasing its customer base from the current two million to seven million in the next three years, Kansakar highlighted that he has been successful in boosting the confidence of staff despite the robust private players' entry in the domestic market.
NT plans to connect all 75 districts by wireless telephones based on Code Division Multiplexing Access (CDMA) technology and Global System for Mobile Communication (GSM) cellular mobile phones. "As of today, NT has already connected 75 out of all 75 district headquarters with CDMA and 70 districts with GSM cellular mobile phones," Kansakar informed.
NT has already started installation of additional 3.5 million mobiles phones and will increase CDMA lines to two million. It is also planning the expansion of PSTN lines.However, consumers complain of poor quality of NT cellular mobile phones. He agrees but according to him, quality upgradation and expansion plan go hand in hand. "Before eight years, NT had only 18 towers but now, there are 300 towers throughout the country," he said adding that NT is trying to stall more towers to maintain quality with increasing number of consumers."
In next two years, NT will install 18,00 BTS and 400 CDMA towers throughout the country," he added. "Assessing the huge demand of CDMA phones and pre-paid mobile phones, we foresee the need for such a huge expansion plan," Kansakar added.
The additional CDMA lines will be mostly distributed in hilly regions to better serve the rural populace. "According to the Three-Year Interim Plan, NT will provide Internet service to the remotest of the villages," he promised.
While the government's long-term plan for telecom and information technology unveiled in 2002 claimed there would be 15 telephone connections per 100 people by 2014, NT's Mission 2010 has plans for having 20 lines per 100 people within the next three years.
Kansakar further said that NT would soon come up with a plan to provide on-demand connections for GSM pre-paid mobile phones and CDMA Sky phones. "We plan to start on-demand supply of new connections for Kathmandu valley within next two months," he informed.
Friday, April 4, 2008
NT shares to be allotted after polls
Citizen's Investment Trust (CIT), the issue and sales manager of the Nepal Telecomm (NT) shares will allot NT shares' after the Constituent Assembly (CA) polls. Earlier, it had planned to allot the shares on April 6.
"We will allot NT shares after CA polls, most probable on April 17-18," said Anil Dhakal, officer, Corporate Finance and Capital Markets Promotion Division at the CIT."
From the data till today, we have received a maximum bid of Rs 2,500 to the lowest of Rs 600 for a share that was quoted at Rs 600 minimum — after adding Rs 500 premium to the face value of Rs 100 for each unit," he said, adding that among 28,000 sealed envelopes received by the CIT, it has opened around 17,000 envelops so far.
CIT estimates that it has received bidding for around 50 million units. "After the data entry of remaining 11,000 envelopes, we can confirm the real amount and the units," he added.The government had planned to raise at least Rs 9 billion by selling NT's share — 4.5 billion in the first phase and 4.5 billion in the second phase, later. It just falls short of around a billion — if the primary data is to be believed — in its target in the first phase. However, it is expected to collect around three-and-a-half billion rupees only.
Meanwhile, CIT has inked an agreement with Prime Commercial Bank for its Rs 300 million Initial Public Offering (IPO). Prime will be the first commercial bank among the newly opened commercial banks with two billion rupees paid up capital.
"We will allot NT shares after CA polls, most probable on April 17-18," said Anil Dhakal, officer, Corporate Finance and Capital Markets Promotion Division at the CIT."
From the data till today, we have received a maximum bid of Rs 2,500 to the lowest of Rs 600 for a share that was quoted at Rs 600 minimum — after adding Rs 500 premium to the face value of Rs 100 for each unit," he said, adding that among 28,000 sealed envelopes received by the CIT, it has opened around 17,000 envelops so far.
CIT estimates that it has received bidding for around 50 million units. "After the data entry of remaining 11,000 envelopes, we can confirm the real amount and the units," he added.The government had planned to raise at least Rs 9 billion by selling NT's share — 4.5 billion in the first phase and 4.5 billion in the second phase, later. It just falls short of around a billion — if the primary data is to be believed — in its target in the first phase. However, it is expected to collect around three-and-a-half billion rupees only.
Meanwhile, CIT has inked an agreement with Prime Commercial Bank for its Rs 300 million Initial Public Offering (IPO). Prime will be the first commercial bank among the newly opened commercial banks with two billion rupees paid up capital.
Wednesday, April 2, 2008
Nepal to post 3.8pc growth
The Asian Development Bank (ADB) has projected 3.8 per cent Gross Domestic Production (GDP) growth in 2008 and 4.3 per cent in 2009. However, the government had last month projected a revised 4.5 per cent growth from five per cent.
In its annual report — Asian Development Outlook (ADO) — published here in the valley today, ADB stated that the growth rate would be marred by the rising inflation, which it estimates to remain at seven per cent."
