DAILY POWER CUTREDUCED TO TWO HOURS;NO CUT ONE DAY A WEEK

LOAD-SHEDDING RELAXED FURTHER

Kathmandu, 21 June: Load-shedding will be cut further from four to two hours every day from Wednesday, Nepal Electricity Authority (NEA) said.
There will be no power cut one day a week.
Power will be cut to industrial areas for four hours every day.
The power company didn’t specify reasons for the relaxation.
But the monsoon has broken increasing water flow in rivers; a campaign is ongoing to curb power theft and demand for electricity drops in summer.
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BROTHER, SISTER-IN-LAW MURDERED IN SHARLAHI

Kathmandu, 21 June : Pradip Majhi killed his brother and sister-in-law in a fit of rage over a property row at a village in Sarlahi Tuesday.
He later committed suicide by swallowing poision, first reports said.
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DETAILS OF SLC 2067 BS RESULTS





Kathmandu, June 20 - The Office of the Controller of Examinations (OCE), Sanothimi, Monday published the results of the School Leaving Certificate (SLC) exams of the year 2067 (2010/11).
According to Office of the Controller of Examinations Sanothimi, this year 55.5 percent regular students passed the exams.
The pass per cent of this year was less than the previous year.
Similarly, among those who appeared in the exams as exempted students, only17.30 percent got through.
Out of total 454,022 regular examinees, 220,766 have passed the SLC exams, which is less by 8.81 percent compared to last year’s SLC results.
Among them, 20,111 examinees passed with distinction, 82,619 in the first division, 107,095 in the second and 8,241 in the third divisions.
Similarly, 9,733 exempted students passed the exams. The exams were held in March.
Similarly 17, 740 students passed by getting grace marks and 144, 000 students would be allowed to participate in the complementary examinations which will begin from 8 August.
The SLC exam is considered as the "iron gate" for entering the higher education in Nepal.
The students can see their SLC results at www.slcresult.soce.gov.np, www.slc.ntc.net.np, www.moe.gov.np and www.doe.gov.np.
Likewise, the results could also be known through the SMS service of various mobiles and even by dialing at 1400 of the Nepal Telecom.
Taking about the decrease in the pass percentage this year, Shanker Pandey, secretary at the Ministry of Education, said that the pass percent might drop as the exams were conducted in a more disciplined manner this year.
He thanked all guardians and others for supporting to hold the exams in a disciplined way.
Surya Prasad Gautam, controller of OCE, said that the students failed due to lack of hard labour and urged the students to be more serious about their study.
The students who do not satisfy with their marks could submit their application at OCE within 15 days for re-totaling.
The OCE said that it would make the results of re-totaling public before holding the complementary exams.
According to OCE, the students will get their marks sheets within three weeks including their original certificates, The Rising Nepal reports.
OTHER DETAILS
Maoist lawmaker Gita Thagunna, who appeared the examination from a school in her district, Darchula, secured first division.


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US LESBIAN COUPLE MARRY AT DHAKSHIN HINDU TEMPLE NEPALI STYLE
Kathmandu, 21 June: It was a monsoon wedding indeed, albeit with a whirl.

An American professor and her compatriot lawyer today tied the knot at Dakshin Kali temple as per Hindu rituals, making it arguably the first lesbian marriage in Asia, The Himalayan Times reports.

It was one proud moment once again for Sunil Babu Panta, Nepal’s only gay lawmaker, who had taken the charge of helping Courtney Mitchell (41) and Sarah Welton (48) get spliced today.

Up to 60 gay rights activists and other onlookers on the temple premises cheered as a Hindu priest chanted final mantras to declare the two women a couple. Courtney was dressed in Nepali Daura Suruwal and Topi as groom and Sarah was clad in a red sari, drawing the attention of quite a many around and making them guess whether a film shooting was going on.‘Which film is being shot?’ or ‘What a marriage between woman and woman!’ were some of the comments with which the surrounding was abuzz.

