PM BHATTARAI HOLS TALKS WITH INDIAN HOME MINISTER

PM BHATTARAI HOLDS DISCUSSIONS WTH INDIAN HOME
MINISTER

Kathmandu, 22 Oct. Visiting Prime Minister Baburam Bhattarai held
discussions in New Delhi with Home Minister P Chidamanbaran
Friday on the third day of his India
Border dispute and security were discussed.
The government chief is holding discussions with the defense minister
as well
The visit will give new direction to bilateral relations, the premier told Nepal reporters accompanying him of four-day visit.
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BIPPA, US$ 250m LINE OF CREDIT SIGNED
Kathmandu, 22: Demonstrating serious commitment to ensuring the security of investments and businesses in the country, Nepal signed a much-awaited bilateral investment promotion and protection agreement (BIPPA) with India on Friday,Ameet Dhakal and Akanshya Shah report from New Delhi in Republica.

The two sides have also signed an agreement on a line of credit worth US$ 250 million, which was finalized during the visit of President Ram Baran Yadav to India. This credit will be utilized in upgrading and strengthening existing power transmission lines and also for the construction of new transmission lines.

Similarly, a memorandum of understanding has been signed on health assistance for goiter control.

However, the much-awaited Double Taxation Avoidance Agreement (DTAA) could not be signed. A DTAA between the two neighbors would embody modern principles for creating a better investment environment and reducing the cost of doing business. The DTAA remained a debated issue during talks here. India wanted to add one more clause in the draft DTAA that the Nepal cabinet had endorsed. The current draft of the agreement was cleared by the cabinet almost eight months ago during Jhalanath Khanal´s tenure as prime minister.

India sent the additional clause to Nepal last week and it was not added to the original draft. India´s concern was finally addressed during the PM´s meeting with Indian Finance Minister Pranab Mukherjee Friday.

However, Mukherjee will be coming to Nepal within a month to sign the DTAA once the differences are sorted out.

"Mr Mukherjee will reach Nepal soon to conclude the DTAA," Finance Minister Barshaman Pun said, adding that the reason for not signing the DTAA was that "it has not been endorsed by the Indian cabinet."

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Line of credit to be used for transmission lines
• PM charms Indian biz community, assures investment security
Likewise, Nepal got no concrete assurance over Bhattarai´s economic wish-list forwarded to New Delhi before his arrival here. The Indian side only said that it will look into Nepal´s request positively. The wish-list included a credit line of US$ 1 billion for the construction of the Kathmandu-Tarai fast track, the construction of 53 bridges along the Hulaki road under Indian grant, and establishing of six premier management and technical institutes, among other things.

The billion-dollar line of credit was to be provided at an interest rate of 1.75%.

PM-Manmohan Talks

During bilateral talks between the two prime ministers, PM Baburam Bhattarai has significantly proposed the formation of an eminent persons´ group consisting of four people from each country to review and look into the entire gamut of Nepal-India relations including the 1950 treaty.

The proposal was accepted by the Indian side and both countries have agreed to form such a group, which will have one year to make its recommendations to the governments.

Sources present at the talks also said that Indian PM Manmohan Singh expressed India´s commitment to help Nepal´s peace process and wished for an early conclusion of constitution drafting. He, however, also discussed India´s security concerns with Prime Minister Bhattarai.

During the function held at Hyderabad House, PM Bhattarai said that the discussions during the visit will be a pointer to better understanding and increased cooperation between the two countries.

Prime Minister Bhattarai also held a half-hour one-to-one meeting with the Indian prime minister.
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LINE OF CREDIT TO BE USED FOR
LAYING TRANSMISSION LINES

Kathmandu, 22 Oct.: The US$ 250 million line of credit that Nepal and India have signed today will be used in the construction of new transmission lines and for maintenance and upgradation of existing ones so as to facilitate the import of power from India and to connect potential power plants to be built by private power generators who have already obtained generating license, Republica reports ., Republica Republica reports from New Delhi
The credit line was agreed in principle during President Dr Ram Baran Yadav´s visit to India last January, but was formally signed Friday.

Of the US$ 250 million, 90 million will be used in upgrading the Duhabi-Kataiya transmission line in the Koshi Power Corridor. Duhabi-Kataiya is currently a single circuit transmission line, and once upgraded to double-circuit it will enable Nepal to import an additional 100 MW from India.

