ANOTHER GOVT. DOLE FOR NOC Kathmandu, 9 June: Finance ministry has agreed to extend another credit of Rs.1.5 billion from the development budget to NOC to settle its dues with IOC by , Madhusudan Paudel writes in Annapurna Post. Former Finance and Chief Secretary Bimal Raj Koirala objected said money set aside for the poor was being spent for the rich to drive around in cars. nnnn NATIONAL CONSENSUS ONLY WAYTO END CRISIS SAYS OPPOSITION Kathmandu, 9 June:: Leaders of 27 political parties Friday said that the dissolution of the Constituent Assembly (CA) and the declaration of the new CA elections by the government were against democratic norms, constitutional values and national consensus politics, The Rising Nepal reports. At a mass meeting, organized by the 22 parties at Tudhikhel to put pressure on the Maoist-led government to resign, leaders said that the Maoists were trying to capture the state powers by creating a constitutional and political vacuum. They stressed that the resignation of the prime minister was a pre-condition for starting a consensus politics and resolving the constitutional and political crisis. They also announced that their street movement would succeed to change the Maoist-led government and alleged that the Madhes-based parties were also responsible for the dissolution of the CA. Leaders said that national consensus was the only path to end the current political and constitutional crisis. Nepali Congress president Shusil Koirala said that the Maoists would never succeed to kill democracy and the democratic forces. He said that the nation was heading towards an accident but the Maoist-led government had no any humility as it was moving at the direction of the international forces. He said, "Maoists are running on a luxurious path. Democracy is not a path of luxury, it is a path of sacrifice and NC will continue on the democratic path." The Maoists should pave the way for a national consensus government to end the political and constitutional crisis and added, "The NC will never compromise with any forces in its bid to institutionalize democracy." He said that the Maoists had created propaganda against the NC and other parties and clarified that the NC was not against the federal and democratic political system. He clarified that national consensus was the only to resolve the current deadlock and the Maoists should realize this reality in the national politics. CPN-UML chairman and former Prime Minister Jhalanath Khanal expressed hope that Maoist chairman Pushpa Kamal Dahal ‘Prachanda’ and Prime Minister Dr. Baburam Bhattarai would pave the way for a national consensus politics. He said that the nation was facing a constitutional crisis and the government’s declaration of the CA elections was against the constitution. He said that new CA elections were not possible in the current situation and the interim constitution had not spelled out the way to go for second CA elections for a fresh mandate. NC senior leader and former prime minister Sher Bahadur Deuba said that the nation was moving ahead as part of a democratic movement and stressed that Prime Minister Dr. Baburam Bhattarai’s resignation was a pre-condition to start consensus politics for new CA poll. He said, "Without national consensus, the new CA or other elections will not be possible. Reestablishment of the CA will be suitable to resolve the current political deadlock through political consensus. " CPN-UML senior leader and former prime minister Madhav Kumar Nepal said that the Maoists dissolved the CA to stop the promulgation process of a democratic republican federal constitution of Nepal. He said, "The dissolution of CA is against the constitutional values, political consensus and democratic norms." He urged the Maoists to pave the way for consensus politics. "Maoists’ power capturing politics has created challenges in the national politics. It is a time to forge a democratic alliance to save democracy and promulgate a democratic constitution," Rastriya Janasakti Party (RJP) chairman Surya Bahadur Thapa said. He said that the new CA election was not possible in the current political and constitutional crisis. Former Prime Minister Lokendra Bahadur Chand said that the current democratic movement would never stop without achieving the goal and saving the country from the power capturing politics of the Maoists. He said, "The country is in a coma due to the dissolution of the CA by Maoists." Rastriya Prajatantra Party (RPP) chairman Pashupati Shumser Rana said that the Maoists were seeking to capture the polling booths with the help of ex-fighters and capture state powers in the CA elections, but that would be their day dreaming. CPN-UML leader KP Oli said that the current political and constitutional crisis was a result of Maoist’s power capturing politics and alleged that the Maoists were attacking the current political system. NC vice-president Ram Chandra Poudel said that the current government was opposed to national