Courtney, who had earlier lived in Nepal for six years, said they chose Nepal for the marriage and hoped their country would recognise their nuptial as Nepal does. Same-sex marriage is not recognised in her homeland Colorado. The couple later threw a party at a nearby resort.

Panta and his Blue Diamond Society, an organisation advocating gay and lesbian rights, had earlier hosted a gay wedding for British citizen Sanjay Shah and his Indian partner, who had refused to be identified.
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ANDHARA MINISTER, FAMILY STRANDED IN REMORE DURING PILGRIMAGE TOUR OF TIBET

Kathmandu, 21 June: Housing Minister of Andhra Pradesh of India Kanna Lakshminarayana and his 13 associates were stranded in Simikot of Humla after a chopper that was supposed to airlift the team to Nepalgunj could not fly due to unfavourable weather conditions, The Himalayan Times reports from Nepalgunj
Minister Lakshminarayana, his sons Nagaraju and Phaneendra, their families and others were on a pilgrimage to Mansarovar and Kailash Parikrama. The minister and his team had left for Mansarovar on June 11. Lakshminarayana was scheduled to catch a Yeti Airlin es flight to Kathmandu, had he been airlifted to Nepalgunj on Monday. Kathmandu-based Heritage Tours and Travels had taken the responsibility for their visit to Mansarovar. Sources at the Civil Aviation Authority, Nepalgunj, said the chopper could not fly due to adverse weather conditions. Narendra Bhatta, proprietor, Heritage Travels and Tours, said the minister and his team have been put at Simikot-based Sun Valley Resort. “A chopper has been booked. The minister’s team will return to Nepalgunj as soon as the weather improves on Tuesday,” said Bhatta, adding there was no need to worry, as the minister and his team are out of danger.
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MASSIVE CAPITAL OUTFLIGHT FROM NEPAL

Kathmandu, 21 June::Amid persistent reports of large scale capital flight from Nepal, a recently-released UN report has placed the country in the sixth position among Least Developed Countries (LDCs) exporting funds illegally, Mukul Humagain reports iin The Kathmandu Post.

A report commissioned by the United Nations Development Programme (UNDP) entitled “Illicit Financial Flows from the Least Developed Countries: 1990-2008” has for the first time recorded the extent of capital flight and exposed the gaping floodgates in the Nepali financial system. It also questions what kind of preventive measures officials will now take to stem the outflow.

According to the report, US$ 9.1 billion (Rs 657.93 billion) in capital was siphoned out of the country during the period 1990-2008. On an average, US$ 480.4 million (Rs 34.73 billion) went out of the country annually.

Trade mis-pricing accounts for the bulk (65-70 percent) of illicit outflows from the LDCs, and the propensity for mis-pricing has increased along with increasing external trade. This holds true for Nepal as well.

Former Finance Secretary Rameshwore Khanal attributes under-invoicing as the leading mode of capital flight from Nepal. “Some 70 percent of the capital outflow is through under-invoicing while 20-30 percent is corruption and kickback money,” he said.

The illicit outward flood of capital from Nepal has increased to such an extent that it has outpaced the official development assistance (ODA). For every dollar received in ODA, 1.1 dollar exits Nepal in illicit flow.

The outflow during 1990-2008 amounting to Rs 657.93 billion is equivalent to 8.07 percent of Nepal’s Gross Domestic Product (GDP) for the period.

Rampant under-invoicing (declaring a lower price than the actual price) of goods at customs points has been a major challenge for Nepali tax authorities.

The main reason for the much talked about value added tax (VAT) evasion probe is under-invoicing.

Tax authorities say under-invoicing is rampant in the country’s automobile trade. “The same can be said about the China trade which is totally based on the hundi system,” said a leading banker.

So how does Nepali money flow out of the country? It is believed that the money goes through informal channels, ie, either hundi or hawala.

However, when the money enters foreign banks, it goes through formal channels, said a banker. According to sources, the amount transferred through under-invoicing generally ends up in countries like the US, South Korea, China and Australia.

