NEPAL. INDIA AGREE TO WORK TOGETHER ON WATER RESORCES Kathmandu,, 26 Jan.: High officials of Nepal and India have agreed to move ahead by co working in water and energy Sector, RSS reports.. This was agreed in the seventh meeting of the Nepal-India secretary level Joint Water Resources Committee which concluded today [Friday]. The meeting discussed exchange of power between the two countries, building of inter-country transmission lines, Naumure Hydel Project, feasibility study of Saptakoshi High Dam and Sunkoshi Kamala Diversion, development of Pancheswor Multi-Purpose Project. and Koshi and Gandak projects, and India responded positively, said Energy Ministry Spokesman Sriranjan Lakoul. They agreed in cordial environment to move ahead on the compensation through the joint committee regarding the pre-established Koshi and Gandak projects as Nepali side raised the issue of compensation for the Koshi flood victims, on local obstruction seen in the Saptakoshi High Dam and flood control in Nepal-India border areas, he said. According to Spokesman Lakoul, they agreed in moving ahead embankment works with Indian cooperation in Western Rapti, Khando, Balan and Lakhandehi rivers and gearing ahead works with momentum including in Second Inter-Country Power Transmission Line, and formation of Pancheswor Development Authority (PDA). A 20-member Nepalese team was led by Energy Ministry Secretary Hariram Koirala and Indian Water Resources Secretary Dhruba Vijay Singh led the 12-member Indian delegation. Nepali delegation had high level officials from the ministries of Energy, Foreign Affairs, Irrigation and Water and Energy Commission Secretariat, as well as departments of Irrigation, Water Borne Disaster Control, Electricity Development, Hydrology and Meteorology, Nepal Electricity Authority (NEA), Pancheswor Multipurpose Project, Saptakoshi Multipurpose Project and Indian side was represented by the Water Resources Ministry, Indian Embassy, Indian Central Water Commission, Ganga Flood Control Commission, Uttarakhanda and Bihar government high officials and National Hydro Power Corporation officials. INFLATION SPIRALS Kathmandu, 26 Jan.:: Government has failed to crack the whip on rising prices besides its inability to increase spending on development activities in first half of current fiscal year, according to mid-term budgetary evaluation, The Himalayan Times reports.. The government has brought an interim public expenditure arrangement twice, in the absence of a parliament and consensus among political parties, and had promised to keep inflation within 7.5 per cent, which is looking up to 10.5 per cent by mid-January, according to the Finance Ministry that has reiterated to continue market monitoring to check the price hike. Likewise, the ministry has accepted that the lack of a full-fledged budget has contributed to the slowdown in the economy, hitting not only development activities but also regular expenses. “The government has been able to spend Rs 81.33 billion under recurrent expenditure, Rs 7.04 billion under capital expenditure and Rs 6.70 billion under Financial Accounts, amounting to a total expenditure of Rs 95.09 billion by the first half of the current fiscal year,” it added. “The ministry released Rs 95.83 billion in the period.” The government has, however, been able to exceed its revenue mobilisation target, it said, adding that the government has been able to mobilise Rs 134.56 billion revenue, though it had a target to mobilise Rs 131.88 billion revenue in the first half of the current fiscal year 2012-13. “Revenue mobilisation is some 21.20 per cent more when compared to the same period last fiscal year, and 102.04 per cent of its target.” Foreign aid commitment has, however, dropped. “The government has received a commitment of Rs 14.04 billion in grants and Rs 1.71 billion in loans, making it a total of Rs 15.76 billion in foreign aid commitment by mid-January.” The 32 commercial banks had Rs 20 billion liquidity by the end of the six months of the current fiscal year, the evaluation added. However, Balance of Payments (BoP) accounts — an accounting record of all monetary transactions between the country and the rest of the world — has seen a dismal performance. “The Monetary Policy had a target of Rs 30 billion surplus BoP by the end of six months but the country has only Rs 1.60 billion surplus BoP by mid-January,” it said, hoping that import substitution and export promotion will help meet the target by the end of the fiscal year. Likewise, the foreign currency reserve can finance imports of goods and services for 8.6 months, which is comfortable. Finance Ministry said that arrears clearance is also too slow as it could complete only 17 per cent arrears clearance against a target of 45 per cent. “Similarly, the ministry has also completed 401 Post Clearance Audits (PCA).” “Besides expanding the tax net, the ministry has expedited the Permanent Account Number distribution in the period, has investigated 1,363 tax payers and fixed Rs 4.86 billion tax for them, which is encouraging,” it said, adding that in the first half of the current fiscal year, some 8,304 have also been registered at VAT. nnnn MAOIST CHIEF CHARGES OPPOSITION FOR ATTEMPTED PEACE DERAILMENT Kathmandu, 26 Jan.: UCPN (Maoist) Chairman Pushpa Kamal Dahal has alleged that opposition parties were trying to derail the ongoing peace process by digging up the conflict-era cases, Republica reports.. Addressing the Kathmandu district convention of the party on Friday, Chairman Dahal also said Nepali Congress and CPN-UML had demonstrated fascist nature by trying to obstruct the Maoist district conventions. Dahal said that ongoing investigations into the killing of journalist Dekendra Thapa and the arrest of Nepal Army (NA) Colonel Kumar Lama in the UK on suspicion of his involvement in the torture of two detainees during Maoist conflict were a part of conspiracy to derail the peace process. While referring indirectly to the NC and UML, Dahal said that those who were raising the issues were ´traitors´ of the country. On the occasion, Dahal also said that his party is determined to take the Nepali revolution to its logical end. “If we try to conclude revolution in a traditional manner, this won´t serve anyone´s interest. Neither revolution can be concluded. Nor can there be a change,” he said. “It is, therefore, necessary to take the revolution forward in line with Nepal´s context. Our party is in that very process now.” Dahal also said that the upcoming general convention of the party being held after 22 years will be ´historic´ one. He said that the convention will help to further strengthen the unity within the party. Addressing the function, Prime Minister Baburam Bhattarai, who is also Vice Chairman of the party, said that government had successfully thwarted ´counter-revolution´ in the country. “Though the government has failed to do much, it has managed to thwart counter-revolution. We have to remain statisfied with what we have achieved so far,” he added. Bhattarai argued that his party has been attacked from all quarters and that the upcoming general convention will bring a new political line to thwart such attacks. Nnnn ________________________________________