Cover Story

Business Of B-schools (September 2011)

Nov 30, -0001 0 40 minutes 43 seconds to read

…

'We Are Compelled ToStudy Foreign Cases' (September 2011)

Nov 30, -0001 0 7 minutes 11 seconds to read

…

'MBA Has Become Competitive Now' (September 2011)

Nov 30, -0001 0 9 minutes 8 seconds to read

…

'Corporate EntitiesKnow The Importanceof Having MBAs' (September 2011)

Nov 30, -0001 0 7 minutes 21 seconds to read

…

'We Want Our MBA Graduates To Become Job-Givers' (September 2011)

Nov 30, -0001 0 11 minutes 38 seconds to read

…

Economic Policy Deflections (august 2011)

Nov 30, -0001 0 12 minutes 41 seconds to read

…

Sorry State Of SOEs (august 2011)

Nov 30, -0001 0 16 minutes 11 seconds to read

…

Policy Twists For Public Enterprises (august 2011)

Nov 30, -0001 0 4 minutes 49 seconds to read

…

What’s Wrong With Public Enterprises? (august 2011)

Nov 30, -0001 0 7 minutes 22 seconds to read

…

International Privatisation Trend (august 2011)

Nov 30, -0001 0 18 minutes 24 seconds to read

…

Demand And Supply (july 2011)

Nov 30, -0001 0 15 minutes 47 seconds to read

…

SHADOW OF ENERGY (july 2011)

Nov 30, -0001 0 8 minutes 28 seconds to read

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Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)

Nov 30, -0001 0 11 minutes 29 seconds to read

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'The Accessibility, Impact And Applicability Of Renewable Energy Is Ever So Growing' (july 2011)

Nov 30, -0001 0 10 minutes 59 seconds to read

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URBAN HOUSING HOME IN HIGH-rises(june 2011)