The inflation would remain at seven per cent in 2008 and 6.5 per cent in 2009," said Paul J Heytens, country director, Nepal Resident Mission, releasing the report. But the report on the other hand also states the immediate challenges like rising petroleum prices that needs timely adjustment.
However, the price adjustment of petroleum products would again fuel the inflation making not only the goods and commodities more dearer but also beyond the reach of the common people. The power shortage is yet another challenge stated in the report that is not going to be solved immediately.
The ADO highlights the importance of agriculture in economic development in Asia but the agriculture productivity in Nepalhas decelerated to 0.7 per cent from last year's 1.1 per cent. "Second green revolution is needed," Heytens said, giving emphasis on the job creation that has been very slow in Nepal.Though, the overseas employment has emerged as a safety valve, its short term only. For the long-term development, Nepal must have a proper Labour law to lure back the workers home. "Labour Act 2002 is rigid for rationalising business operations and inadequate for protecting worker's interest," he added.
Domestic labour market needs reform for the better relationships between the employees and employers and for the long term development of the country.
In its annual report — Asian Development Outlook (ADO) — published here in the valley today, ADB stated that the growth rate would be marred by the rising inflation, which it estimates to remain at seven per cent."
The inflation would remain at seven per cent in 2008 and 6.5 per cent in 2009," said Paul J Heytens, country director, Nepal Resident Mission, releasing the report. But the report on the other hand also states the immediate challenges like rising petroleum prices that needs timely adjustment.
However, the price adjustment of petroleum products would again fuel the inflation making not only the goods and commodities more dearer but also beyond the reach of the common people. The power shortage is yet another challenge stated in the report that is not going to be solved immediately.
The ADO highlights the importance of agriculture in economic development in Asia but the agriculture productivity in Nepalhas decelerated to 0.7 per cent from last year's 1.1 per cent. "Second green revolution is needed," Heytens said, giving emphasis on the job creation that has been very slow in Nepal.Though, the overseas employment has emerged as a safety valve, its short term only. For the long-term development, Nepal must have a proper Labour law to lure back the workers home. "Labour Act 2002 is rigid for rationalising business operations and inadequate for protecting worker's interest," he added.
Domestic labour market needs reform for the better relationships between the employees and employers and for the long term development of the country.
Tuesday, April 1, 2008
Sebon uncovers IPO scam
Investors have been, for long, complaining of foul play in the capital market. But for the first time, Securities Board of Nepal (Sebon) has uncovered what appears to be a huge financial scam in the capital market that might be only the tip of an iceburg."
Sebon has stopped the allotment process of Employment Promotion and Development Bank's (EPDB) shares until its investigation completes. It has also written to Ace Development Bank, the issue manager of EPDB's Initial Public Offerings (IPOs), to stop the process of allotment," said Dr Chiranjivi Nepal, chairman of Sebon, the regulatory authority of the capital market."
After we got complaints of foul play in IPOs, we randomly checked the collection centres," he informed, adding that the inspection team then took control of the suspected forms. "Sebon inspection team has randomly taken control of a couple hundreds of forms that are being suspected of fraudulent," said P N Poudyal, director, Market Regulation Department of the Sebon."
Such forms will be cancelled which is necessary to clean up the market," said Neeraj Giri, director at the Sebon, without elaborating on what action the regulatory authority is going to take.
The EPDB had received 5,00,000 applications amounting to over eight billion rupees that it claimed to be oversubscribed by 66 per cent. It had floated shares worth Rs 128 million for public.Such incidents call for an urgency of new IPO regulation that is in offing and is expected to control such foul play.
Sebon has stopped the allotment process of Employment Promotion and Development Bank's (EPDB) shares until its investigation completes. It has also written to Ace Development Bank, the issue manager of EPDB's Initial Public Offerings (IPOs), to stop the process of allotment," said Dr Chiranjivi Nepal, chairman of Sebon, the regulatory authority of the capital market."
After we got complaints of foul play in IPOs, we randomly checked the collection centres," he informed, adding that the inspection team then took control of the suspected forms. "Sebon inspection team has randomly taken control of a couple hundreds of forms that are being suspected of fraudulent," said P N Poudyal, director, Market Regulation Department of the Sebon."
Such forms will be cancelled which is necessary to clean up the market," said Neeraj Giri, director at the Sebon, without elaborating on what action the regulatory authority is going to take.
The EPDB had received 5,00,000 applications amounting to over eight billion rupees that it claimed to be oversubscribed by 66 per cent. It had floated shares worth Rs 128 million for public.Such incidents call for an urgency of new IPO regulation that is in offing and is expected to control such foul play.
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