Petroleum dealers threaten to stop supplying fuel

The Valleyites could again face the shortage of petroleum products' supply from July 4 due to the row between petroleum distributors and Nepal Oil Corporation (NOC) over loss compensation.
The Bagmati Petroleum Dealers’ Association – an association of around 300 fuel stations in Kathmandu Valley and neighbouring districts Kavre, Sindhupalchowk, Nuwakot, Rasuwa and Dolakha – today announced that it would stop purchasing petrol from NOC from July 4, against the Essential Commodities Control (Authorisation) Act.
Though the Essential Commodities Control (Authorisation) Act has listed petroleum products as essential commodity, the dealers have been repeatedly violating the law by protests and strikes in supply of essential commodities.
"We will not sell petrol from our member fuel stations in Kathmandu Valley and neighbouring districts from July 4,” said president of Bagmati Petroleum Dealers’ Association Achyut Bahadur Khadka.
Fuel stations have been facing loss of around 99 litres on the purchase of 4,000-litre tanker from NOC after it started supplying Euro IV standard petrol from the first week of April, he said, adding that NOC allows deduction of only 35 litres to make up for the loss for every 4,000 litres of petrol and 26 litres deduction for the same volume of diesel. "We have been facing higher loss than what NOC permits us to make up as loss."
NOC pays compensation for 35 liters per chamber as technical loss. But dealers say they have been seeing losses of up to 99 liters per chamber.
Earlier in April, a joint study team of NOC, Nepal Petroleum Dealers Association, and Nepal Bureau of Standard and Metrology had found that tankers were supplying 84 to 99 liters less fuel per chamber. Petroleum tankers have four to five such chambers. Such huge losses were found in tankers that ferried fuel from NOC' Thankot depot to different fuel stations.
Bagmati Petroleum Dealers’ Association has been – for the last two months – demanding that NOC raise the loss quantum. The dispute between the petroleum distributors and NOC has now come to the fore with dealers announcing they will stop purchasing and selling from July 4.
"Dealers are planning to stop distribution to get their demands fulfilled," said spokesperson of the NOC Sitaram Pokharel. "It will hurt the general public," he said, adding that the NOC has raised the loss quantity from 22 litres to 35 on supply of every 4,000 litres of petrol and from 17 to 26 litres for diesel from last August 1. NOC has urged dealers to check the quantity while loading from the depot.
The NOC has, meanwhile, formed a panel led by director general of Nepal Bureau of Standards and Metrology Bishwo Babu Pudasaini to study the loss to resolve the crisis with dealers.
"NOC may review the loss make-up facility only after the panel submits a report,” Pokharel said, adding that the dealers have, however, alleged that the panel will deliberately delay submission of the report.

Earthquake survivors allotted 1,500 cab licences

The government has distributed some 1 ,500 licences for operating taxicab – to the survivors of April 2015 Gorkha earthquake – through lotteries in the last three days till today.
The Department of Transportation Management has in the first phase, on Wednesday, allotted licences to 491 quake survivors from Kavrepalanchwok, Nuwakot and Ramechhap districts. Likewise, 513 quake survivors from Dolakha, Sindhuli and Sindupalchok districts received permits on Thursday, while 496 taxi operating permits were distributed to survivors from Kathmandu, Lalitpur, Bhaktapur, Makawanpur, Dhading, Okhaldhunga, Gorkha and Rasuwa districts today.
The departments' director general Rup Narayan Bhattarai said that the lottery was conducted in transparent manner. "The event was live broadcast through television and radio."
However, the Kathmandu Metropolitan City (KMC) is not letting the new taxicab to ply on Kathmandu roads as the metropolis is over crowded also due to lack of expansion of road network.
"The KMC doesn't have the right to make decision in this regard," Bhattarai said, adding that the KMC has sent a letter to the department stating that they would request authorities of respective districts to allow operating taxis.
But the other districts, unlike Kathmandu, have not halted the permits of taxicab.
According to the department, there are currently 8,500 taxis – including the 2,850 new taxi cabs registered last year – on the streets of the Kathmandu Valley. There were 5,650 taxis in the capital as of mid-2015. The government had opened registrations for new taxi cabs in 2015 for the first time in 15 years.
Among the 2,850 new taxi permits issued last year, some 1,850 permits were provided to regular applicants, while 500 permits were set aside for earthquake survivors and affected families. Remaining 500 permits were allotted to companies willing to operate deluxe and super deluxe taxis.
According to the department, there were some 7,500 taxis in Kathmandu in 2000 when the valley’s population was estimated at 1.3 million. However, the valley needs to add more public vehicles as there are only 900,000 private and public vehicles including two-wheelers for around 8 million people in Kathmandu at present.

