RESPONSIBILITIES OF TWO MAOIST STATE MINISTERS CHANGED

MAOIST STATE MINISTERS’ RESPONSIBILITIES CHANGED
Kathmandu, 24 March: Responsibilities of two Maoist state ministers
were reshuffled Friday by Prime Minister Baburam Bhattarai who sacked
Labour Minister Sariti Giri who refused to resign at the request of the government chief the same day.
State Minister for Land Reforms Jwala Kumri Sah was transferred to the
tourism ministry while State Tourism Minister DilipMaharjan was given
charge of the land reforms ministry.
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BUDHA SUBBA GOLD CUP TOURNAMENT BEGINS IN DHARAN SATURDAY
Kathmandu, 24 March: The 14th Budha Subba Gold Cup Football
Tournament begins in Dharan Saturday.
Manang Marshyngdhi Club (MMC) and Dharan FC play in the opening match
Eight teams are completing in the eight-day tournament.
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NOC FOR CHANGE IN PRICE SETTING BASIS
Kathmandu, 24 March:: Nepal is requesting India to change the basis on which it fixes export prices of petroleum products for Nepal, as the existing pricing based on import parity price (IPP) compels Nepali consumers to bear Indian duty that they are not required
to pay, Milan Mani Sharma writes in Republica..

In a two-day bilateral talks on Petroleum Supply Agreement beginning in the capital on Saturday, Nepal Oil Corporation (NOC) is proposing Indian Oil Corporation (IOC) to set prices based on export parity price (EPP), which is the price that oil companies would realize on export of fuel, instead of IPP adopted so far.

IPP, according to IOC´s own definition, represents the price that includes import charges and customs duty. It is used for pricing domestic supply. EPP, on the other hand, does not account import duty. Hence, it is regarded the appropriate base for calculating price while exporting refined products.

"As Nepal is entitled for duty free supply, fuel pricing for Nepal should be based on EPP," said an official at Ministry of Commerce and Supplies (MoCS).

So far, India is refunding the duty charged on crude, calculating the total volume of fuel imported by Nepal. But as later costs included in the price buildup are calculated on the basis of price that already includes duty, the government has assessed that existing system still passes on unseen burden of Indian duty to Nepali consumers.

A high-level commission that the government formed last year to suggest reforms in country´s petroleum sector too had called the government to switch to EPP, saying that only it will free Nepalis from undue transfer of additional cost.

"If IOC responded to our request positively, it will straightaway lower Nepal´s import rates by at least Rs 1.50 per liter," the source added.

But given that existing system ensures additional returns to IOC, officials doubt the Indian supplier will take the request in positive light.

During the talks, NOC will also request the IOC to lower marketing margin, which is its profit margin, and fix it at a flat rate.

Presently, IOC has been charging marketing margin at the rate of 2.5 percent (of crude´s cost and freight charges up to the Indian port). This, it says, is just 50 percent of what oil companies charge in India.

NOC is pushing for a cut in profit margin mainly to rationalize the deal as rise in crude prices and volume of consumption in Nepal since the last agreement has significantly raised profit that IOC makes from Nepal.

"In 2007, Brent crude was price around $60 per barrel; now it is well over $124. Likewise, Nepal then used to consume just around fuel worth Rs 25 billion per annum. Now annual consumption is set to touch Rs 100 billion," said the MoCS source.

If MoCS´ calculations is anything to go by, changes in just these two factors have inflated IOC´s profit from Nepal by well around 3.5-fold over the last five years. Add to it the impact of exchange rate fluctuations.

Clearly, the existing profit margin is higher, said the source, adding that NOC will request IOC to fix the margin at a flat rate. "Flat profit margin will cushion us from fluctuations of crude prices as well as exchange rate even while assuring IOC that its profit will also remain at a set level."