Nov 30, -0001 0 16 minutes 5 seconds to read

…

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No Laughing Matter

The Sweet Rewards of Power

By Madan Lamsal

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NEPSE

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		'Article' => array(
			'id' => '473',
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			'title' => 'Business Of B-schools (September 2011)',
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			'content' => '<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">By Gaurav Aryal</span></strong></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" height="252" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/sep-cover.jpg" style="width: 251px; height: 252px;" vspace="10" width="251" /></span><span style="font-size: 14px;">During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly trained human resource in the field, the management education also thrived as the business in itself. The growing number of banks, financial institutions, corporate houses and increased awareness about the need for modern management expertise to run any commercial&nbsp;venture fueled the growth in management education. Private sector investment in setting up the state-of-the-art institutions and immensly improved quality of education indeed have had multiplier effect in adding attraction to both-investors and students. More than&nbsp;one and half dozen colleges affiliated to three universities - Pokhara University, Purbanchal University and Kathmandu University (KU) - are running either Master in Business Management (MBA) or Executive MBA (EMBA) or both. Though the Tribhuvan University (TU) has not introduced any of these courses, it is running Master in Business Studies (MBS) for decades now. TU plans to introduce an MBA programme in the near future. All these universities also run Bachelor in Business Management (BBA), a four year course while TU has Bachelors in Business Studies (three year course) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A few years back studying medicine was supposed to be the most prestigious academic pursuit for a whole lot of students and guardians. Today, the market demand, expansion of career prospects in management sector, growing importance of human resources in companies and distinct teaching-learning methodology are luring more students to management education, perhaps, more than in any other discipline. Nepali universities are also working hard to produce quality managers to compete in the market where top-notch managers are still mostly from foreign universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The History</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management education began in Nepal in the form of commerce education in 1954 with the establishment of commerce department in government-owned Tri-Chandra College. The college had introduced Intermediate of Commerce (ICom) and Bachelor of Commerce (BCom) programs with 27 and four students respectively. The programme was affiliated to an Indian university till the establishement of Tribhuvan University (TU) in 1959. The following year, in 1960, TU began offering post-graduate programme in commerce called Master in Commerce (MCom) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Bijay KC, the Dean and Professor at South Asian Institute of Management (SAIM), says introduction of National Educational System Plan in 1971 proved a milestone in the evolution of management education in the country. TU set up Institute of Business Administration, Commerce and Public Administration. This institute was renamed as Institute of Management in 1976. It is now called Faculty of Management (FOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal National College (later renamed Shankar Dev Campus), Public Commerce College (Kathmandu), Nepal Commerce College (Lalitpur), Thakur Ram College (Birgunj), Mahendra Morang College (Biratnagar) ruled the roost for a long period in the management education of Nepal. Numerous prominent business persons&nbsp;and management gurus were educated in these colleges. These colleges were later brought under the direct control of TU (as TUâ€™s constituent campuses) following the introduction of National Education System Plan of 1971.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That system of complete state control on education was withdrawn in 1979 and TU started granting affiliation to colleges set up by the private sector. However, it was only after 1991 (i.e. after the advent of multi-party democracy) that there was real growth of colleges from the private sector in management as well as in other types of higher education. That was the year when Kathmandu University (KU) was set up. KU set up Management School (called KU School of Management or KUSOM) in August 1993.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That was followed by establishment of Purbanchal University in 1995 and Pokhara University in 1996. Thus, there are four universities in Nepal now providing management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These universities are competing to introduce new tools and techniques in management education. For example, MBA with modern teaching-learning methodology and accordingly courses designed at these universities have helped maintain almost global standards in upper-level management education. A new brand of MBA â€“ EMBA has been introduced recently targeting practising managers. This management programme has been introduced in several private colleges affiliated to Pokhara University, Purbanchal University as well as the central college of KU called KU School of Management (KUSOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As of 2009, TUâ€™s FOM had 28 constituent colleges and 506 affiliated colleges. The latest entry (August 2011) in the website of Pokhara University shows that it has over ten colleges affiliated to it for different types of management education in the Bachelorâ€™s or Masterâ€™s level in addition to its central campus of PU School of Business. Similarly, KU has three colleges affiliated to it for such courses in addition to its central campus KUSOM. Purbanchal University has over 35 constituent or affiliated colleges for such programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These colleges offer such courses as Master of Travel and Tourism Management (MTTM) at the Masterâ€™s level in addition to MBA, MBS and EMBA. At the Bachelorâ€™s level, there are other specialised programmes as well in addition to BBS and BBA. The examples are Bachelor in Hotel Management (BHM), Bachelor of Information Management (BIM), Bachelor of Travel and Tourism Management (BTTM), Bachelor of Business Information System (BBIS) and Bachelor of Commerce Studies (BCS).&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, despite such growth in management education in Nepal, a large number of Nepali students are still going abroad for management education. While that shows the growing demand for the higher education in management science, it has lured a number of foreign institutions to set up their campuses in Nepal or forge partnerships with Nepali colleges or universities.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Growth</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Saroj Dhakal, Management Faculty at the recently established CG-CEDEMAS Institute of Management (CGCIM), feels MBA has now become a most sought after brand amongst the ones aspiring to make career in financial or managerial fields. This institute is a joint venture between Nepalâ€™s one of the porominent business houses Chaudhary Group and Englandâ€™s Centre for Development Management Studies (CEDEMAS).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Colleges offering MBA, EMBA or both degrees</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 424px; height: 987px;">
	<tbody>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">S. No.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Name of College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Affiliation</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">2.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Ace Institute of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Apex College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">National Open College (NOC)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">5.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Uniglobe College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University-Faculty of Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">7.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">8.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu Don Bosco College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">9.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Novel Academy</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">10.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidency College Of Management Sciences</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">11.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Zenith International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kantipur Hotel Management &amp; Interior Design College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">13.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">DAV College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">14.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Topper Management College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">15.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">White House Graduate School of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">16.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Campion Kathmandu College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">17.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Birganj Public College, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Maharaja Agrasen College of Management, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">19.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Management Campus, Biratnagar</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">20.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Bebasthapan (Sang) College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">21.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">King's College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">22.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidential Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nova International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">24.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Lord Buddha Education Foundation (LBEF)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Sikkim Manipal University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">25.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International Center for Academic College of Distance Education &amp; Online Studies(ICA)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">26.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Information Technology</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">27.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Institute of Banking &amp; Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Bharathiar University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">28.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">KFA Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Vinayaka Missions University (India)</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Apart from the banking and financial system, the demand for professional managers is equally strong in other sectors like tourism and hospitality, energy, agriculture, public sector and others.