Lack of adequate transmission lines connecting the two countries has been the major obstacle in importing more power from India to address the problem of chronic power cuts in Nepal, especially during the dry season when run-of-river power projects typically generate very little. Part of the money will also be used in the maintenance of the Bhairawa-Nautanawa transmission line.

The maintenance and upgradation of more than half a dozen other transmission lines inside the country will enable the national power grid to transmit an additional 100 MW, according to experts.

The remaining part of the credit will be used in the construction of new transmission lines in areas across the country where the government has already given generating licences to private power developers.

These new transmission lines will connect power plants coming into operation in future to the national grid. Construction of new transmission lines is expected to encourage private power developers to enter into a power purchasing agreement with Nepal Electricity Authority and begin construction work.
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WHAT IS BIPPA ?

Two countries with bilateral investments typically sign a Bilateral Investment Promotion and Protection Agreement (BIPPA). India has already signed such agreements with more than 80 countries, including some where Indian businesses have not yet made any investments. Globally, 186 countries have signed BIPPA, Republica adds from New Delhi.

BIPPA basically makes the host country liable for losses within its territory that businesses from the investing country suffer due to war, insurrection or riots--areas that are typically not covered by insurance companies. It also stops the host country from nationalizing foreign businesses without paying them due compensation.

Generally, there is a universal template for such agreements but countries make modifications that suit their needs and interests.

For instance, the BIPPA signed between Nepal and India incorporates two important changes under request from the Nepali side. First, the agreement does not have a retroactive clause and won´t be applicable to Indian businesses established in Nepal before the signing of the agreement.

In the definition of the scope of the agreement, it says, "This agreement shall not apply to any disputes that arose or anything that was settled before its entry into force."

The second important change is with regard to civil disturbances. Generally, the compensation clause of the agreement covers losses against war and civil disturbance.

But Nepal insisted that "civil disturbance" can have different interpretations and wanted to make it more specific so that bandas and strikes are not interpreted as cases of civil disturbance. So the term "civil disturbance" was replaced by insurrection and riots.

"While insurrection takes place against the state, riots happens in a public place. This addition, therefore, clears our concern that the Nepali state would be made to pay for losses accruing from strikes at businesses and bandas," said Rameshore Khanal, former finance secretary and the prime minister´s economic advisor.

This BIPPA does not make the host country liable for losses suffered by foreign businesses within the county due to other reasons such as power cuts and strikes by labor unions, as is generally misunderstood.

What is DTA agreement?

The agreement on Double Taxation Avoidance basically allows Indian businesses in Nepal to obtain tax credit in India for tax they already paid in Nepal. The DTAA now replaces the old agreement on double taxation avoidance that has become more or less obsolete in the rapidly evolving economic/financial context.

One important addition in the new DTAA is that the two countries have agreed to exchange tax related information. In the past, the Nepali side was not comfortable with this clause and that was what deferred the agreement for almost two years.

It was the Jhalanath Khanal government that finally endorsed the draft of the DTAA agreement last March with a clause that makes it mandatory for both countries to exchange tax related information.

The OECD (Organization for Economic Cooperation and Development) countries now have a mandatory provision that says member countries cannot sign a DTAA with another country without including a provision for exchanging tax related information.
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BIPPA A CALCULATED RISK
• 2