Likewise, the state-owned petroleum monopolist will also seek IOC to allow it import petroleum products from other Indian suppliers as well. Though the existing agreement allows NOC to source oil from third countries, it is silent on allowing other Indian oil companies to export to Nepal. "We are pushing for this change, as we believe competition on export will greatly benefit our consumers," said the source.

During the talks, NOC will also request IOC to seek payments on fortnightly basis, changing the present practice that compels it to make payments in four installments in a month. "This change will ease us in fund management," said the source.
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WOMAN BATTERED FOR ALLEGED WITCHCRAFT IN CAPITAL
MAY LOSE EYESIGHT
Kathmandu, 24 March: Sunita Pudasaini, who was beaten black and blue on the charge of ‘practising witchcraft’, has been referred to KMC Hospital after she complained of chest pain today [Friday], Repulica reports.

Brutal physical torture was meted out to Pudasaini of Gothatar by her close relatives and the perpetrators had tried to gouge out her eyes alleging that ‘her evil eyes had caused sickness on them and made Tara Dahal, a daughter of the victim’s aunt, infertile’.

The situation turned violent when Bhawani Shankar Gautam of Kavre, a self-declared ‘witch doctor’, told Tara ‘she was childless and had fallen ill only because Pudasaini had cast black magic on her’, in Nayabasti, Jorpati. Pudasaini had gone to Nayabasti to visit her aunt.

She cannot open her eyes because of injuries. In the bed of the emergency ward, she has been moaning and groaning.

Campaign coordinator of WOREC Nepal, an NGO working for women’s rights, quoted Dr Ben Limbu, who attended to Pudasaini at Tilganga Eye Hospital, that the victim had undergone operation in the left eye.

“Her eyes have developed infection from the injuries as the attackers tried to gouge out the sensitive organs. The left eye is in worse condition than the other. She has also suffered injuries in the eyeballs,” Rai quoted Dr Limbu.

According to the hospital, it is still too early to get Pudasaini’s eyesight checked. For such test, a patient should be able to open eyes.

Doctors attending to Pudasaini at KMC Hospital said the woman has cracks in the socket of the left eye, describing her condition as stable.

Pudasaini, mother of two daughters, is a single woman.

Police have already arrested six culprits, including main accused Gautam, Tara and her husband Gyanendra of Nayabasti. They have been charged with attempted murder. Narahari Pudasaini, a relative of the victim, demanded that the government take stern action against the guilty to make sure that such incidents do not repeat in the future.

According to Narahari, doctors have advised the relatives to bring the victim to the Tilganga hospital next Friday for follow-up and further treatment.

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GOVT. PANEL RECOMMENDS REVOKE OF LICENCES FOR NETWORK
BUSINESS
Kathmandu, 24 March: Though the government had decided to scrap network businesses terming them illegal, a Supreme Court stay order has given a respite to the business groups, it seems, The Himalayan Times reports.

A probe panel formed under the coordination of former Home Secretary Govinda Kusum had recommended the government to revoke the licences of the network
businesses, saying there’s no law to regulate such businesses in Nepal.

Based on this recommendation, the Ministry of Commerce and Supplies (MoCS) initiated action. After that, network business groups moved the SC challenging the government decision. In turn, a division bench of Justices Khil Raj Regmi (now Chief Justice ) and Justice Top Bahadur Magar issued a stay order, which ultimately benefited network marketing business groups, including Herbo International Nepal. “A final decision on the case will be taken on Tuesday as a division bench of justices Sushila Karki and Bharat Raj Upreti have been examining the legality of the business,” Suresh Khanal, under-secretary at the apex court, told this daily today.

Hearing on the case got delayed with the retirement of justice Abadhesh Kumar Yadav, who had been looking into the case, three months ago.

The apex court order states that it is illegal to shut down businesses that are operating after getting licences from the government. But it adds that the government has the right to annul directives. The business groups are running multi-billion network businesses though the government has not renewed their licences, said an advocate involved in the case.

According to the advocate, following the SC order, the business groups moved the company registrar’s office for renewal, but the latter rejected the request.