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As the reasons for growing attraction and development of management education Dr Bijay KC lists development in infrastructure over one-and-a-half decades, change in the trade and occupational patterns in Nepal, growth in media, information technology and development of financial sector, among others. MBA and EMBA graduates are more in demand in the private sector than in the government. KC feels that globalisation and liberalisation have spurted the demand for quality managers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Prof Dr Geeta Pradhan, Dean at Faculty of Management Studies at Pokhara University, says â€œThe growth of banks and corporate houses has definitely added attraction to management studies in the country. Similarly, MBA teaching methods has several in-built practical approaches with internships, project works and case studies.â€ She thinks such approach of teaching-learning methodology produces graduates that are competitive in the work environment and turn out to be capable managers. She added, â€œManagers are required in every field â€“ hospitals to corporate houses. This has created the demand for management graduates.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, Prof Dr Dev Raj Adhikari, Head, Central Department of Management, Tribhuvan University, says that the current growth is not of the actual business schools but in the business studies. He gives credit for this to leading four universities for the growth. He says, the number of students and resource persons is growing along with the demand for competitive human resources in the market that is also growing. Adhikari says, â€œManagement education has improved in terms of both quality and quantity.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<strong><span style="font-size: 14px;">Student Psyche</span></strong></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">MBA students are often tagged as job creators in foreign universities for their attitude summarised as: â€œWe donâ€™t seek job. We create jobs.â€ However, that attitude is not so common among Nepali students. Pradhan says, â€œStudents are not sufficiently eager and positive towards setting up their own business. When I encourage my students about coming up with such ideas, I donâ€™t see enthusiasm in them. I think they are quite lazy. Working in a bank is considered prestigious while setting up a farm by an educated person is not given respect in our society.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says, â€œMore than 95 per cent students are job seekers.â€ He says it is engraved in our culture to search for jobs rather than create one by taking risk of being an entrepreneur. However, he shares some examples of his students who are willing to take up an entrepreneurâ€™s career. â€œSome MBA graduates have established their own cooperatives and finance companies, which is quite positive.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Subas KC, Dean of KUSOM, says that most of the students in his colleges are from well-off families and they prefer easy desk jobs in banks rather than hard work, of setting up companies and being an entrepreneur.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Social psyche, parentâ€™s expectation, socialisation and schooling are blamed for this mentality of job seekers rather than job creators. In fact, MBA courses are not designed to produce graduates who seek jobs but it is designed to produce managers and entrepreneurs. Risk taking attitude is said to be missing among students and aspiring entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dhakal however points out that the level of risks to be shouldered in our society is higher than in other comparable countries including in the immediate neighbourhood. Lack of security, extortions and unfavourable investment environment are driving away graduates from setting up their own business, he argues. Julie Peters, Project Director CGCIM, says her college provides incentive to students with best ideas to set up their own business at the end of their studies to promote entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Curriculum</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management course covers a wide range of disciplines with focus on marketing, human resource management, organisational behaviour, and strategic management among others. Apart from these, mathematics, psychology, sociology, philosophy and economics are taught in the classrooms to the graduate students. These courses expect students to understand and manage the literally all operational aspects of the organisation. Management studies enhance the managerial skills by sharing of ideas, healthy discussions and project works, say experts.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari, who is also the President of Nepalese Academy of Management, said MBA course is designed to understand the changing perspectives in the business. MBA graduates are expected to understand new definitions and programmes, think strategically, make decisions and have a practical approach to any problem. The aspects make them expert managers and business leaders.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Number of Management Colleges</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 401px; height: 246px;">
	<tbody>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Courses</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Tribhuvan University</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">533</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">35</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">45 in operation out of 90</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">EMBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari shared, â€œGeneral Motors of USA has devised three â€˜Tsâ€™ concept for its human resources - technology, talent and transformation. We need MBA graduates for such transformations.â€ He adds that MBA course in Nepal is devised to produce capable leaders who can understand and cope up with new advancements and plan, organise and execute accordingly. â€œMBA is not introduced only for the sake of MBA. It was introduced to support the emerging economy by developing such human resources that can meet the requirements either through a job or entrepreneurship,â€ he said talking about TUâ€™s management programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Scholars accept that the masterâ€™s level curricula on management of Nepali universities are that of the international standards. However, they often question about the way it is delivered to students. Dr Bijay KC said, â€œThe system we follow is more or less the same as in foreign universities. Many universities have accepted the credits our students have achieved primarily due to the courses we teach. Semester system, alphabetical grading evaluation, standard text books used here are similar to western system. In some cases, students may have to take some test/examination which, I think, is normal practice everywhere for any&nbsp; foreign student.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors think that the main gap is in the teaching-learning methods. KC explains, universities have the same curricula that cover human resource, finance, marketing, organisational behavior, economics, quantitative techniques, strategy, environment and management information system with more or less similar contents.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari and KC share the similar view that most important is the treatment of the course and its delivery in the classroom, the quality of faculty, the pedagogy used and practical exposure that the students gain during the course.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Teaching-Learning Methodology</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The classes of TU MBS are mostly based on the lecture method. However, the colleges under other universities have adopted more practical and participatory methodology to teach in MBA level. These days, traditional teaching-learning method based on lecture is deemed obsolete for any discipline. For management studies, active participation of students in group work and more practical approach, along with observatory methods are considered appropriate. In an MBA class, teacher and students challenge statements, attack and defend ideas. Inclusion of other approaches plays an important role in the learning process.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says the central department of management is forced to adopt the traditional method of lecture as they have a huge number of students â€“ around 200 in a single class. He says this simply makes impossible to adopt the other style such as group discussions, presentations, case studies, etc.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Peters of CGCIM opines, â€œPurely academic approach will not work. The MBA course must take an approach of looking at company case study and the actual issues in that company and how they address those issues. Theories may come later. Theory is something managers already know from their experience but they donâ€™t realise that they know.â€ Dhakal from the same institute argues that for a class to be participatory and active, students too must have some kind of exposure and experience. â€œBut Nepali students are straight out of the undergraduate colleges, so the teaching methodology is confined to theories alone,â€ he said. Internationally, students can enrol into MBA course only after practical experience of a couple of years as a manager.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">An appropriately designed MBA curriculum demands for more participation, personality development and attitude development. So, the classroom must be synchronised accordingly. After graduation, students enter the job market. So, the colleges must be producing graduates who can face the real working environment. Adhikari believes, â€œTeaching-learning methodology plays a pivotal role in bridging the gap between classroom and workplace. Such environment in the class must be ensured so that they can adapt to the work environment the very next day.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the business schools have tried to revolutionise the classrooms. They have introduced the concept of dual faculty in a class. Along with an academician, a professional contributor takes a class. Academician deals with the theory while the professional contributor shares his supportive working and real-life experiences. Such professional may be a Chief Executive Officer or Human Resource Manager of a bank or a corporate house.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Most graduate schools of management implement project works, participatory techniques, encourage team work, case studies and field visits and some invite visiting faculties from foreign universities. Similarly, games, participatory techniques and decision making opportunities are frequently practised in graduate schools.