Kathmandu, 22 Oct.: Following a significant bilateral deal to provide protection for Indian investments in Nepal, PM Baburam Bhattarai said he was well aware that the Bilateral Investment Promotion and Protection Agreement (BIPPA) could invite criticism in Nepal, clearly indicating that the move was a calculated political gamble, The Kathmandu Post reports from New Delhi.
“I took the risk. I am well aware of the possible backlash. This was my gamble and it will pay off,” Bhattarai said.
After talks with Indian PM Manmohan Singh and other top leaders, Bhattarai said groundwork has been laid to build a new relationship between Nepal and India.
“This was important because there was some misunderstanding between India and Nepal, especially with our party. Though I came (to New Delhi) as prime minister, they saw me as a Maoist prime minister. I succeeded in explaining to them our position.” He met Finance Minister Pranab Mukherjee in the evening and External Affairs Minister SM Krishna in the morning.
The PM said he was much impressed by the consistency of messaging by all the Indian leaders, which showed their common concerns.
In his 30-minute one-on-one with his Indian counterpart, Singh expressed his concerns over the peace process, security issues and economic cooperation.
The Indian side was open to discuss the 1950 Treaty of Peace and Friendship. The two sides agreed to approach it in a new way with the formation of an EPG (Eminent Persons Group), which will have four persons from each side. The EPG will also look into broader bilateral issues, such as border and economy. It will hand its proposal in a year.
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CHINESE TEAM MEETS LEADERS
Kathmandu, 22 Oct.: A day after its arrival, a Chinese delegation comprising more than a dozen officials met and discussed a wide range of issues, including Nepal’s relations with China and India, with foreign department chiefs of major political parties. “Their particular concern was for better and cordial relations among Nepal, China and India,” said Milan Raj Tuladhar, who was foreign affairs adviser to former Prime Minister and CPN-UML Chairman, The Himalayan Times reports.

Apart from separate meetings with the Nepali Congress’ foreign department chief Sujata Koirala, CPN-UML’s Pradip Gyawali and representatives of the UCPN-Maoist’s foreign department, the delegation under Ai Ping, Vice-minister at the International Department of the Communist Party of China, also called on NC President Sushil Koirala today.

The discussion with Koirala centred on relations between the two neighbours and the two parties: the CPC and the NC. Ai is expected to call on UCPN-Maoist Chairman Pushpa Kamal Dahal and UML leaders tomorrow.

Accompanying Zhou Yongkang, a powerful Standing Committee member of the CPC Political Bureau, Ai had visited Kathmandu in the second week of August as well.

Officials at the Ministry of Foreign Affairs described the Chinese delegation’s visit as ‘unofficial’. They assume that a high-level Chinese delegation will visit Nepal soon and this visit is meant to prepare ground for the same.

According to sources, Liu Qi, a member of the CPC Politburo, is arriving in Kathmandu on November 5 on a four-day visit. “Liu is considered one of the 10 highest ranking and influential players at the CPC Politburo, like Yongkang,” said an MoFA official. The Chinese embassy in Kathmandu has requested the time of the president, prime minister and other leading political actors for the meetings during his visit.
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CIAA EERILY SILENT ON BRIBE CASE

Kathmandu, 22 Oct.: The October 11 bribing of Babita Tiwari, the widow of Hindu Yuva Sangh Chairman Kashi Nath Tiwari, has failed to draw the attention of the Commission for the Investigation of Abuse of Authority, despite the sacking of Land Reforms and Management Minister Prabhu Sah, the alleged brains behind the murder of Kashi Nath on June 26 last year, The Ananta Raj Luitel writes in Himalaya Times

CIAA’s inaction is intriguing. But no less intriguing is the unwillingness of Babita, who revealed at a press conference on October 12 that government Joint-secretary Nagendra Jha had given her Rs 8 lakh a day earlier at his residence in New Baneshwor to absolve Minister Sah of the murder charge. Babita said she had received the money to hand it over as a proof to authorities to get her husband’s killers punished.

CIAA has read it as the family’s unwillingness to dig deeper.

“We will not investigate the bribing case with suo moto initiative for want of proof,” Bhagawati Kumar Kafle, CIAA secretary, told this daily. “Besides, we don’t believe that the family members will assist us,” he said, despite the fact that Section 13 of the CIAA Act 2002 has it that the anti-graft body should probe any graft case revealed through the media or a whistleblower.

“On the one hand, Jha has already refuted allegations through the media and he may not cooperate with our investigation. So, quizzing him is futile. On the other, Tiwari’s family members have not approached us for a probe. Given the situation, it is useless to dig into the case,” Kafle said. CIAA fears the Tiwari family may refute the charges that it received money from any source. “Therefore, we concluded that it is the best idea to wash our hands of the case.”

The cash recipients have their own point.

