BODY FORMEDTO RECOMMEND LAND MANAGEMENT

BODY FORMED TO RECOMMEND LAND MANAGEMENT

Kathmandu, 22 Dec.: Government Wednesday formed a task of seven members to recommend measures for land management.
Minister for Land Reforms Bhim Prasad Gautam heads the body.
Cabinet’s political committee under the prime minister formed the body.
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NEW CASH INENTIVES FOR GOODS EXPORTS

Kathmandu, 22 Dec.: The government announced cash incentive for the export of goods, which have been value-added by the exporter to make them worthy of export, has been further delayed after the Department of Industry (DoI), the focal agency to implement the incentive scheme, formed a new committee to fix the amount of cash incentive for different export industries, Republca reports.

The newly-appointed director general of DoI dissolved a cash incentive determination committee led by Gopal Amatya, a senior official at DoI, to replace with another committee led by Dhruba Joshi, director of DoI, on Tuesday in the name of simplifying the incentive determining process. The new committee has three members whereas the earlier panel had six members.

DoI, which is charged with fixing the cash incentive against the claims from exporters, recommended two firms for cash incentives so far. Gulmi Coffee Cooperative and Annapurna Coffee Industry, both organic coffee producers from the Gulmi district, have received cash incentives of over Rs 700,000 so far.

“Process of fixing the cash incentive amount has come to a halt in last three months. The companies recommended for incentives were selected before Dashain when a small technical unit of DoI was assigned to fix the amount. Formation of the new committee is for incentive purposes. The trick is to take undue advantage from exporters who are fed up with the lengthy process to claim the amount,” said a source at DoI.

The source said there is no need to form the committee as the existing guidelines are sufficient to facilitate the process. However, Dhruba Lal Rajbanshi, newly-appointed director general of DoI, claimed a three-member new committee headed by Dhruba Joshi, director of DoI, has been formed to simplify the distribution of cash incentives.

“We have reduced the number of members in the panel to three from six in the earlier panel so as to ensure prompt decision. Besides, the necessary documents to be submitted by the exporters have also been reduced and simplified,” added Rajbanshi.

He said the process of determining the cash incentives will gain momentum from next week as the panel is studying the applications from 28 firms.

However, Gopal Amatya , a senior official at DoI, who was heading the earlier committee, said DoI staff are confused on whether to adopt a flat percentage on export amount or calculate the amount in every batch of consignment. And, this dilemma is delaying the process. He claimed that existing guidelines for cash incentives lack clear-cut instructions as to how to determine the incentives.

Traders have been complaining against persisting delay in the distribution of the much-hyped cash incentive to the exporters despite the government having announced the scheme in last two consecutive budgets. Frequent changes of committees to determine the incentive amount have hampered the process.

As per the existing cash incentive scheme, exporters of goods with up to 30-50 percent value addition are entitled to get 2 percent of total export revenue as cash incentive.

Similarly, those with 50-80 percent value addition are supposed to get 3 percent while for over 80 percent value addition, 4 percent of the total export value of a particular product has been offered as cash incentive.

The government has so far allocated Rs 600 million for paying cash incentives in two consecutive fiscal years.
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GOVT. TO ROLL BACK DUAL FUEL PRICING FOR INDUSTRY

Kathmandu, 22 Dec.: The government is revoking dual pricing for diesel and kerosene and also raise petroleum prices within a couple of days, Minister for Commerce and Supplies (MoCS) Lekhraj Bhatta said on Wednesday, Republic reports.

Bhatta said this while talking to a delegation of industrialists from Confederation of Nepalese Industries (CNI). The delegation led by CNI President Binod Chaudhary had met with the minister and interacted with the MoCS officials, demanding that the government withdraw its decision that compelled industries and hotels to buy fuel at break-even rates.

“Entrepreneurs in Nepal are already suffering from hefty bank rates, transporters syndicate and other factors that have rendered them uncompetitive. Rise in fuel rates has made things difficult for them,” said Chaudhary. He even requested Minister Bhatta to instantly scrap the dual pricing.

Bhatta responded to CNI´s request positively, but said withdrawal of dual pricing will compel the government to raise prices.

The government had given nod to Nepal Oil Corporation (NOC) to enforce dual rates, which left diesel price for transporters unchanged, but made it dearer to industries by about 25 percent, mainly to cut oil loss and manage import.

Going by the latest supply rates and domestic prices, NOC said it was presently suffering a loss of Rs 1.25 billion in the month of December. As a result, it has been failing to import adequate fuel, a situation which has spurred shortage of diesel in the market.

“The loss on diesel alone stands at Rs 19 per liter. Loss on kerosene is Rs 7.12 per liter. If consumers like you are not ready to pay how much NOC pays for the diesel, how do you think NOC will continue import enough fuel and manage supplies?” Bhatta questioned. He even chided the business community for not accepting the fuel price hike that has become a global phenomenon.

CNI office-bearers, however, said they will pay the price only if government ended anomalies at the state-owned petroleum monopolist, which was adding to its cost. “If the state feels it cannot supply us the fuel, we are ready to fulfill our requirements by importing from India,” said Chaudhary.

The statement of Chaudhary, meanwhile, irked Bhatta. “If the business community wants I will allow you to import fuel to fulfill your requirement. But are you really eager to do so, especially as the prices in India is expensive than in Nepal?” questioned Bhatta.

None of the delegate members expressed interest to import the fuel though.

The CNI delegation also pushed the government to open petroleum imports and invite the private sector into the business. Minister Bhatta said the government was always ready to do so.

“However, we have not yet managed to garner the political consensus to this connection, particularly as political parties maintain double-standard on the issue,” said Bhatta.
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