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.
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.
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.
A parliamentary committee has
put an important report on seed sovereignty in the backburner, further
delaying process to draft legislation to protect seed sovereignty and
discourage import and use of hybrid products.
The report was sought by Committee on Natural Resources and Means (CNRM)
from the Agriculture Ministry following uproar over attempts to import
Monsanto hybrid maize seeds through a program of United State Agency for
International Development (USAID) for distribution to farmers last
September.
CNRM chairperson Shanta Chaudhari said her committee had not discussed
the report due to time constraint. "We are aware of the situation but
many other important tasks remain to be completed," Chaudhari said. "We
are hoping to call another meeting in this regard within few weeks."
Agriculture Ministry, which was allegedly involved in agreement with
Monsanto and USAID to import hybrid seed, was summoned by the committee
in January to clarify its position on seed sovereignty of the country.
Officials at the ministry said the report had recommended measures to
save the seed sovereignty by discouraging import of hybrid seed from
other countries. “We are waiting for another meeting of CNRM and further
direction on the issue from them,” Dr Hari Dahal, joint secretary and
spokesperson of the ministry said.
“The government won´t give subsidy to farmers while buying hybrid seed
that are not domestic,” reads the report prepared by the ministry. “The
government will also not compensate for the losses that may occur due to
unregulated import of hybrid seed ”
Nepal imports more than 200 types of hybrid seeds from 30 international companies through 13 domestic importers.
The report also draws a clear line regarding hybrid, genetically modified organism (GMO) and seed sovereignty.
The paper strongly says GMO should be banned in the country and only
domestic hybrid seed should be promoted, a sharp contrast to the
Agricultural Policy - 2004 which says the GMO should be regulated and
hybrid is promoted.
Twenty-six sick industries that
were expecting relief package from the government, particularly after
the Prime Minister instructed Ministry of Industry (MoI) last week to
announce the package, are going to be disappointed again.
Instead of coordinating with the concerned ministries that were involved
in working out the relief package, the MoI has decided to implement the
´incentives´ only after incorporating a provision of ´sick industry´ in
the new Industrial Enterprises Act (IEA) that it is drafting.
MoI officials say the ministry cannot implement the package, which
includes slew of incentives like taxi waiver, loans restructuring and
other procedural facilities for sick industries on its own.
“We will need to incorporate a provision of sick industries in upcoming
act before implementing it,” Umakant Jha, secretary of MoI, said,
indicating that the package will not be implemented anytime soon.
Jha said the ministry was preparing to get rid of legal hurdles so as to
implement the package as directed by the Prime Minister´s Office.
An eight-member taskforce comprising representatives from different
stakeholders, including National Planning Commission (NPC), Ministry of
Finance (MoF) and Nepal Rastra Bank - had prepared and submitted a
report on sick industries to the Ministry of Industry a couple of months
ago.
The report has labeled 26 industries, including Maruti Cement in Dharan,
Bhrikuti Pulp and Paper in Nawalparasi, Basulinga Sugar and General
Industry in Kailali and Shree Tiger Tops in Chitwan as sick units.
The ministry, which is supposed to be coordinating with all the line
agencies to provide relief to the sick industries as envisioned in the
report, is preparing to form different committees and technical teams
for implementing the report prepared by the team led by Dipendra Bahadur
Kshetry, vice-chairperson of the NPC.
"We will first incorporate the provisions for sick industries in the
upcoming act," Anil Kumar Thakur, joint-secretary of the ministry and
chief of the Industrial Promotion Division at the ministry, said.
“We are also in the process of forming a high-level team of legal
experts to eliminate legal hurdles for implementing the report.”
Thakur said the ministry will expedite the process of providing
incentives to the industries only after the draft of the act is
endorsed. The new act will replace the existing Industrial Enterprises
Act 1992.
The Ministry of Commerce and
Supplies (MoCS) has approached the Indian government to clarify new
terms of payment laid down by Indian exporters, under which they are
seeking Nepali importers to pay in US dollar if they are to get duty
exemption - a move which has brought imports of excisable goods from
India to a halt since last six days.
“We have formally approached the Indian counterpart for explanation
through diplomatic channel,” said Lal Mani Joshi, secretary of MoCS.
The ministry took such a step after local importers officially lodged a
complaint over the confusion they faced after Indian exporters asked
them to make payment in US dollars.
The confusion over terms of payment had surfaced particularly after the
scrapping of duty-refund procedure (DRP) system on March 1. Under the
system, India used to collect duty on excisable items exported to Nepal
and the government of Nepal that used to allow entry of those goods
without charging excise duty used to get the due excise collection in
the form of duty refund.
After the system is scrapped, the normal understanding between the two
governments was that India will allow its exporters to supply goods to
Nepal at ex-factory price (without excise duty) and the Nepali customs
would charge the due excise duty.
However, traders said the Indian exporters are presently demanding Nepali traders to make payment in US dollars.
“They (exporters) say they have been notified by the Indian authority to
supply goods at ex-factory price only if the payment is made on US
dollars,” said Pashupati Murarka, vice-president of Federation of
Nepalese Chambers of Commerce and Industry (FNCCI).
Murarka said Indian exporters are refusing to deal on ex-factory price when approached for payment in Indian currency.
As the DRP has been scrapped, traders won´t get payment of excise made to Indian supplier refunded.
“How can we pay excise in India and again in Nepali customs?” questioned
Murarka. “We can´t pay in US dollars also because Nepal Rastra Bank
(NRB) has opened US dollar payment facility for about 250 items.”
Interestingly, officials at the Indian Embassy said the term laid by the Indian exporters is not fair.
“Reserve Bank of India´s (RBI´s) guidelines has not been changed for
Bhutan and Nepal. This means Indian traders cannot impose payment terms
in USD to Nepali traders,” an Indian Embassy official in Kathmandu said,
preferring anonymity. “If what the Nepali importers are saying is true,
they should cite specific examples.”
Irrespective of what the officials said, Murarka said the stance of
Indian exporters has created confusion among Nepali traders. “This has
badly affected imports of cement, clinkers, textiles and vehicles, among
others,” he stated.