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">International Recognition</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The validity of degrees from Nepali universities is often questioned in foreign universities, mostly in the US and Europe. The courses adopted here, teaching method, curriculum, assessment criteria are mostly blamed for the failure of giving equal recognition to our degrees. Nepali masterâ€™s degree holders from any university mandatorily have to take up some kind of foundation course or additional credit hours in those foreign universities for them to get recognised as MBAs for employment and further degrees. Moreover, the competency of our colleges and students with the international counterparts can also be often questionable.&nbsp;Experts believe our universities and management institutes cannot be compared to the quality being offered by some universities and institutes in India and the US. However, we have been successful to devise the curriculum that is at par with the international quality for MBA as well as BBA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case of MBA, a student requires to meet certain requirements in USA to get enrolled. Unlike here, a student must have two years of work experience and must appear in the GMAT test before admission. Adhikari points these as some of the reasons why our degrees are not directly recognised internationally. However he claimed, â€œAlthough there is no direct recognition, our education is not derecognised anywhere in the world. After meeting some of their criteria like additional courses and credit hours, our degrees are largely recognised.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">One of the reasons Nepali young generation prefers foreign or international degrees to pursue MBA is the issue of recognition of our degrees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Foreign Affiliation</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A number of Nepali institutes and colleges have now presented an option to acquire foreign degrees while being within the country. However, most of these colleges are centred in the capital city Kathmandu only. It is not only the Nepali colleges that are willing to bring in foreign affiliations, but also foreign universities are interested to have Nepali affiliates. The reason is the attraction of Nepali students for international degrees and thus the potential market for those colleges.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">CGCIM is the latest institute to offer post-graduate diploma affiliated to Centre for Development Management Studies (CEDEMAS), UK. Dhakal of CGCIM says that the institute was established with the idea to provide teaching in Nepal by foreigner professors. He said, â€œThis is the concept of providing a world-class degree from Nepal. Instead of students going abroad, professors come here to teach and the cost is relatively very small for the students.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Similarly, colleges like KFA, Institute of Banking &amp; Management Studies, Lord Buddha Education Foundation and some other are affiliated with Indian universities. Kingâ€™s College, Presidential Business School, Nova International College are affiliated to International American University, USA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the quality of the affiliated university is also questioned by professionals in management and business studies. KC of KUSOM said, â€œUniversities that Nepali colleges are affiliated to are not much heard-of. Such co-operations will not contribute much to the development of management studies. It will be really praiseworthy if colleges can bring in affiliations from top universities like Harvard, Oxford or any other well-known universities or even Indian Institute of Management.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although the trend of getting affiliation with foreign university is increasing, the government universities are not feeling any threat. Adhikari of TU said, â€œNepali universities are in the forefront on the basis of competition and curriculum. We have much better course design that is customised with Nepali culture, system, economy, situation, need and expectation of the market.â€ Most of the foreign affiliations are based on the distance learning mode.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Sponsorship</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Funding students for business and management studies in Nepali college is not much practised by corporate houses. However, some corporate houses have financed a few students in some leading colleges. Apart from that there is also a trend to send the employees of the corporates to Indian colleges and institutes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors do not think that corporate houses are sending students abroad due to the crisis of trust on Nepali colleges. They believe it must be because of some extraordinary qualities that they cannot find in Nepali colleges but see in foreign ones.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However Adhikari says, â€œCorporate houses are not investing in HR for academic programmes. I have not found a single student sponsored by corporate houses.â€ Even in EMBA, which is meant for working managers, students are studying under self-financing. According to Adhikari, in other countries, EMBA students are compulsorily sponsored by employing organisations.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">EMBA</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is the course designed for working professionals who want to improve their leadership and management skills. It is relatively a new course introduced in Nepal. This programme is said to help managers learn, grow, and change in their career while working. It is the only post-experience management degree as the MBA here does not need any prior work experience.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is a two years course based on semester or trimester system. The course aims to enrich both theoretical and practical knowledge. The course requires being changed and updated to keep up with pace of the evolution in the market. Students of EMBA believe it helps to tackle the challenges they face in managerial profession that keep on arising at work. The course content of EMBA is quite similar to that of MBA with more priority on the practical aspects. EMBA colleges adopt case study, participative method, group discussions, presentations, field visits, project works as their common methods of teaching-learning, supported by lectures.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Three universities â€“ KU, Purbanchal and Pokhara University â€“ are offering EMBA courses. KU has it in its own campus â€“ KUSOM while Pokhara is offering it in its central campus as well as affiliated colleges and PU is providing it through its affiliates. Assessment criteria applied in these universities is a mixed bag of practical and theoretical written exams. Moreover, most colleges have implemented the overall performance evaluation for the grading system that is usually alphabetical.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Career Prospects and Recruitments</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management and business graduates opt for career in the financial sector which is at present the major job market in Nepalâ€™s formal sector. Students do not much prioritise other sectors than the financial institutions as their career area. Only a few students take the path of self-employment and job-creation through entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Joint venture companies are also becoming the target areas of MBA graduates for jobs. Meanwhile it is expected that the service sector, which is growing fast, will certainly attract management graduates. KUSOM has its own employment cell to coordinate job placements. Ace Institute of Management too has similar kind of on-campus and off-campus placement mechanism. Dr Subas KC said that students used to be hired by well-known corporate houses in bulk when KUSOM was the only college to offer MBA. However, bulk hiring is not much practised now, companies still reach the college searching for suitable MBAs. Apart from students searching for jobs, companies too come searching for their probable employees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although it is not so difficult to secure a job after MBA, the facilities, working environment and remuneration are quite low compared to their qualification. Dr Geeta Pradhan accepts that management graduates are not getting the pay in Nepal that they deserve.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In our market, performance-based pay is less in practice. The flat industrial pay scale is common. Although pay is determined by several factors like economy, industrialisation, market, countryâ€™s status, personâ€™s productivity and efficiency, it is believed that most appropriate pay system is performance-based, that is what exactly is missing here in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Future</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal being a growing economy, it is certain that the need for professional managers will grow in almost every sector. With the creation of job and growth of market, management graduates will be demanded by both private and public sectors. There are sectors like hydropower might just gradually open up as attractive jobs for new graduates The job market that is confined to the banking sector is certain to expand with more joint ventures coming, growth of service sector, more industries and growth of market.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That will lead to more demand for management graduates and management schools that produce top-notch managers. The collegesâ€™ changing trend shows that they will be able to manage to cater to the demands of the market and time. For that, the teaching-learning method has to change for the better. Similarly, the research practice that is missing among the professors must be developed. Rather than studying just what is happening in the outside world, management schools must be capable to address the evolving Nepali market realities. Without researches by the universities and professors that is almost impossible to do.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Moreover, MBA colleges are blamed for utter commercialisation. To revolutionise the management studies, they require to rise above the worries of profit and loss and dedicate themselves to bring in professional management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Experts opine that the concept of business school in true sense of the term is yet to come to Nepal. Business schools are more autonomous with definite vision, mission, and goals and operate accordingly. Adhikari says that such schools have distinct identity and existence. â€œTU is planning to develop the concept of business school. The only question is the extent of autonomy.â€ He thinks that MBA colleges are coming just for the sake of money without caring to meet their social responsibilities. The courses and academic studies must address the current needs of the country. â€œBusiness schools just with the aim to get students for the sake of business will not sustain in the future. They must take ahead business education with national and international perspectives in mind and by charting out clear vision, mission and leadership,â€&nbsp; he suggests.</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;"><br />
	</span></h3>
<h3 style="color: blue;">