Yet, there are other ways to send money abroad. Commissions associated with multi-million-dollar contracts of government agencies like the Nepal Electricity Authority, Nepal Airlines Corporation and others are settled abroad. “The commission is generally deposited in offshore accounts,” said one banker.

The UNDP report shows capital flight till 2008. It is believed that outflow of capital has intensified in the last two years. Two instances of last year verify this trend. The Finance Ministry had found that over US$ 100 million was siphoned from Nepal in the name of wool import to various banks in Hong Kong under the credit import facility.

In another instance, the ministry found that Rs 60 million was refunded under the pretext of vegetable ghee export from Rasuwagadhi Customs. As per the provision, VAT paid by a trader while importing or purchasing raw materials is refunded after the goods manufactured from those raw materials have been exported.

However, some traders forged bills for imported raw materials and customs clearance documents for exports and stole huge amounts of money from the government treasury without any actual exports having taken place.
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INDUSTRYMINISTRY SUGGESTS DRAFT REVIEW OF PROPOSED INVESTMENT GREEMENT WITH INDIA

Kathmandu, 21 June 21: The government has returned the draft of Nepal-Indian Bilateral Investment Promotion and Protection Agreement (BIPA) back to the Ministry of Industry (MoI), instructing it to carry out further negotiations on controversial provisions that, among others, make the state liable to compensate the Indian investors in case they suffered ´non-commercial´ loss. Republica reports.

Interestingly, Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari had pressed the government to endorse the bilateral agreement as it is last week. “He (Adhikary) pushed for the endorsement of the agreement because he wanted to get it signed during Indian Finance Minister Pranab Mukharjee´s Nepal visit, which has now been cancelled,” said a highly placed source.
However, Adhikary´s efforts had failed after top officials managed to convince Prime Minister Jhalanath Khanal about the long-term liability and negative impact that Nepal could suffer if BIPA was signed as it is.

Concerned officials have been protesting the inclusion of provisions that threatened to subject unnecessary liability on the state. Despite all this, the Ministry of Industry had forwarded the draft agreement to the Cabinet for endorsement some one-and-a-half years ago on personal insistence of Minister Mahendra Yadav.

“We will have to set aside huge money every year to compensate the Indian joint venture companies that may suffer non-commercial loss -- damage or loss inflicted due to banda or strikes or other abnormal situation. It would bring long term economic impact to the country,” said the source.

However, the Financial Committee of the Cabinet last week assessed that the proposed agreement needs further negotiations and subsequently sent back the draft of BIPA to MoI.

India has been pressing for the signing of BIPA for the last one decade, stating that Indian multinationals here are facing growing insecurity due to labor unrest and frequent strikes by different groups. BIPA has always been one of the major agendas during the each bilateral trade talks between two countries in the past.
Nepal has signed the BIPA with France, Germany, Britain, Mauritius, Qatar and Finland, which are not making significant investment in Nepal. BIPA with India, Canada and UAE are in the pipeline.

Nepal has been deferring the signing of the BIPA ever since India proposed it in 1998 due to its far reaching implication, leading to rounds of failed talks on it in the past as both the countries have already exchange the draft of the pact. India had first made the proposal for the BIPA when the Maoist cadres attacked Indian multinational Colgate Palmolive during Maoist insurgency in Nepal. Indian officials are insisting that Indian investment in Nepal will not be secure unless the pact is signed.

“Though provision of World Trade Organization requires national treatment to foreign companies, risk of bearing huge compensation to the non-commercial loss has been deterring us to sign the BIPA,” said the source.

Responding to the Indian proposal, the government had principally agreed to sign the BIPA for the protection of Indian investment in Nepal in 2001. As per the BIPA, Nepal has to treat Indian companies as the national companies, guarantee not to nationalize them, give compensation in case of nationalization of those companies and make legal environment to seek compensation for non-commercial losses.
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