consensus and clarified that the national consensus was the only basis to end the constitutional crisis. NC general secretary Prakash Man Singh and leader Bhim Bahadur Tamang said that the parties were starting the third democratic movement to save the country from the Maoists’ anarchism and totalitarianism. CPN-ML general secretary CP Mainali and Nepal Sadbhavana Party (Anandidevi) leader Jibendra Misra said that the Maoists started the politics of divide and rule to capture the state powers. CPN-United Revolutionary spokesperson Himlal Puri, Chure Bhavar Rastriya Party chairman Keshav Mainali, Chure Bhavar Rastriya Ekta Party chairman Bhumi Raj Niraula, Nepal Socialist Council executive chief SK Chhetri, Nepali Janata Dal chairman Ram Kumar Ojha and other party leaders stressed that the movement would never stop without achieving the goal and reestablishing democracy and the constitutional process. Nnnn POL PRODUCT SHORTAGE HITS NORMAL LIFE Kathmandu, 9 June: Short supply of petroleum products has badly affected normal life for the last one week again, The Rising Nepal reports. According to Nepal Oil Corporation, supply of fuel came down almost by 70 per cent after the Indian Oil Corporation cut its supply to Nepal owing to piling up dues of NOC to IOC. As a result, the poor consumers were compelled to queue in the serpentine line braving the summer heat to get a few litres of petroleum products. Scarcity of the petroleum products has been looming in the country since long as NOC is lacking fund to pay the IOC on the regular basis. Ram Krishna Shrestha, a consumer, said that consumers were compelled to stand in the queue in front of the petrol pumps for half a day to get the fuel. He said the government and the NOC had the responsibility to provide the people needed fuel but they were not sincere in addressing the plights of the consumers. "Fuel shortage has affected the daily routine of consumers like me," he said. He also urged the government to immediately solve the problem. Stating that the crisis of the petroleum products has been common and the government was unable to find a permanent solution to the problem. Saroj Pandey, former president of the Nepal Petroleum Dealers’ Association (NPDA), said that scarcity of the petroleum products would hit hard normal life if the government and the corporation did not solve the problems soon. The statement of the NOC that supply of fuel was cut almost by 70 per cent had encouraged the businessmen to create an artificial shortage. "Such notice will also encourage the consumers to stock fuels unnecessarily," he said. He asked the government and the NOC to readjust the prices of the fuel and provide relief to the poor consumers. He said that the NOC could increase the prices of diesel and cooking gas and reduce the prices of petrol. Pandey said that the government would also adopt the multiple VAT system in the petroleum products which would help reduce the loss of the corporation. He said that the corporation was distributing fuel to the government petrol pumps during the crisis, which had forced the consumers to spend more hours sanding in queues. He asked the NOC to distribute the fuel to the private petrol pumps too as priority as it would help the consumers get the fuel in shorter time. The corporation has remained effortful in importing fuels by requesting the IOC to resume the supply, said the Officials of the NOC. The corporation has decreased the supply of fuels to 700 KL a day in recent times from 2,200 KL a day in normal period. nnnn NCELL TO CLEAR DUES SUNDAY Kathmandu, 9 June: Private telecom operator Ncell is all set to clear its outstanding committed-royalty dues by Sunday, responding to the verdict of the Supreme Court (SC), The Kathmandu Post writes. The company owes Rs 356.58 million in committed royalties to the government for the operation of mobile service as of the last fiscal year. The first private sector mobile company had filed a case in SC, seeking a level playing field with other operators that pay only four percent of their total income as royalty. Few months ago, SC had issued the verdict, making it mandatory for Ncell to pay the committed royalty. “We will pay the remaining royalty dues of Rs 356.58 million on Sunday,” said Sanju Koirala, corporate communications manager of Ncell. She added that the company had planned to clear the dues on Friday itself and even issued a cheque, but was not able to deposit it in Nepal Rastra Bank as the bank closes early on the day. The Nepal Telecommunications Authority (NTA) had asked Ncell to clear the dues on Thursday after formally receiving the SC verdict. “The operator has to inform us with a copy of the deposit slip after paying the royalty,” said NTA spokesperson Kailash Nepaune. Of the total committed royalties of Rs 1.44 billion for fiscal years from 2005-06 to 2010-11, Ncell has already paid Rs 1.08 billion based on the provision of 4 percent of the total annual income, according to NTA. As