Nepal ranks 91st in world social progress index

Nepal has made marginal improvement in the Social Progress Index (SPI) this year from last year. Nepal has improved its score to 60.08 (91st) this year from 57.4 (95th) among 133 countries in 2016, according to The Social Progress Index-2017.
"Nepal has been ranked 91st – among 128 countries that covers 98 per cent of the world’s population – in the world in social progress this year," the index published by Social Progress Imperative – a non-profit organisation based in Washington – reported. It has also classified Nepal as one of the ‘Lower Middle Social Progress’ countries with a score of 60.08 on a scale of 100 on SPI.
In South Asia, Nepal is second after Sri Lanka (73rd) while India has been ranked 93rd, Bangladesh (97th), Pakistan (105th) and Afghanistan (127th). But Bhutan and Maldives were not included in the SPI survey.
The index puts Denmark on top with a score of 90.57 and US in the 18th and China 83rd position. ‘Very Low Social Progress’ countries include Yemen with a score of 43.46, Guinea (43.40), Niger (42.97), Angola (40.73), Chad (35.69), Afghanistan (35.66) and Central African Republic (28.38), according to the report.
"Many Lower Middle Social Progress Tier countries are performing strongly compared to countries with similar income, including Nepal and Senegal, which have made great strides in governance and health,” the report stated adding that seven out of 25 countries in the Lower Middle Social Progress Tier performed best compared to others. "Nepal has low absolute performance (91st) but has performed strongly versus similar low-income peers."
Since the establishment of a multiparty democracy in the 1990s, Nepal has made great strides in health and education. Investments, especially in the health sector, accompanied by holistic reforms and decentralisation that helped mobilise community health volunteers to remote areas, have significantly improved health infrastructure.
"For example, Nepal facilitated improvements in antenatal care with incentives for pregnant mothers and institutional delivery," the report mentioned adding, "Access to piped water and sanitation also increased. Life expectancy has risen 12.1 years since 1990, one of the largest gains worldwide."
The lowest performing regions on ‘Tolerance and Inclusion’, South Asia and Eastern Africa, reveal contradictory trends. On average, South Asia has the lowest score (36.67) of any sub-region, yet Bangladesh and Nepal are among the most improved countries. Both showed strong improvements on tolerance for homosexuality. Nepal improved from 56 per cent of the population stating the country is a good place for gay and lesbian people to 83 per cent.
The 2017 Social Progress Index is an aggregate of measures 50 indicators including water and sanitation, advanced education, nutrition, shelter, personal safety, personal freedom, tolerance and inclusion, personal rights, health and wellness, access to ICT, ecosystem sustainability and access to basic knowledge.

World Bank to provide Rs 19 billion loan

The World Bank (WB) has agreed to provide Nepal government with Rs 19 billion loan assistance for increasing the quality of education.
Finance secretary Shanta Raj Subedi and World Bank Nepal country manager Takuya Kamata signed the agreement today at the ministry.
The loan that requires five year’s time to pay off would be used for increasing educational quality, expanding justifiable access to primary and secondary education, improving teaching and learning activities and building strong and reformed educational system, a press statement issued by the Finance Ministry stated.
The initiative would contribute to the school sector reform plan of the government, said Kamata after the signing ceremony. He also said around seven million students and 180,000 teachers would benefit from the programme.
Likewise, Subedi, on the occasion, urged the Education Ministry and its subordinate bodies to be serious and work hard to implement the programme. He also requested the World Bank to provide additional support to the government’s initiatives to ensure sustainable social service, manage human resources and build development infrastructure of the country.

Government recalls 6 Patanjali products

On the International Yoga day, the government has recalled six products of Yoga Guru Baba Ramdev's Patanjali pharmacy as they failed microbial tests.
The Department of Drug Administration (DDA) – in a public notice – said six Ayurvedic medical products manufactured by Divya Pharmacy in Uttarakhand, were found to be substandard during inspections at various outlets and tests on specimens. The drug authority has recalled six products, Triphala Churna, Adviya Churna and Aswangandha. Amla Churna, Divya Divya Gashar Churna, Bahuchi Churna. All these Patanjali products were manufactured at Divya Pharmacy in Uttarakhand.
"The batch of medicine which was inspected by the department are found to have contained pathogenic bacteria," an official of the Department said, urging the stakeholders not to sell or prescribe the use of these six medicines with immediate effect.
The drug authority has asked the Patanjali Ayurveda unit in Nepal to inform them about steps being taken to recall the products in line with medicine laws.
Earlier, Indian Army has also stopped sale of Patanjali's Amla juice across its canteens, Canteen Stores Department, after it received negative test report on samples it had sent to Food Safety Standards Authority of India laboratory. The 'unsafe' Amla juice exposes defence personnel to certain health risks, according to the reports
Also in 2016, a PIL in Gujarat High Court had sought ban on the sale of shilajeet – a product used to enhance sexual prowess – by Yoga guru Baba Ramdev's Patanjali brand of medicines. The PIL was filed on the ground that selling a product like shilajeet under the brand name of Patanjali, who is a very revered saint for the Hindus, hurts religious sentiments. However, the PIL was withdrawn later.
According to Patanjali Ayurveda Kendra in Kathmandu – the sole distributor of the products in Nepal – the medicines have not been banned but restriction was imposed on the sale and use of certain batch of the medicines that failed lab test. "We will immediately recall the medicines, if found substandard," an official at the Patanjali Ayurveda Kendra said.