	<span style="font-size: 14px;">* Alumni Speak *</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sujan Raja Shrestha received an MBA degree from Kathmandu University School of Management (KUSOM) in 2000. Currently a Management Consultant with Smart Food &amp; Snacks Pvt Ltd, he also manages his own business ventures â€“ Sovereign Education Network and Barahi Eco Farming Company.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Having started his professional career as an employee in various companies, he has come full circle in his decade-long professional journey. He says, â€œI have learned much and had the opportunity to implement management skills over the years.â€ Shrestha takes pride in having reached the companies he worked with (Himalayan Snacks, Smart Food etc), to new heights. He emphasises that a corporate entityâ€™s success is the result of team work to a large extent. And almost in the same breath, he doesnâ€™t forget to remind, â€œTo manage and mobilise a team well enough to obtain maximum output, we require excellent management skills.â€ He adds that these skills can be learnt and it certainly helps having a management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Shrestha believes that one must not pursue management education, particularly an MBA degree, only to find better employment or to get a promotion. â€œThe knowledge a student gathers while studying management builds his/her analytical skills better than ever before and pays dividends over a long period of time,â€ he explains. He opines that a competent management education helps students make more informed decisions with a greater probability of success.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A firm believer of blending theory and practice in management education, he expresses confidence that having successfully completed their MBA programme, the students can choose any business or profession they have their heart for and want to excel at. Shrestha hopes that most management graduates will ultimately turn employers rather than remaining employees for life. â€œI look forward to the current crop of MBAs to turn entrepreneur after getting a few years experience so that they can create jobs for others and become more productive and constructive,â€ he concludes on an &nbsp;optimistic note.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Subodh Sharma Sigdel completed his MBA (Finance) from Nepal Commerce Campus, Tribhuvan University in 2000. He also attained an additional degree with an MSc in International Banking and Finance (IBF) from University of Greenwich, London in 2010. He is currently the Chief Executive Officer of CDS and Clearing Limited.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sigdel was in the early phase of his banking career when he completed his MBA in 2000. The qualification helped him become a good leader and taught him skills related to conflict management, team motivation, plans and programmes preparation, effective communication and overall managerial acumen. After working in the banking and financial sector for more than nine years, he realised the need to get another degree that specialised in his working arena. Hence, he opted to obtain a degree in International Banking and Finance from the University of Greenwich in London. â€œThis degree has given me an excellent opportunity towards shaping my career,â€ he observes. Meanwhile, Sigdel also ran a trading institute where he trained commodity and stock investors about investing money in the market. He has been recently appointed the CEO of the first ever CDS company of Nepal, CDS and Clearing Limited which is an integral part of the capital market. â€œStudying subjects like International Capital Market and Financial Trading Techniques immensely helped me in bagging this coveted position. Besides, the IBF degree helped me with my policy making role and supervisory activities,â€ he reiterates. He credits his MBA (Finance) degree for building his career while being grateful to the MSc (IBF) qualification for shaping his career in a better direction.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€œManagement education has become extremely important for students aspiring for a career in management,â€ Sigdel asserts. He suggests that students should pursue a management degree because the market holds enormous opportunities for trained professionals. He adds that management career, today, is not limited to the banking and financial sector only. â€œCareer choices for management graduates are widening these days with new companies like Central Depository System, Commodity Exchanges, Credit Rating Agency, Mutual Funds and the concept of working as Commodity and Stock Trading Members have emerged in our economy,â€ he points out. Since these companies demand huge workforce, Sigdel advises students to attain relevant management education and fashion successful managerial careers for themselves.</span></div>',
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			'description' => 'During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly.......',
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	(int) 1 => array(
		'Article' => array(
			'id' => '472',
			'article_category_id' => '40',
			'title' => ''We Are Compelled ToStudy Foreign Cases' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Prof Dr Geeta Pradhan</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dean, Faculty of Management Studies</span><span style="font-size: 14px;"><img align="right" alt="" border="1" height="215" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/geeta pradhan(1).jpg" style="width: 166px; height: 215px;" vspace="10" width="166" /></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Pokhara University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR (Human Resource) Management and MBA in Management Information System. These courses produce expertise that is required for any corporate house or enterprise. Other course that I want to introduce is a Masters programme in Public Policy. I think the current education does not well equip those going for government and civil services.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There is a remarkable growth in management colleges and students in Nepal. When I joined Pokhara University, there were very few students. In 2008, there was just one student in MBA. In Pokhara, there was a belief that MBA will not succeed. With the help of some officials from the university, I visited banks, institutes, chambers of commerce for searching students. They all assured to cooperate. Then, we received applications from 80 candidates while we had only 50 seats. At that time in BBA, the dropout rate was high. Admission was announced thrice for one BBA session. The growth of banking sector has also created demand for capable managers. Management studies with practical approach of teaching like internships, project works have helped graduates to contribute competitively in the organisations. Hence, there is growth in attraction to these courses and management schools.This course produces capable human resource and managers who are required in every field â€“ hospitals to corporate houses. Emerging financial institutions and corporate houses have also increased the demand for management graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sending students to study in foreign colleges. Does that mean they donâ€™t trust our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is not that our education is bad but we have not achieved their level, which we can achieve easily. I blame our attitude to ignore rules, regulations and the system. Despite having excellent course design, students are not able to perform well. If they can work accordingly, they will be capable, honest and manage their time efficiently.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBA graduates seem to be targeting a job in banks. Are the MBA courses designed for that only? Do you see any&nbsp; misconception in students?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That is a misconception. The MBA is for producing capable managers and entrepreneurs. Our society does not respect all kinds of works. Table work is always considered the best job but running a farm is taken in a different way. Bank jobs have become a symbol of prestige now. Very few students think of setting up their own businesses. I encourage students to find out ways to use hot natural springs around Pokhara and prepare proposals but I think students do not have positive attitude for such creative works.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Case study is what foreign universities opt for teaching. It is said that we donâ€™t have much cases within our country to study. Are we forced to study only the foreign cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case studies, frankly speaking, the trend of case writing is missing in Nepal. In my university too, we employ the case study method, which is a foreign concept. Good cases from Nepal are not being written. There are some professors who write them but still good cases are missing. We often encourage writing them but professors for some reasons are not willing to write them. I think they feel lazy. I feel we donâ€™t have a tendency to be competent and do something different. So, we are bound to study foreign cases though we have enough cases and examples in our own surroundings.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is our curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The curriculum suits the typical business environment of Nepal. However, the dialogue between academia and business is missing. Business is heading in one direction while business schools are in another.&nbsp;I often tell business houses to exchange resources but I donâ€™t know why it is not been possible to find a working chord.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Curriculum and teaching-learning methodology of Nepali colleges and universities are&nbsp;said to be traditional. What is your university doing to update your curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is true that we have traditional method of teaching and learning. For bringing some changes, students must have exposure and the teachers too need to have some inputs. They teach only what they have studied. That makes it quite difficult. When visiting faculties are selected I prefer MBA graduates from America. They have exposure to different methodologies and it is definitely different than teachers who got education here. We are revising the curriculum even of BBA and that has been approved by the subject committee. We have also included the course of business ethics. We continuously go on revising the curriculum.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the course bridge the gap between real life work place and the lessons taught in business schools?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If there were more teachers who studied in foreign universities or from abroad, bridging the gap between classroom and the real world would have been much easier. There are many constraints. When we ask students to go for some field visits they ask the university to bear the cost. That is a hindrance. To some extent, students also need to bear these expenses when it is useful for their studies and career. I think many do not understand the concept of university. In university, students are required to manage some expenses for themselves. What they do and what they learn in classroom is reflected in the real working environment.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Nepali universities are said to have weak management and the basics like exams and results are not conducted on time. What is the main problem?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The management is not a total failure but it is also true that it is quite weak. The management is unable to enforce the rule upon students and their unrealistic demands are not suppressed. In some cases, colleges themselves are involved in encouraging students for demonstrations to change the date of scheduled exams. They reason, the course is incomplete. I think infiltration of political elements in colleges is guiding it. But we have tried to bring the session back on track by cancelling vacations. The situation is gradually improving because we are also taking firm decisions. I think one of the reasons behind such practice is, most of the time students are enrolled without proper selection due to various reasons.</span></div>',
