THARU STRIKE EXTENDS TO SECOND DAY

THARUS CLOSE DOWN TERAI DISTRICTS
Kathmandu, 2 Sept.: A strike by Friday by Tharus protesting Thursday’s three-month extension of the constituent assembly to complete the peace process and draft and promulgate a constitution disrupted normal life for the second day, especially in the far-West districts.
The community is pressing eight demands.
The indigenous group is also opposing a Madhav Kumar Nepal government decision to adopt the daura, suruwal and toi as the national dress
The supreme court in a recent verdict explained the government decision.
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TWO STUDENTS KILLED AFTER FALLING OFF CLIFF
Kathmandu, 2 Sept: Two students of a school at Bidur municipality died overnight after falling off a cliff in Nuwakot.
Students were identified as Arjun Gurung, 15 and Lalit Tamang, 15.
Three missing students reported back to a school.
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DURGA BHATTARAI ACTING FOREIGN SECRETARY

Kathmandu, 2 Sept.: Durga Bhattarai Thursday took over responsibilities of acting foreign secretary
Bhattarai is a career diplomat at the foreign misry.
Madan Kumar Bhattarai, who was superannuated, has been confirmed ambassador to Japan.
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PRIORITY TO STORAGE TYPE POWER PROJECTS
Kathmandu, 2 Sept.:The government has accorded priority to building storage-type hydropower projects in a bid to provide a long-term solution to the ongoing power crisis. As part of this strategy, it has started a study of around 11 storage-type projects across the country, Pragati Shahi writes in The Kathmandu Post.
Of the 16 hydropower projects listed for different levels of study including detailed feasibility study and detailed project report (DPR) for this fiscal year, 10 are storage-type projects with a capacity more than 2,000 MW.
Though belated, the government has allocated around Rs 860 million for conducting initial level studies and DPR of 16 hydropower projects along with the preparation of a master plan for storage-type hydropower projects for the fiscal year 2011-12.
The Kulekhani Hydro Electricity Project (60 MW) is the only reservoir-type hydel project in the country.
Balananda Poudel, energy secretary at the Ministry of Energy (MoE), said the government was positive about developing storage-type projects to ease the acute power crisis being faced by the country particularly during the dry season.
Despite the interest in developing small, medium and large hydropower projects, the government, local developers and donors have been reluctant to invest in storage-type projects as they require huge investment and have a high
vulnerability rate during and after the construction phase.
Meanwhile, the government has allocated Rs 2.5 million to prepare a master plan of storage projects in the country. Among the major storage hydropower projects are Budhi Gandaki (600 MW), Uttarganga (300 MW), Dudh Koshi (300 MW), Nausyalgad (400 MW), Tamor (380 MW) and Indrawati (7.5 MW), among others.
The country currently has an installed capacity of 697 MW all of which, except for the Kulekhani, is produced by non-storage, run-of-the-river projects. The country’s total power demand has reached around 967 MW, while there is a winter deficit of 520 MW. There is a shortage of 250 MW even during the monsoon season.
According to Anup Kumar Upadhyay, Budhi Gandaki and Nausyalgad had been included in the government’s priority list in earlier budget programmes. Though a feasibility study for the Budhi Gandaki project located in Dhading district was completed in 1984 and it was opened for international bidding in 2007, there was little interest from both national and international developers.
“However, a study has already been started to develop this project with the necessary funds to be mobilized by the government itself if there is no interest from donor agencies,” he added.
Subarna Shrestha, president of the Independent Power Producers Association Nepal, said that there was an urgent need to invest in storage-type projects to provide a long-term solution to the power crisis prevailing in the country.
“However, in the present context, there is less possibility of investment in storage-type projects by private hydropower developers due to the high cost. The government should take the lead to develop such projects, which will be later supported by the private sector,” said Shrestha.
List of Projects to be studied
Project Budget Allocated
Budhigandaki 240 million
Uttarganga Storage Project 20 million
Bagmati Storage Project 5 million
Dudhkoshi Storage Project 10 million
Andhi Khola Storage Project 2 million
Nalsyaugad Storage Project 20 million
Tamor Storage Project 20 million
Kaligandaki Storage Project 5 million
Indrawati Storage Project 1 million
Nisti Pana Storage Project 10 million
Gaudi Khola Khadgakot 2 million
Storage Project
Upper Arun Hydropower Project 40 million
Lower Tamakoshi 20 million
Bagmati Kulekhani Pharping 2.5 million
Mathillo Seti 400 million
Mathillo Modi 60 million
Master Plan Preparation of Storage Project 2.5 million
Source: NEA
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NRB OFFERS TO PURCHASE DOLLARS FROM RBI
Kathmandu, 2 Sept.: Nepal Rastra Bank (NRB) has urged its Indian counterpart—the Reserve Bank of India (RBI)—to open its window for purchasing Nepal’s US dollar reserves in exchange of Indian currency, The Kathmandu Post reports.
Currently, the Nepali central bank sells its US dollars to Indian commercial banks to get IC. If RBI opens the window, NRB can sell its dollars to the Indian central bank in case it is unable to find better exchange rate in the Indian market. “If RBI’s rate is better than that of the market, we can get IC from RBI which will be beneficial for the country,” said a senior NRB official.
NRB had proposed the Indian central bank formally in this regard a month ago when Nepali officials visited the Indian central bank. “We also proposed the same during RBI governor D Subbarao’s recent Nepal visit,” said the official.
Nepal has increasingly been purchasing IC in recent years due to huge trade deficit with India. As of the first 11 months of last fiscal year, Nepal’s trade deficit with India stands at Rs 200.87 billion, up by 26.2 percent compared to the same period in the previous year.
Not only has the trade deficit, Nepal’s trade dependence on India also risen to 66.9 percent as of the first 11 months of 2010-11 compared to 56 percent a year ago.
According to officials, NRB usually purchases IC twice a month by selling $20 million each time. “Lately, we are purchasing IC three to four times a month,” the official said. That’s why Nepal’s IC reserve has also increased to IRs 31 billion as of Aug 13 from the usual reserve of Rs 20-25 billion, according to officials.
As of the first 11 months of the last fiscal year, NRB purchased IC worth IRs 111.31 billion by selling $2.46 billion. The central bank had purchased IRs 102.09 billion by selling $2.19 billion in the same period a year ago.
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PLA COMMAND,CONTROL STRUCTURE UNCHANGED
Kathmandu, 2 Sept.: Even though the PLA commanders at five main Maoist camps — out of seven across the country — on Thursday handed over keys of the arms containers to the Special Committee (for supervision, integration and rehabilitation of Maoist combatants), there will be no substantial change in PLA’s existing command and control structure, The Himalayan Times reports.