“Why should we hand over the money to the CIAA if it is not interested in investigating the case,” Jyoti Lal Sah, a close aide of the Tiwari family and Hindu Yuva Sangh leader, said. “We will help CIAA officials if they approach us for investigation, but will not visit the CIAA to hand over the amount.”
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OCT. 31 FOR ILLEGAL WORKERS IN MALAYSIA
Kathmandu, 22 Oct.: The Malaysian government has asked all illegal migrant workers to leave the country by October 31. The decision was taken by the country's Ministry of Home Affairs on Thursday, Ram Chandra Giri writes in The Kathmandu Post from Kuala Lumpur.
Following this, the Nepali Embassy in Malaysia has issued a notice calling on all undocumented Nepali migrant workers to contact the embassy and apply for travel documents at the earliest to leave the country by the given deadline.
In July, the Malaysian government had introduced the "6P programme" and encouraged all illegal migrants to register under a biometric system for legalisation and amnesty. The "6Ps" stood for six processes--registering, legalising, pardoning, monitoring, enforcing and deporting illegal immigrants.
The latest decision is for those illegal migrants who did not take part in the registration process and also those who wished to return home during the process. The illegal workers will be exempted from legal action if they return to their homeland by October 31.
According to the embassy, around 33,000 Nepali migrant workers, a majority of them willing to work as legal migrants, were registered in the programme.
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PARTIES CLOSE TO DEAL ON INTEGRATION SAYS UML CHIEF KHANAL





Kathmandu, 22 Oct : CPN-UML chairman Jhalanath Khanal Friday said that the political parties were close to a deal on the army integration and would forge consensus on it soon, The Rising Nepaal reports.
Speaking at a function organized on the occasion of Nepal Sambat 1132 in Kathmandu, Khanal said that the major parties were engaged in groundwork seriously and would clinch a deal on the integration and rehabilitation of the Maoist combatants.
Khanal said that there was no alternative to consensus for the early conclusion of the peace and constitution writing processes.
"Conclusion of peace and constitution writing processes are necessary to bring about economic revolution," he added.
Touching on the internal rifts within big and small parties, he said that they reflected the transition period and needed to be managed appropriately.
However, another UML leader Madhav Kumar Nepal, speaking at another programme, asked the Maoists to translate their words into reality.
"The latest political developments have made us to be optimistic about the peace process although the Maoists had frustrated us earlier," he said.
Nepal said that the Maoists sometimes delivered a note of optimism and sometime pessimism. "The Maoists often change their tone and complicate the peace process."
In another context, Nepal said that foreign nations had been always undermining the Nepalese Prime Ministers during their foreign trip.
"We, Nepalese, are sovereign, and Nepal is a sovereign nation but we have been unable to get respect that we deserve," he said and added that the Nepalese leaders were themselves responsible for the domination of the powerful nations.
Meanwhile, Nepali Congress president Sushil Koirala accused the Maoists of not being honest to the peace process.
Inaugurating a district conference of the party in Gorkha today, he said
that the Maoists failed to demonstrate sincerity by not implementing the past agreements.
Koirala said that Maoist chairman Pushpa Kamal Dahal Prachanda and Prime Minister Dr. Baburam Bhattarai shown their seriousness about the peace process but they must prove it before the nation and international community by taking decision in the party.
He also said that the Maoists were creating hurdle to the peace process

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SOCIAL SECURITY REGULATION IN OFFING





Kathmandu, Oct. 22: Homenet, South Asian network of home based workers, and various stakeholders marked the first Home Based Worker’s Day Thursday demanding implementation of the ILO declaration and the Social Security Regulation, The
Rising Nepal reports.
Bearing in mind to the historical achievement of Kathmandu Declaration of 20 October 2000, Homenet, South Asia, Homenet Nepal, GEFONT, ILO and NTUC-I jointly celebrated the day organizing various programmes in the capital.
Home based workers and the representatives of Homenet arrived in Kathmandu from Bangladesh, Bhutan, India, Pakistan and Sri Lanka to mark the event.
More than 10,000 house based workers and stakeholders participated in a rally organized by the Homenet Nepal. A workshop was also organized on the occasion.
Addressing the workshop, Purna Chandra Bhattarai, Joint Secretary at the Ministry of Labour and Transport, informed that the new social security regulation for labourers was soon going to be introduced in Nepal.
He said that around 2, 200,000 home based workers are estimated to be in Nepal and 80 per cent of them are women.
Bhattarai assured that the regulation would be fruitful for addressing the issues of the home based workers.
He stated that the home based workers faced many challenges. "Their works are seasonal, they are paid minimum wages and are deprived of other facilities which are provided to the labourers of the formal sectors," he said.
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