JHALANATH KHANAL RETURNS GOVT. LOMOUSINE Kathmandu, 28 July: UML Chairman Jhalanath Khanal Friday returned an expensive government limousine provided to him as a former prime minister even as Prime Minister Baburam Bhattarai uses a Nepal-assembled Mustang People have been appalled at facilities provided to former president, vice-[resident, prime ministers, home ministers and chief justices by issuing an ordinance. Khanal followed UML and former Prime Minister Madhav Kumar Nepal, former Home Minister Ram Chandra Paudel and Maoist Chief Prachanda in returning state-gifted limousines for life in a poor country like Nepal. Members of ‘civil society’ Saturday for the third and last day. RPP Nepal Chairman Kamal Thapa said he never took the facility as a former home minister. “These are new Ranas. Why should they given such facilities. What is the rational for giving facilities to home ministers? Why shouldn’t the facility beextended to former finance, foreign and other ministers? ”asked Rashriya Janashakti Party Co-chairman Dr. Prakash Chandra Lohini asked. nnnn leader rdved ariundh when government VAT ON KEROSENE REMOVED Kathmandu, 28 July: A government decision Friday said no VATwill be chargedon kerosene sale. The move is expected to reduce price to give some relief to the poorer section of society. nnnn SHYAM SHARAN CONFIRMS GENERAL KNOWLEDGE INDIA INTERVENED AGINAST PM PRACHANDA AND IN FAVOUR ARMYCHIRF KATAWALTO RETAIN SACKED CHIEF OF ARMY Kathmandu, 28 July: Former Indian Ambassador to Nepal Shyam Sharan has said that it was India that actually intervened in Nepal to prevent erstwhile Prime Minister Pushpa Kamal Dahal from sacking then Army Chief Rookmangud Katawal in 2009, Mahesh Acharya writes in The Kathmandu Post from New Delhi. . Sharan, one of the key interlocutors during the 12-point agreement between the Moaists and the seven-party alliance, was speaking at an interaction during the launch of the book “Nepal in Transition: From People’s War to Fragile Peace’’ in New Delhi on Friday. “I wouldn’t say that India has no influence in Nepal but such influence should be used in a proactive manner and that was what we did in 2005 during the 12-point understanding,” Sharan said. “And in the case of army chief [Katawal]’s dismissal, we intervened to prevent that from happening. India did not want Nepal Army’s professional integrity invaded.” This is perhaps the first time ever that a high-level Indian official has spoken publicly about New Delhi’s intervention in the Katawal saga. He, however, said that it is best for India to step aside to let the internal dynamics sort out the domestic problems. “If stability is ensured in Nepal, it will be the only country in South Asia that has potential to prosper on its own with its huge resources,” Sharan added. “And India’s interest is to nudge Nepal towards realising its potential for development.” One of the contributors of the book Professor SD Muni said that India supported the 12-point understanding reached between the political forces in Nepal for strategic reasons and fear of internal Maoist problems, among others. The book, which includes contributions from more than a dozen Nepalis and non-Nepali writers, is edited by Sebastian von Einsiedel, David M Malone and Suman Pradhan. Nnnn INDUSTRIES IN TROUBLE WITH NEW NRB INITIATIVE- Kathmandu, 28 July: The central bank’s new provision regarding trust receipt (TR) loan has landed industries in trouble. According to a recent directive by the Nepal Rastra Bank (NRB), banks and financial institutions (BFIs) are not allowed to extend other types of loans to businesses to clear TR loan. If other types of loans are issued to clear TR loan, it should be categorised as non-performing loan (NPL), as per the new provision, The Kathmandu Post writes. Industries generally take TR loan while importing raw materials with pay back period of 90 days. They take short-term loans whenever they fail to clear the TR loan within 90 days. Industrialists argue that given the country’s very poor industrial condition, it is almost impossible to convert raw material into finished goods within 90 days and clear the TR loan. “It is impossible to run factories by taking TR loans for 90 days. Businesses were paying such loans within two to four months with the help of short-term loans,” said an industrialist. Pradeep Jung Pandey, vice-president of Federation of Nepalese Chamber of Commerce and Industries said that NRB’s new provision has come at the wrong time. “Productive sector is already going through a lot of problems,” said Pandey. “This provision instead of supporting productivity will have an adverse effect on industries.” He expressed fear that the provision, which came at the time of political instability, labor problem and power crisis, will take a heavy toll on industrialists. “In other countries, government provides facilities to productive sectors. In our case, they are affected from all sides,” Pandey added. According to an official from the Nepal Bankers’ Association (NBA), the change made in TR loan will definitely leave many industries in problem. “None of the factories can process the raw material into finished goods and sell them in the market in 90 days,” said the official. “At a time when the industrial environment is poor, this provision will further mar the industries.” The NRB, however, has said that it has asked bankers to suggest the central bank if the provision has created problems. “We have asked them to write us about the problem,” said Bhaskar Mani Gnawali, spokesperson at the NRB. “The latest change was made to address the misuse of TR loan.” According to NRB statistics, BFIs has extended around Rs 36.09 billion to various industries under TR and import loan by mid-May. Out of that, commercial banks have disbursed Rs 36.01 billion, with rest of the lendings extended from the development banks. Another NRB official said that the directive was issued to discourage the tendency of increasing the deadline of TR loan payment. “Most of the BFIs are run by the industrialists and they are complaining it as they are affected,” said the source. “It might take time to process the raw material into finish goods but it should not affect them in repaying term loan.” Some of the bankers have also welcomed NRB’s new move. NIC Bank CEO Sashin Joshi welcomed the NRB’s directive, saying that industries have other options and thus they will not be jeopardised by the new provision in TR loan. nnnn