Herbo International, New Bibek Enterprises, Subhalaxmi Marketing, Green Link International, Omi Player Cosmetic and Robias International have been running the network business taking advantage of the order.

As per the court record, Herbo, which began its business with Rs 2.5 million, has increased its authorised capital to Rs 200 million and immediate paid-up capital to Rs 200 million by amending the memorandum and article of association. It has more than 10,000 agents across the country.

“Since we have no law to regulate networking businesses, they are against the Consumer Protection Act and the competitive market policy,” consumer rights lawyer Jyoti Baniya argued.

Submitting written explanations to the apex court, Finance Secretary Rameshwor Khanal, Law and Justice Secretary Madhav Paudel, Home Secretary Govinda Kusum, Commerce and Supplies Secretary Pratap Kumar Pathak and Prime Minister Office Secretary Bimal Wagle had termed the business ‘illegal’ and requested the SC to shut them down.

Even after the MoCS gave authority to run the businesses by issuing directives, the government initiated action against them after the Kusum-led committee recommended the closure of the businesses.

On February 9, 2010, the MoCS called the networking business groups to register their businesses as per the current Act within 45 days. However, on May, 2010, the groups moved the apex court against the order.

Advocate Meghraj Pokhrel, who has been defending Herbo, claimed that as the business groups are running their business by acquiring licences from the government and paying tax, the government action against them is wrong.
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WAYAHEAD FOR MAOIST CHIEF
Kathmandu, 24 March: One of the central challenges in the peace process was Maoist Chairman Pushpa Kamal Dahal´s enduring dilemma: Should he keep his party intact or risk a split by taking forward the peace process and constitution writing,
Republica writes.
As the party teeters on the brink of a split, with the hardliners adamant on pressing ahead with their radical agenda, Dahal´s dilemma seems to have finally ended.

After wavering for about five months since the signing of the 7-point peace deal last November 1 and having tried out different things- unsuccessfully seeking Prime Minister Baburam Bhattarai´s resignation to please the hardline faction led by Mohan Baidya, among them- Dahal has finally decided to take the integration process ahead.

Based on an understanding reached at a meeting held at Baluwatar Thursday afternoon and attended by Chairman Dahal, Prime Minsiter Bhattarai and NC leader Krishna Prasad Sitaula, the Special Committee directed its secretariat to finalize the integration roadmap, including standard norms and procedures, within the next five days.

According to the understanding, a maximum of 6,000 Maoist combatants will be integrated in the Nepal Army. (Though the seven-point deal says that up to 6,500 combatants will be integrated the gentleman´s agreement at that point was that not more than 6,000 would join the army).

The Maoists have also agreed to defer the question of the highest rank that PLA combatants will get in the NA after integration.

As per the agreement, the issue will be taken up once the Nepal Army (NA) completes the individual entry process for the combatants based on its standard norms. The standard norms will be set on the basis of the understanding reached in the seven-point deal.

Once the picture becomes clear how many PLA combatants will qualify to join the NA, the parties, in consultation with the army, will decide the size of the proposed directorate in the NA. It´s only then that the issue of rank will be taken up "if necessary".

One reason why Maoist Chairman Dahal has tried so strenuously to avoid a split in his party was that he wanted to use the strength of a united party to exact more concessions from other parties.

With party unity now unraveling fast, Dahal has also given up on many of his bargainings.

Besides his bargaining for higher posts for PLA combatants in the NA, Maoist Chairman Dahal also wanted an agreement on system of governance before the integration process began.

As NC and the UML stood firm in their stance that there would be no agreement on constitutional issues unless and until the integration process began, Dahal had sought a broader understanding on constitutional issues, but in vain.

In the end, Chairman Dahal gave up his bargaining. There is no understanding, let alone a deal, on the issue of system of governance or state restructuring.

The only understanding is that the parties will take up the issues related to constitution writing once the integration process begins.
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