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			'keywords' => '',
			'description' => 'New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '471',
			'article_category_id' => '40',
			'title' => ''MBA Has Become Competitive Now' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dev raj adhikari.jpg" style="width: 190px; height: 245px;" vspace="10" /></span><span style="font-size: 14px;"><b>Prof Dr Dev Raj Adhikari</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Head, Central Department of Management</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Tribhuvan University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU) - the oldest one in the country - are contributing to the growth of management studies. Along with the growth in number of students and faculty, there is also the growth in demand for the products in the market. Market is also growing. Currently, we can see quantitative growth but there is impressive qualitative growth too. Recently, a report of Ministry of Education has revealed that the number of students going for foreign education has dropped. Management education has grown both qualitatively and quantitatively.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are talking about globalisation today. That automatically reflects in our curriculum. Our curriculum cannot always be taught in the same old traditional methods because our students have to compete in the international market. The demand is growing for&nbsp;change and advancement in the management studiesâ€™ curriculum. The teaching-learning model also needs to be reformed. Some schools have adopted really good methodology but in our MBS, we have not been able to achieve the global standards due to a large number of students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How have the management schools tried to change the traditional practices?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the institutes are practising methods like project works, case studies and participatory techniques in classrooms. They are encouraging team work and group work. Students are often taken for industrial tours and field visits. Professionals and entrepreneurs are giving lectures while visiting faculties are being sourced from foreign universities. These are now being practised in Nepali colleges. They are trying their best because they are getting money and need to satisfy the parents and students. I have seen bank CEOs addressing the classes. Some institutes even have the system of dual faculties in which one is academician while the other may be a professional. Academician teaches theory while the professional shares his real work-life experiences. He may be the HR director of a certain bank or even a CEO. Now, MBA has become competitive. Market will judge in the future if one can or cannot deliver. Teaching-learning method is not that much traditional as in the past. In MBS, traditional method is also being used. The most popular method in the world is the lecture method. When the classroom is small and focus is on a particular group, we can go for case studies, game theories, project works, participatory techniques, create decision making opportunities. But in a large class, the same is not possible. It is being traditional because we donâ€™t have environment to use new tools and pedagogy. Some classes are traditionally run but the cases have changed a lot compared to the past. In the coming ten years, there will be a lot of changes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our competency compared to the level of regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is very difficult to say what exactly is our competency compared to other universities, especially those in India. Currently, in the growth of Indian management education, quality is especially seen in state universities and management institutes like IIM, Ahmedabad. We have not reached that level of quality in education. Here, Pokhara, Kathmandu and Purbanchal universities are leading in MBA. They have changed with time and have created the course well with a lot of planning but so far the implementation is missing. We are lagging behind in regional and international perspectives. But the TU MBS can be easily compared to Indian quality. Curriculum is good and our MBS course can be compared with good universities in India. So, what we can safely say in MBA we still have to do a lot of things because growth in business here does not have the same pace as in India. Our internship level can by no means be compared with theirs. We have also not been able to provide facilities and educational environment that Indian MBA students get. In such a case, we canâ€™t compare with them. Nevertheless, we are trying our best; our universities are trying for something similar.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Are our colleges, courses and degrees internationally recognised?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">TU is recognised worldwide as the largest university of Nepal. Any masterâ€™s degree holder from TU need to do further studies if he wants to pursue further studies in the US. MBS graduates again need to do MBA there. In USA, to do an MBA, one must compulsorily have two years of work experience but it does not apply here. And they must also appear in GMAT. Here one can directly join MBA after bachelorâ€™s degree. So, there is no direct recognition but our education is not derecognised anywhere in the world. Though they donâ€™t give exact equivalence, after completing some credit hours and some courses, our degrees are recognised well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We should try to develop professional entrepreneurship as well. It is engraved in our culture that after completion of studies, everyone must do some kind of job. Everyone expects to get a good job. But there are some students who really want to develop as a professional or an entrepreneur. Some of my own students are aiming to create jobs through their entrepreneurship. More than 95 per cent students are job seekers either in national, Indian or international markets. But only a few are willing to develop as a professional or an entrepreneur. Some MBA students have even established their own cooperatives and finance companies.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the management course bridge the gap between real life workplace and the lessons taught in classrooms?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We need good teaching-learning method to bridge the gap between classroom and the workplace. The environment in the class must be such as the students can begin working immediately after completing the education and can adapt to the work environment. Similar kind of pedagogy, customisation and workplace-friendly curriculum must be selected. Then, we need the curriculum in accordance to the business expectation. That will bridge the gap between the classroom and the workplace otherwise there will be a difference always. If we can not bridge this gap, organisations will have to invest a lot in training and development of the new recruits from the management stream. So, these days, management colleges are focussing on training for a banking career to MBAs as the banking and finance sector is our major job market. If the gap is to be bridged, we have to make the classroom workplace friendly and design the curriculum accordingly. We have that curriculum but if we also have the similar delivery we can minimise the gap.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If you look at it through competition and curriculum, our local universities are in forefront. If you compare the foreign university curriculum with Nepali counterparts, we have a much better curriculum. Nepali universities are already customised with local environment while Indian university cannot be customised. You have to run according to their curriculum. Our curriculum is customised according to our culture, system, economy, situation, need and expectation. That way our curriculum is excellent and those courses have not proven any threat to us. But that does not mean it is time to stay idle. The way foreign universities are coming, they have changed the teaching-learning method. Concept of dual faculty has been introduced in Indian university affiliated colleges. It is a challenging system. That will challenge us in the future. British, American and Indian universities are willing and are coming to Nepal. However, they are mostly offering distance education, so far. Till date, we have a strong curriculum and we are not facing any threat from universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most of the leadership positions in the private sector banks and corporate houses are being held by MBA graduates from foreign universities. How do you react to this?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Companies must have found some difference in these foreign graduates. They must have certain unique personality and knowledge. But that knowledge, skill, efficiency will be transferred gradually to ours too. This will not be the same forever. In the days to come, Nepali MBA graduates can also do that. It is only a matter of time. It may take a few years or a few decades. India has a long history in management studies and MBA while we have just begun teaching MBA. Such things are not negative. We can learn from them and analyse what we lack and what special they have got. Students must self actualise and they can develop themselves accordingly.</span></div>',
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			'description' => 'The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU).....',
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			'id' => '470',
			'article_category_id' => '40',
			'title' => ''Corporate EntitiesKnow The Importanceof Having MBAs' (September 2011)',