per licence conditions, Ncell and United Telecom Limited (UTL) have to pay the royalty amount whichever is higher among the royalty they pledged while acquiring operating license or 4 percent of their total annual income. Apart from Ncell, Nepal Telecom (NT) and UTL too owe Rs 20.52 billion (license renewal fee and frequency fee) and Rs 1.26 billion (committed royalty), respectively. The government has not been able to collect fees from these two operators in time due to NTA’s failure to take proper and timely decisions and the operators challenging NTA’s decisions in court. NTA said despite its repeated call to clear frequency fees, NT has not shown interest to clear its liabilities, claiming that the amount was much higher than their estimation. The regulator is being pressured from the Ministry of Finance, the Office of the Auditor General and the National Vigilance Centre to collect the spectrum fee of Rs 710 million and license renewal fee of Rs 20 billion from NT. Three years ago, NTA had ‘provisionally’ renewed NT’s mobile service operation license, charging only Rs 189 million in advance instead of the set Rs 20 billion. But after pressures to recover the dues, the regulator, about two months ago, wrote to NT to clear its dues. However, state-owned telecom company has been saying that it would pay the renewal fee as per the old provision put in place three years ago—NT will pay its dues after Ncell clears its licence renewal fees. Nnnn INCENTIVS FOR 7 HYDRO POWER PROJECTS RECOMMENDED Kathmandu, 9 June: The Ministry of Energy (MoE) has recommended the Ministry of Finance (MoF) to provide concessional loans and value added tax (VAT) exemption on construction materials to seven hydropower projects as pledged in the government’s Load-shedding Reduction Action Plan, The Kathmandu Post writes.. The action plan has pledged four types of support, including concessional loans, VAT waiver on construction materials for projects that are in final construction phases, waiver of delay charge and hike in power purchase agreement rate. The projects for which the MoE has asked for facilities from the Finance Ministry are Andhi Khola, Lower Modi, Lower Balefi, Madi Khola-1, Indrawati Khola, Jumdi Khola and Upper Madi Khola. Currently the average cost for hydropower projects stands at Rs 140 million per megawatt. The action plan has pledged providing soft loans worth Rs 20 million per megawatt at an interest rate of around 7 percent. “The ministry has received applications from 50 projects seeking the facilities,” said Energy Secretary Hari Ram Koirala. “Once these seven projects will be approved for getting the facilities, the ministry will recommend other projects.” According to Koirala, projects that are in construction phase will be recommended first. Of the 50 projects that have applied for the facilities, 33 are currently under construction, while the remaining 17 have signed PPA with the Nepal Electricity Authority, but have not begun construction. According to the MoE data, the 33 projects that are currently under construction will generate 250 MW electricity and the other 13 will generate over 100 MW within 2071. Other projects claiming the incentives include Akhu Khola, Spring Khola, Middle Chaku Khola, Lower Chaku Khola, Chaku Khola, Upper Mailun A, Lower Chaku Khola A, Jiri Khola, Pikhuna Khola, Jhyadi Khola and Bhairavkunda. Independent power producers had long been seeking the government’s support, citing difficulties in completing construction such as high bank rates and low PPA rate. “As the entire hydro development sector of the country is facing hardships due hydropower companies’ poor financial health, the government’s timely supportive measures are crucial,” said Subarna Das Shrestha, president of Independent Power Producers Association of Nepal. He also asked the government to increase the loan payback period to seven years. The plan, however, says if projects, after receiving the facility, fail to generate energy by 2014, they should pay a delay charge worth double the amount. Finance Ministry officials said the ministry was positive about MoE’s recommendations. They said the ministry has formed a taskforce to study ways to ensure necessary resources. The taskforce has been formed to explore ways to mobilise the pledged resources to hydropower projects to ensure their timely completion and help reduce load-shedding hours, said Finance Ministry spokesperson Rajan Khanal. Khanal, however, said the ministry cannot give VAT waiver on construction materials as the tax law is against such a provision. Ministry sources say there has been an understanding to give Rs 2 billion to the projects. Nnnn MEDIA GOOGLE “The government has sent the letter to the Image FM urging it to be more accountable while airing its programme following the people’s complaint at the Hello Sarkar.” (Information Minister Raj Kishore Yadav on government order to a FM station complaining of broadcast, The Rising Nepal, 9 June) nnnn