Maoist PLA commander Nanda Kishore Pun will continue to be the in-charge of the combatants, but he will report to SC about PLA activities through the monitors assigned by SC Secretariat.

“The PLAs formally came under the SC command in January,” said Jitendra Dev, a member in SC representing Madhesi Janaadhikar Forum-Democratic. “So, just handing over the keys does not bring about any big change in PLA’s current control and command structure.

SC is the de jure head of PLAs and is commanding and monitoring them through Pun.”

Deepak Prakash Bhatta, an SC Secretariat member, echoed Dev. “Key handover is a symbolic gesture, and it does not affect the current PLA structure,” said Bhatta. Pun, however, said, “I am continuing as the PLA head for the time being, but they will soon report to SC through its monitors deputed at the camps.”
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GOVT MAY PROPOSE 75 NEW MUNICIPALITIES
Kathmandu, 2 Sept.: The Ministry of Local Development (MoLD), has received 75 proposals from 36 districts for municipality status, The Himalayan Times reports from Lalitpur..

The cabinet had formed a six-member technical committee on August 5 to study, define criteria and identify town-oriented VDCs for new municipalities. The committee, headed by Debendra Bahadur Lamichhane was assigned to recommend names of new municipalities by September 7 and the district development committees were given till August 18 to forward proposals for municipal status.

The panel will shortlist names from the proposals after field visits and submit them to the government by September 7 for approval.

“We cannot visit all the proposed areas if the committee’s tenure is not extended,” Lamichhane said. “We will recommend the list after finalising it from among the places visited if the time is not extended,” he added.

Lamichhane said the committee was also given authority to divide the wards of newly declared 41 municipals and study the concept of metro-city in the country. “We have completed the division of wards in 25 municipals and remaining work will be done by the deadline,” he said. “Study on metro-city is yet to begin,” he added.

MoLD will assign executive chiefs in 41 municipals after completion of ward divisions. The proposed municipals have to divide the wards first and submit the application.

The Local Self-Governance Act-2055 BS provisions criteria for new municipalities. Tarai areas and bigger valleys must have at least 20,000 population and hilly and Himalayan region must have 10,000 population. A certain level of infrastructure development, education and health services must be attained and the area must have internal revenue of at least Rs 1.5 million. Apart from this, access by road and air and availability of telephone services are other criteria.

According to MoLD, there are now 99 municipals including the 41 that were recently declared in the fiscal budget. Of the 99 municipals, there are four sub-metropolitan cities — Lalitpur, Pokhara, Biratnagar and Birgunj, and one metropolis — Kathmandu.

There are about 3,770 village development committees (VDC) and 99 municipals in the 75 district development committees across the country. MoLD wants to minimise the number of VDCs and increase the municipalities for better governance and development.
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