Govt to provide collateral-free loan to women

Women who don´t have anything to pawn to get a bank loan and start a business should not worry too much now. The Ministry of Industry (MoI) is soon coming to their aid.

Yam Kumari Khatiwada, joint-secretary of the MoI, said the ministry has formally asked the Ministry of Finance to release Rs 10 million for establishment of the National Women Entrepreneurs Trust (NWET).

The ministry has asked for the fund as per the provision in the Industrial Policy 2010, which envisages establishment of the NWET.

"This amount will be used in providing loans to women who want to start businesses," she said.

The ministry had decided to issue unsecured loans to women following complaints from women entrepreneurs who said their access to collateral-free credit was very limited.

Initially, the ministry has decided to give away a credit of Rs 100,000 to 300,000 to every candidate. These candidates will be selected by a committee comprising representatives of different agencies including the industry ministry, the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) and Federation of Women Entrepreneurs Associations of Nepal (FWEAN).

According to Khatiwada, women who get the credit will have to pay back the principle amount and interest within two years of getting the loan.

These loans will come with an annual 10 percent interest. "But those who repay the interest in time will get a 4-percentage-point rebate on the amount," Khatiwada said, adding, that the amount accumulated through interest payment would go back to the trust.

The industry ministry has decided to mobilize commercial banks to disburse the loan amount. "In return, the government will provide certain fees to the banks for extending the service," Khatiwada said.

However, it is yet to decide on districts in which the program would be extended.

"Probably, we will focus only in two districts in the beginning," Khatiwada said.

Government wakes up to uphold consumer rights

In a bid to better protect consumers rights, the government has decided to make necessary amendments to the Consumer Protection Act 1998 and approve the Market Monitoring Regulation (MMR) through cabinet within this week.

The decisions were taken during a meeting held at the Prime Minister’s Office on Sunday. “The meeting has decided to complete these tasks within March 15,” one of the participants of the meeting told Republica.

The meeting, chaired by Chief Secretary Madhav Prasad Ghimire, was attended Home Secretary Sushil JB Rana, Commerce Secretary Lal Mani Joshi and Joyti Baniya, president of Consumers Rights Protection Forum (CRPF), among others.

“The meeting has also decided to monitor the market effectively,” Baniya said after the meeting, adding, “The decisions made on Sunday are in favor of consumers. We are looking forward to seeing the effective implementation of the decisions.”

According to Baniya, the endorsement of the act will also pave the way for establishment of Consumers Protection Trust (CPT) and Consumer Court (CC). The establishment of these bodies is expected to uphold consumers rights

The meeting also decided to enhance human resources capacity and other physical infrastructures, including vehicles, at the Department of Commerce, Nepal Bureau of Standards and Metrology, and the Department of Food Technology and Quality Control.

It also decided to give more power to market monitoring officers in districts so that they can take prompt actions against unscrupulous traders.

As per existing laws, market monitoring officers can only seal the shops found involved in black-marketing. They can take action against unscrupulous traders on the spot once the act is amended.

Consumers have hailed the government initiative to uphold consumers rights make market monitoring more effective.

“The government has finally taken the initiative to establish consumer court. It will uphold consumers rights and punish traders fleecing consumers in market,” Baniya added.

Two importers get supply against IC

After nine-day deadlock, when imports of excisable goods from India came to a grinding halt, some of the Indian traders have started exporting goods to Nepal against Indian Currency (IC).

Two Nepali importers, including United Spirits, finally received their respective consignments, one from Bhairawaha and another from Biratnagar customs, on Friday, said Pashupati Murarka, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

However, he said the Indian exporters dispatched consignments only after the importers pledged collateral (of additional payment). “They have promised to refund the collateral as soon as the confusion is cleared,” said Murarka.

FNCCI officials said they have no clue as to what led the two companies to supply goods against IC payment. “But we hope other exporters will resume normal exports against IC soon,” said Murarka, adding that most of the factories, which depend on imported raw materials from India are on the verge of closure due to shortage of necessary materials.

The import of excisable items have come to a halt particularly after Indian exporters laid new condition of payment since March 1, when duty-refund procedure (DRP) was scrapped.

Scrapping of DRP paved the way for Nepali traders to receive goods at ex-factory rate (devoid of excise duty) and government to collect excise duty at customs points, but Indian exporters said Nepali importers should make payment in US Dollar if they are to get supply on ex-factory rates.

“If paid in IC, our (Indian) government considers the supply as local sales, and seeks us to pay excise,” they had argued.

Importers could not oblige though as Nepal Rastra Bank has opened USD payment facility for about 250 items only. If they accepted exporters´ condition (while paying in IC), they were required to pay excise twice -- in India as well as in Nepal.

The confusion, meanwhile, has brought imports of industrial raw materials and other goods on which excise duty is applicable like cement, clinker, textiles and vehicles, among others, to a grinding halt.

Talking to Republica, he disclosed that a delegation of FNCCI had recently approached the Indian Embassy in Kathmandu to settle their problem. “The Indian officials conveyed us that India has neither changed payment terms nor should we deal in USD,” said Murarka.

An official of the Embassy said, Indian Ambassador to Nepal Jayant Prasad too has communicated to the Indian Ministry of Finance conveying concerns of Nepali importers. But he did not disclose how the ministry responded.

Ministry of Commerce and Supplies (MoCS) on Wednesday formally approached his Indian counterpart to clarify why Indian exporters have not been trading against IC. However, the Indian ministry is yet to respond.