NO HEARING OF CORRUPTION CHARGE AGAINST KHUM BAHADUR KHADKA

NO SCHEDULED HEARING OF CORRUPTION CHARGE AGAINST KHUM BAHADUR KHADKA

Kathmandu, 27 March: Scheduled hearing of Rs 23.6 million CIAA corruption charge f CIAA against former NC Home Minister Khum Bahadur Khadkad wasn’t conducted
Monday at the supreme court .
The case dismissed by a lower court by technicality was resurrected.
Justice Kalyan Shrestha assigned to hear the case was out of the capital.
Corruption cases dismissed lower courts have been revived at the highest court.
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IOC TO WAIVE EXPORT DUTY PRICING; MAY HELP REDUCE COST OF POL PRODUCTS
Kathmandu, 27 March : India has refused to change the basis of fixing export prices of petroleum products to Nepal, but agreed to address Nepal´s concern related with transfer of Indian duty on Nepali consumers, Milan Mani Sharma writes in Republica,.

During the negotiations on Petroleum Supply Agreement, which concluded on Monday, Indian Oil Corporation (IOC) has agreed to waive off Price Adjustment Factor (PAF), which includes cost associated to refineries and duties.

The Indian supplier was so far charging Nepal 2.5 percent (of the crude and transportation cost up to the Indian port) as PAF. Officials said the new change agreed through the talks will bring down the rate of import for Nepal Oil Corporation (NOC). “Roughly, it is estimated to lower the import rate by Rs 1.5 per liter compared to the past,” said a source.

IOC agreed to waive off PAF without effecting any change in marketing margin - which is IOC´s profit margin.

In the previous meeting held between NOC and IOC in Mumbai last month, IOC had said it would remove the discount pledged on marketing margin, raising it to 5 percent from 2.5 percent (of crude and transportation cost up to the Indian port) if it was to waive off PAF.

“This means we will continue to enjoy discount on marketing margin and also get PAF waived off,” the source told Republica.

But this also means Nepal´s effort to further lower and fix marketing margin at a flat rate failed. NOC had pushed for a cut in profit margin mainly arguing that rise in crude prices and volume of consumption in Nepal since the last agreement has significantly raised profit that IOC enjoys from Nepal.

Referring to comparisons in Brent crude price, which was $60 barrel in 2007 and $124 at present, and Nepal´s consumption, which was just around Rs 25 billion per annum then and about to touch Rs 100 billion now, NOC had pinpointed that IOC was presently enjoying some 3.5-fold more profit than what it had eyed in 2007.

However, IOC officials refused to lower the profit margin. IOC also refused to fix the marketing margin at a flat rate. NOC had pushed for the flat rate mainly as such an arrangement would have cushioned it during fluctuations of crude prices as well as exchange rate.

Likewise, IOC also refused NOC´s request to allow it import petroleum products from other Indian companies.

Keeping in view of growing interests shown by other Indian oil companies, such as Essar Group and Bharat Petroleu, NOC had requested the IOC to open up exports to Nepal for other companies as well.

“We had perceived IOC will not respond to it positively. And we were true,” said the source, adding that IOC will continue to enjoy its monopoly in Nepali petroleum market.

NOC presented the new arrangements worked out for the new supply agreement to the NOC board for approval on Monday itself. However, as the board meeting went on till late, Republica could not take reactions of the board members.

If the board endorsed it, top NOC and IOC officials will ink the deal, and the new arrangement will come into effect from April 1
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SENIOR MOST US DIPLOMAT AFTER SECRETARY OF STATE COLIN POWELL ARRIVING
Kathmandu, 27 March : US Under Secretary of State for Political Affairs Wendy R Sherman is visiting Nepal in early April, marking a highest political visit from Washington in a decade, Kiran Chapagain writes in Republica..

Sources at the Ministry of Foreign Affairs and the Prime Minister´s Office told Republica that the US Embassy has informed them about Sherman´s two-day visit beginning April 4.

"The details of the visit are still being confirmed," said US Embassy Spokesperson Heather Steil.

Sherman´s will be the highest political visit from Washington since the visit of then Secretary of State Colin Powell to Nepal in January 2002. According to the website of the Department of the State, Sherman is the third highest-ranking official at the Department.

As of now, she is scheduled to meet Prime Minister Dr Baburam Bhattarai and Deputy Prime Minister and Minister for Foreign Affairs Narayankaji Shrestha only, the sources said.

Though the details of the agenda of her visit are yet to be known, government sources that the meetings will focus on the peace process and constitution writing, US cooperation to Nepal and Tibetan refugees, among others. Besides, the US is also going to seek Nepal´s support in its bid for the membership of the UN Human Rights Council. The current US membership of the UN Human Rights Council is expiring at the end of this year.

Political sources even claimed that Secretary of State Hillary Clinton´s visit to Nepal was also planned initially. But as Clinton could not come to Nepal, Washington is sending its under secretary for political affairs to Kathmandu at a time when the country´s political situation is in its critical stage.

A senior official at the Ministry of Foreign Affairs said that Nepal has taken the Washington´s decision to send such a high-ranking official to Nepal in a decade as a "reflection" of positive developments in the bilateral relations in past one and a half years.

"In recent years, Nepal and the US have signed Trade and Investment Framework Agreement. US Peace Crops has returned. The US has selected Nepal as eligible for the Millennium Challenge Cooperation grants and helped Nepal to increase its capacity to tackle natural calamities. Nepal has taken Sherman´s visit as reflection of these positive developments," said the official on condition of anonymity.

Coincidently, Chinese premier Wen Jiabao had visited Nepal in January while preparations are underway to host Indian Prime Minister Manmohan Singh here next month. It will be the first visit by an Indian prime minister in 15 years.
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