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			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="0" height="192" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dr bijay kc.jpg" style="width: 159px; height: 192px;" vspace="10" width="159" /></span></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Dr Bijay KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty Prof and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think itâ€™s going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for management graduates in the job market. However, I must admit that we must adapt ourselves to the fast changing scenario of business education. The schools should also become receptive to the needs of the business enterprises because ultimately itâ€™s they who are going to provide employment to the students graduating from these schools. I also feel that the government should take an initiative to come up with a new university that will specialise in management studies. At the same time, such a university should permit only such schools and colleges that have proven themselves in the field of management education. Another important aspect is that the faculty of business schools must have a say in matters related to examinations and quality control because they best understand the needs of the students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Is the Nepali business schoolsâ€™ curriculum well prepared to meet the demands created by globalisation? What is SAIMâ€™s curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We, at SAIM, offer a programme called MBA Global Business in affiliation with Pokhara University which, fundamentally, exposes our students to global management practices. We do have some courses on entrepreneurship which are targeted at developing job creators of the future but a majority of the students prefer to join different sectors as professionals. As for a job creator, an entrepreneur must also have some knowledge on marketing, finance and resource etc. But I do realise that to make our programme more entrepreneurship-oriented, we need to have more courses included in the curriculum by our parent university.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Could you tell us about the teaching methodology at SAIM? Are the students forced to study foreign cases primarily because there is a dearth of home-grown cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Yes, we mostly use foreign case studies and I see no harm in using those. These cases are actually very good and a management educationâ€™s basic purpose is to develop the skills of the students. We do have a few good home-grown cases which we use. You must understand here that good case studies are hard to come by and writing them is not an easy job.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sponsoring their fresh employees to study in foreign colleges. Do you think there is a lack of trust, on their part, in the quality of our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think more than anything else it is to make their employees gain further knowledge and equip them better. If they didnâ€™t have faith in the quality of education we offer, they wouldnâ€™t hire them in the first place. My feeling is that management education is a lifelong asset for the students. Getting an MBA degree does not mean that the students know everything about management. My recommendation to the corporate houses is that after three-four years of work experience, they should look at sending these students for further studies abroad.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">A lot of students are going abroad to pursue management degrees? Why are the local colleges not able to retain them here?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The fact of the matter is that, now-a-days, a lot of Nepali students want to pursue management degrees. Itâ€™s a classic case of demand overwhelming supply as the number of seats available in Nepalâ€™s business schools is not adequate to accommodate all these management degree aspirants. We understand that there is a need for more business schools and more seats. At the same time, we cannot afford to compromise on quality. Among the many business schools operating in Nepal, there are only about four or five of them providing quality education. This limited number of colleges can accommodate around 200 students at best. Itâ€™s but obvious that a lot of students not finding a seat in these colleges will look to go abroad. Besides, some good students may get admission to world renowned business schools like IIM or Harvard, for example. In such cases, we cannot be unfair and ask them to stay back in the country for our own selfish reasons.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is your curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The basic concept of management education is the same around the world. For example, a course on inventory management is same whether in the US or here in Nepal. A lot of cases provide a wider perspective of problems therefore; we look at applying them in the context of Nepal. In some cases, we have to resort to modification to suit the business needs locally.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Why do you think there is tremendous attraction to business studies these days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is because of the job opportunities available to management graduates in recent times. In the last decade-and-a-half or so, corporate entities have realised the importance of having them in their ranks. It has become relatively easier for MBA graduates to start professional careers based on their education. Besides, these graduates have performed and proved themselves at their respective workplaces which have compelled companies to hire suitably qualified management graduates. So, job opportunities coupled with career enhancement prospects have been instrumental in attracting scores of students towards business studies of late.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think MBA graduates from Nepali business schools are paid lower than they deserve?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As far as remuneration is concerned, it basically differs from company to company. From the companiesâ€™ perspective, if they want to have bright students working for them, they must be prepared to pay handsomely to attract them. What also matters is an individualâ€™s ability, he/she must be prepared to perform and prove his/her worthiness to command better remuneration. Having an MBA does not automatically guarantee an excellent pay. I am sure even if some students may begin their careers by agreeing to work for a package that is less than their expectation levels, they can always prove themselves first and then demand a better pay package.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus recruitment at SAIM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">At the end of the two-year programme, we prepare profiles highlighting academic background and credentials of all students that are passing out and distribute the profiles among the interested companies. A lot of these companies evince interest in particular individuals so we act as a link between the two. Itâ€™s both established companies as well as upcoming ventures that hire our graduates.</span></div>',
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			'description' => 'I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for.......',
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	(int) 4 => array(
		'Article' => array(
			'id' => '469',
			'article_category_id' => '40',
			'title' => ''We Want Our MBA Graduates To Become Job-Givers' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="1" height="183" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/pro subash kc.jpg" style="width: 142px; height: 183px;" vspace="5" width="142" /><b>Prof Subas KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post Graduate Diploma in Training and Development from University of Manchester, UK, his areas of specialisations include Human Resource Management/Development, Organisational Behaviour and Organisation Development. He previously worked as the Director of Centre for Management Innovation (CEMI) at Nepal Administrative Staff College and as a Training and Research Officer for the development of cooperatives in the government. In an interview with <i>New Business Age</i>, Professor KC expresses his ideas on the importance of management education in Nepal and recommends better quality to get closer to international standards. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think management education is going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think the growth has been pretty good. A number of business schools have opened in recent years as a result of the increasing demand for business education. From the perspective of both demand and supply of business education, it is a very encouraging and healthy development we have here. However, I canâ€™t say the same from a quality perspective. All the business schools in Nepal need to substantially improve their quality levels. We need to be able to supply competitive products in the market particularly because they have to compete with business graduates arriving from western universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I believe that our society is going through a process whereby it is trying to managerialise itself. What we lacked in the past was a managerial approach to address our issues and problems. However, if you look at the history of economic, social and industrial development of the western societies, you will find that they went through a managerial revolution at some stage or the other. Therefore, we need managerialisation of values, ideas, attitudes and perspectives among others. A manager looks at things differently than a person who is not trained as a manager. Our society and economy are in the process of modernisation so we need to managerialise them accordingly. This is another reason why the demand and value for management graduates have tremendously increased. I only hope that itâ€™s not a passing fad and the demand for MBA graduates will continue to grow. As for managerialisation, the process has already begun and the evidence is for all of us to see but I am not happy with the pace of it. If the existing process accelerates and catches momentum, we will need more professionals and graduates with adequate training in business administration. Therefore, I am confident that the value of MBA education will continue to grow at least in the foreseeable future.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is the competency of business graduates produced in Nepal compared to those from regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As I just mentioned, we need to maintain our competitiveness if we want to be part of the globalised economy. When we compare home-grown graduates with the ones who have graduated from western universities or the best universities in India, we are slightly behind in terms of quality. Itâ€™s not necessary that everyone who has a business degree from abroad is better than the graduates produced in Nepal. However, it would be unfair to compare our graduates with the ones from IIM, Harvard or Wharton. On the whole, MBA graduates from good business schools in Nepal are at least at par with business graduates from average or above average universities in India and elsewhere. But the business graduates from mediocre business schools in Nepal are far behind in terms of quality. Though it will take plenty of time, effort, resources and dedication, we at KUSOM want to improve the quality of our graduates to enhance their competitiveness. We are certainly on our way to make our graduates as competitive as possible.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you analyse the motives of students behind pursuing management education now-a-days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s definitely very good from the perspective of business schools. However, itâ€™s not too difficult to explain this explosion of interest in business education. There are a couple of reasons for the strong desire on part of the students to pursue business education, particularly MBA. You must understand that MBA is a global brand. With increasing exposure to the rest of the world, parents as well as students have become aware of this brand and its value. The brand value of MBA was always there worldwide but it arrived slightly late in our part of the world and it has now caught on. An MBA programme is a package which prepares its graduates for taking on diverse and competent roles and it gives them an edge over other education. This ultimately helps them put their best foot forward in the job market as well as while taking over family businesses or turning entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How has KUSOM tried to change this traditional practice?