Nepal asks China to lower air fare

Nepal has requested China to lower the airfare between China and Nepal.
During the 11th meeting of Joint Consultation Mechanism between Nepal and China held here today in Kathmandu, Nepal has requested to lower the airfare to promote the bilateral trade and tourism.
Both sides, on the occasion, discussed the ways to further enhance coordination and facilitation for the promotion of Nepal’s tourism prospects in China in the context of the Chinese government’s announcement of the year 2017 as ‘Nepal’s Tourism Promotion Year in China’.
The Nepali side also expressed hope that cross-border connectivity, infrastructure development, diversification of Nepal’s trade, promotion of investment and tourism would receive priority in the implementation of the MoU on cooperation under the Belt and Road Initiative (BRI) signed by the two sides on May 12.
The Nepali side also emphasised the need of early resumption of Tatopani-Zhangmu border point. China has agreed to reopen the Tatopani customs point that remains closed since April 2015 when the earthquakes heavily damaged infrastructures on both sides of Nepal-China border. The Chinese side has assured Nepal that China is committed to resuming the operation of the Tatopani customs point once the reconstruction of the damaged buildings and road and protection works of the area are completed. The Chinese delegation also informed the Nepali side that they are investing some Rs 2 billion for the protection and reconstruction works in the area.
Foreign Secretary Shanker Das Bairagi led the 21-member Nepali delegation while assistant minister of the Ministry of Foreign Affairs Kong Xuanyou led the 12-member Chinese delegation for the meeting that assessed the progress made in the implementation of agreements and Memorandum of Understandings (MoUs) reached between the two sides in the past. They also expressed commitment to further promote cooperation in mutually agreed areas. Both sides also agreed to work in realisation of economic opportunities available for mutual benefits.
The visiting assistant minister is scheduled to pay courtesy calls on Prime Minister Sher Bahadur Deuba and Deputy Prime Minister and Minister for Foreign Affairs Krishna Bahadur Mahara tomorrow.
He will also visit the reconstruction projects in Kathmandu being implemented under the Chinese grant assistance.
Kong and his delegation arrived Kathmandu on June 19 to attend the meeting and will depart for Beijing on June 22.
The Joint Consultation Mechanism was set up in 1996 as a platform for discussing the matters of mutual concerns and cooperation at the senior officials’ level between the Foreign Ministries of Nepal and China.
During their visits to China, the then prime ministers K P Sharma Oli and Pushpa Kamal Dahal – both – had asked the Chinese side to reopen the Tatopani-Zhangmu border point. Nepal has also been raising this issue in all other meetings with the Chinese side.

IFC, FMO Invest in hospitality

The International Finance Corporation (IFC) – a member of the World Bank Group – has invested $2.75 million in Nepal Hospitality and Hotel Pvt Ltd to develop the new 3-star hotel, Fairfield Marriott at Thamel in Kathmandu. In addition to its own investment, IFC has mobilised a further $2.75 million investment from FMO, the Netherlands-based development bank. The 115-room hotel is operated by international chain Marriott under its Fairfield brand, and is the first internationally-branded, professionally-managed mid-market hotel in Nepal.

This initiative of IFC and FMO will help in building skills of those employed in the sector and contribute to the development of local supply chains, and thereby support significant employment in ancillary industries as well, according to IFC.
International-standard hotels like the Fairfield Marriot property help emerging markets like Nepal attract business and leisure travelers, managing director of Nepal Hospitality and Hotel Pvt Ltd Gaurav Agrawal, said, adding that investments that support vital economic industries like tourism will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to travellers’ needs.
The Fairfield Marriott Hotel will help increase Nepal’s capacity in the mid-market hotel segment, create jobs, and promote energy-efficient hotel design, and is expected to stimulate tourism and support the economy. It will also help build skills of those employed in the sector and contribute to the development of local supply chains. State of the art construction principles have been implemented by adopting green building design in order to increase energy and water-efficiency measures, which will serve as a model for replication across the industry.
International-standard hotel like the Fairfield Marriott property help emerging markets like Nepal attract business and leisure travelers. Investments that support vital economic industries like tourism, will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to traveler’s needs.
According to IFC, it remains committed to promote such development in Nepal as the country and industry recover from the impacts of the 2015 earthquake. IFC’s tourism investments promote development of critical infrastructure in places where there is often a shortage and send a positive signal to other investors.
IFC also pledged to invest in hotels and tourism especially in low-income and fragile conflict-affected countries like Nepal, which contributes in strengthening their economy.