Nepal Today

Saturday, September 3, 2011

CABINET EXPANSION LIKELY SUNDAY

BABURAM BHATTARAI CABINET MAY BE EXPANDED SUNDAY; CP GAJUREL DEPUTY PRIME MINISTER

Kathmandu, 4 Sept.: Prime Minister Dr.Baburam Bhattarai is expected to expand his cabinet Sunday seven days after being installed Nepal’s 35th prime minister.
Five constituents of Madeshbadi parties also sorted differences on sharing of ministries and leaders of its government teams Saturday enabling cabinet expansion.
Maoist Spokesman Dinanath Sharma said the cabinet is being expanded with a small team of Maoists
Jayaprakash Prasad Gupta will lead the MJFN (Republican), Hridesh Tripathi TMLP, Mahenda Yadav TMLP-Nepal and Chairman Rajendra Mohoto of NSP will head their parties’ teams in government.
Gupta is also chairman of MJFN (Republican)/
Bijaya Kumar Garchedhar, Chairman of MJFL is already in government as deputy prime minister and home minister in the Bhattarai government
The government will be expanded later Sunday or one week after a small cabinet assumed office if intra-party Maoist differences don’t interfere
The front of five Madeshbadi parties will deliver a.list of its government team to PM Bhattarai for installation Sunday following settlement of differences on sharing ministries.
Maoist Chairman Prachanda has resolved differences between three factions in the party on sharing of responsibilities in the cabinet, Ujir Magar reports in Nagarik
Secretary CP Gajurel is being appointed deputy prime minister and foreign minister.
Barshaman Pun will takeover as finance minister and another secretary Post Bahadur Bogati is being nominated energy minister.
Top Bahadur Rayamajhi, Janardhan Sharma and Pashu Shah are taking over as local tourism and land reforms ministers respectively.
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MAOIST STANDING COMMITTEE MEET RESUMES SUNDAY

Kathmandu, 4 Sept.: Maoist standing committee will first meet Sunday after a meeting of office bearers after Saturday’s inconclusive committee meeting
A meeting of office bearers has been convened following differences in the standing committee.
“The meeting will be conclusive Sunday,” Spokesman Dinanath Sharma said.
Differences have cropped up in the policy making body on handover of keys and containers with Maoist weapons of the 10-year insurgency to a special committee of government headed ex-officio by the prime minister.
“We have four commanders Chain of command still stands. There are no differences [in PLA],’” Janardhan Sharma told Radio Nepal Sunday on key handover.
‘Very difficult situation has been created,” Sharma, who is a PLA leader, added. and said a decision of handover of keys and containers 23 August was unanimous.
“The keys are being handed over tour own government,” Sharma said implying the government is headed by first Vice-chairman Dr. Baburam Bhattarai.
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18 GOVT. VEHICLES INTERCEPTED

Kathmandu, 4 Sept.: Eighteen government vehicles operating Saturday on streets without permits were intercepted by police.
Official permits are required to run government vehicles on public holidays.
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NRB RECOMMENDS CUT IN INTEREST RATE



Kathmandu, 4 Sept : As commercial banks recorded dramatic improvement in liquidity amid rapid influx of deposits, Nepal Rastra Bank (NRB) has advised them to continue providing attractive returns to depositors but cut the lending rates, Ajit Tiwari reports from Biratnagar in.Republica.
According to NRB, the commercial banks at present have liquidity surplus of Rs 30 billion. “We feel they must now start attracting borrowers apart from ensuring that deposits growth rate is maintained,” said NRB Governor Dr Yubaraj Khatiwada.
Addressing leading industrialists and traders of the eastern region, Governor Khatiwada on Saturday said he has personally appealed the bankers to support the industries and cut the lending rates.
“Commercial banks have adequate liquidity at present to lend. I have personally appealed the bankers to lend in productive sectors at low interest rates,” said Dr Khatiwada.
Entrepreneurs at the program were complaining against high lending rates charged by the banks and financial institutions (BFIs) and asked the Governor to take steps to lower the rates.
Dr Khatiwada also appealed the general public to build the habit of saving their income, citing that it will eventually help them by not just ensuring good returns but also by lowering inflation.
“And banks too must not focus on easy profit making sectors only. They must lower the rates and channel their investments in the productive sector," he stressed. “This is necessary to drive the country to high growth trajectory,” he added.
While informing the business community that the central bank´s foreign currency reserve has improved in recent months, Dr Khatiwada also noted that NRB has adequate holding of Indian currency as well.
He also said that the central bank was keeping an eye on the financial system, monitoring their operations and activities closely.
Referring to actions taken by the central bank against promoters and top managers of various financial institutions, Governor Khatiwada stated that NRB would not let promoters and managers involved in irregularities and flouting corporate governance norms to go scot free.
Dr Khatiwada asked the private sector to invest in long-term ventures and social sector, refraining from investing in short-term projects.
“There are numerous areas like physical infrastructure, hydropower and agro-processing industries where the private sector can invest with long-term business prospect and also help the economy grow at a rapid pace,” he said, acknowledging the role of the private sector in the country´s advancement.
President of Eastern Regional Chamber of Commerce and Industry Kishore Pradhan said the new government´s decision to promote domestic industries has rejuvenated the private sector. “Use of vehicles produced by Hulas Motors by the Prime Minister has motivated the business community,” he stated.
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LACK OF FUNDS , OFFICIALS WITH EXPERTISE HIT RAILWAY PLANS

Kathmandu, 4 Sept : Budget crunch coupled with lack of officials have brought the implementation of much-touted railway development programs, including study for two new railway lines and acquisition of land for extending two railway tracks in the southern bordering areas, to a standstill, Prabhakar Ghimere reports in Republica..

To implement these programs, the Department of Railway (DoR) had demanded around Rs 7 billion from the government for the current fiscal year. With the money, the department had said it would lay railway tracks in Biratnagar, linking it with the Indian railway network, extend the tracks of Jainagar-Janakpur railway up to Bardibas, complete pre-feasibility study of Metro and monorail for Kathmandu and develop detail project report (DPR) for the East-West Electrical Highway.
However, contrary to the euphoria amid which the department was established, the government allocated just Rs Rs 140 million to the department this year.
Worse still, the Ministry of Physical Planning and Works (MoPPW) - the line ministry overseeing the department - will soon be without senior officials who are considered well-versed in railway matters. Its Secretary Purna Kadaria is on leave currently and will also retire this month. The then joint-secretary Tulsi Prasad Sitaula, who had deep knowledge about the railways, has been transferred as the Regional Administrator of the Western Development Region last month.
Ram Kumar Lamsal, director general of DoR, told Republica that the budget allocated only Rs 40 million for the acquisition of land for the proposed Biratnagar-Jogbani railway line and Jainagar-Janakpur-Bardibas railways. Similarly, Rs 100 million has been set aside for the feasibility study of metro rail and DPR of East-West Railway.
“We had demanded Rs 800 million for acquisition of land for Biratnagar-Jogbani railway, and Jainagar-Janakpur-Bardibas railway, but the government has pledged us only Rs 40 million. How can we implement the programs with such a meager amount,” Lamsal asked.
To implement these projects, the department has identified it would need to acquire 298 bighas (about 202 hectares) along Jogbani-Biratnagar route and 112 bighas (about 76 Ha) along Jainagar-Janakpur- Bardibas route. However, as the government has not acquired the land, India that committed to support the developing of DPRs has delayed the DPRs, which are needed to implement the projects.
Given the situation, DoR has requested the Ministry of Finance (MoF) to provide it Rs 1.5 billion so that it can complete at least the land acquisition. However, MoF has not responded so far.
"We have heard MoF officials are ready to transfer Rs 350 million allocated for the Kathmandu-Tarai fasttrack project to the railway department as the project has not been able to use the money since last year. But we are yet to get formal confirmation about it," said a source.
Nepal had geared up for cross-border railway network mainly after India in 2005 agreed to support Nepal for the construction of railway links between Kakarvitta and New Jalpaigudi, Biratnagar and Jogbani, Nepalgunj and Nepalgunj Road, Bhairahawa and Nautanawa, and Jainagar-Janakpur and Bardibas. The agreement was signed with a motive to boost bilateral trade.
As a part of this plan, the two sides had again signed an agreement in February last year to first complete the construction of Jogbani-Biratnagar and Jainagar-Janakpur-Bijalpura-Bardibas railway network. The cost for these two lines was estimated at Rs 2.08 billion and Rs 5.69 billion respectively.
Under the agreement, India has promised to conduct DPR of the projects and support the construction works while Nepal had agreed to acquire land needed for the construction. If Nepal acquired the land, India had promised it would provide Rs 600 million this year to start construction works.
“But lack of top officials with expertise in MoPPW has narrowed the chances of an immediate beginning of the projects,” said Lamsal.

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