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Without talking about the pedagogy of education, we cannot talk about MBA. In fact, worldwide, it is an educational process where you would find different methodological approaches compared to other disciplines. We are trying to follow different approaches to train and educate our MBA students. We follow case-based methods and a lot of times, problem-based method of teaching. We give students problem-like situations, either real-life or imaginary problems, and we ask them to first analyse the problem using theoretical concepts or models and then come up with recommended course of action. We also apply project-based method of learning where students are given real-life problems. They have to reach out to several industries and organisations, interact with the managers, come up with real data, prepare a report and finally make a presentation based on all these. Even in a classroom environment, we create what we call interactive and group-based learning approach. Students are divided into small groups and made to discuss issues and problems among themselves so they learn through and with each other. This cross-breeding of ideas generates new ways of looking at things. We have been the pioneer and leader in using more innovative approaches through these three methods of learning namely problem-based, project-based and interaction-based methods.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s a tricky proposition and to be honest with you, I am not happy about the whole idea. The foreign universities that some business schools in Nepal claim to have an affiliation with are not prestigious universities by any means. I would rather like to see business schools establishing some kind of affiliation with Harvard, Kellogg, Wharton, IIM or London Business School. I will be the first one to welcome affiliations with these trusted names because it would help us raise the quality of education here. We at KUSOM, too, will be under pressure to raise our level of competency. If we are not able to bring in prestigious universities, then probably it makes more sense to pool our resources together and invest it in our own MBA education. Besides, MBA education is locally sensitive to some extent where several courses need to be customised to meet the requirements of local businesses and organisations. For example, itâ€™s no point teaching students the US copyright law. Simply having the tag of a foreign university does not ensure quality education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think the new MBA colleges have been able to address issues that the older MBA colleges lack?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Not really. In any sector be it education or otherwise, our culture and psychology is such that rather than innovating, we simply follow the leader or a successful example. KUSOM had the advantages of being the first mover but it did commit its share of mistakes. However, the colleges that followed us failed to learn lessons from our mistakes. In Nepal, we donâ€™t have this culture or psychology of critiquing that brings forth positive evaluation of others. I would be happy if the business schools in Nepal learn from each other as far as successes are concerned. And of course, it would be great if they could also learn from each otherâ€™s mistakes and donâ€™t repeat them. It would go a long way towards enhancing the quality of management education in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBAs target a job in a bank. Is that only what the MBA course is designed for? Do you see any misconception among students in this regard?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">To be honest, we donâ€™t advise or encourage students to build their careers in the banking sector <i>per se</i> but the reality is that almost two-third of our students end up working for different banks. MBA course is not designed to develop people for the banking sector only. However, the fact is that banking is among the fastest growing sectors and 90 per cent of the students, while interviewed for intake, say that they want to join a bank after graduating. Another reason is that the banking sector has some very iconic figures and a lot of students seem to have their role models and corporate leaders associated with this industry. Compensation package in banks are more attractive compared to other sectors which is another factor. Besides, a lot of our students come from well-to-do families so they want to work in banks for reasons of convenience. I am sorry to say this but it is a wrong career model for MBA graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">On our part, we are consciously orienting our students to think in terms of careers outside the banking sector. Our emphasis is on entrepreneurship and we want our MBA graduates to become job-givers rather than become job-seekers. A majority of our students joining banks is actually alarming for us. We donâ€™t want to attach our MBA programme with banking career only because that will be suicidal for us. We are working to make sure that our students diversify their career choices.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus&nbsp; recruitment at KUSOM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We have an excellent track record on recruitment as our graduates are readily absorbed in the job market. And, some of them land a job even before they complete their programme. All our graduates so far have found employment within months of graduating and have gone far in life except for those who donâ€™t want to work for others. There are some graduates who either turn entrepreneurs or join their family businesses. We have a unit here called â€˜PlaCeâ€™ (Placement Cell) supervised by an Assistant Professor and supported by a couple of alumni in the team. In this context, we are organising a job fair on September 2 for which we have sent out invitations to about two dozen companies. This job fair will create a platform for employers and the potential employees. Also, in the last term of the programme, we train our students in job search. We have recently reorganised our placement cell. Now, people associated with it have come up with an excellent plan. They maintain a database of our graduates and some of the industries which have openings for fresh MBAs. One aspect that is missing but I would like to add to our placement efforts is appointment of a professional counsellor. We do job counselling to the extent we can but it is a specialised area so we hope to have a trained job counsellor or psychologist who can do a psychometric analysis of the studentsâ€™ career potential and advice them accordingly.</span></div>',
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			'id' => '428',
			'article_category_id' => '40',
			'title' => 'Economic Policy Deflections (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<strong><span style="font-size: 14px;"><i><img align="left" alt="economic" border="1" height="316" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/cover(1).jpg" style="width: 315px; height: 316px;margin:10px;padding:10px;" vspace="10" width="315" />By Achyut Wagle</i></span></strong></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">A</span><span style="letter-spacing: -0.05pt;">t present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is veering more towards the replay of 19th century model of state-controlled, putatively self-sufficient â€˜nationalistâ€™ and thus effectively an isolationist paradigm. The policy shift seems to have completed a full-circle from the campaign of self-sufficiency, trumpeting of fulfilling basic needs, then open-market-oriented liberal policies to the present one marred with confusion but decidedly intended to execute state-controlled economy. </span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Apparently, as elsewhere, the vicissitudes in the Nepali economic policy has been analogues to the nature of the political dispensation the country adopted in different points in history. The externalities too have their share of influence in shaping these policies. Such an influence is surely growing with the changing world order, shifting of epicentres of economic activities and, of course, with dramatically increased communication and transportation connectivities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Vicissitudes</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal presented its first national budget in 1952. Until the fall of Rana oligarchy in 1951, Nepal remained primarily a vassal state. Any economic policy under a 104-year long Rana rule used to be based on the whims of the ruler and that too, related only to the land tax and management of major temple trusts or â€˜Guthisâ€™. Back then, almost cent per cent people relied on agriculture of subsistence nature. State hardly spent for developing infrastructure, public delivery and services systems. The fall of Rana rule and dawn of democracy in 1951 February definitely heralded a new era both politically as well as economically. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first budget had three prime policy focuses â€“ expansion of education, promotion of co-operative like structures at the village level to increase agricultural productivity and monetising the economy to the extent possible. This also welcomed the American aid in the country thus far remained largely closed, except for British and Indian diplomats, for the outside world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Those initial policies were fairly realistic to Nepal given the socio-economic realities of that time. But, the political squabbles and power struggles overshadowed the implementation of them for at least a decade to come.&nbsp;However, despite politically a fluid situation, mid 1950s marked as a major milestone â€“ mainly in two respects â€“ in 1955 Nepal Rastra Bank (NRB) was established and in 1956 Nepal adopted its first five-year plan. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">One of the major objectives of the NRB was to replace the Indian currency, which was widely circulated in Nepal, by the Nepali currency. Second one was to speed up the process of monetising the economy in place of widely practised barter system in goods and labour.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first plan focused on transport and communication infrastructures. A substantial allocation was made in developing the administrative structure all across the country. But before the completion of the first five year plan due 1961, political coup dâ€™Ã©tat by the then King changed the whole economic paradigm, development priorities and naturally their outcomes.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Flip-Flops of Panchayat</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The second plan was only for three years by lapsing a year. It was prepared by the National Planning Commission, a Russian style central planning mechanism, which still exists with very little variation.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">From the third five-year plan on, the partyless panchayat system under the direct rule of the King imposed a guided development policy. The economic policies were rather random mix of socialistic and capitalistic overtures. The state heavily invested in setting up state-enterprises of all sorts â€“ manufacturing, services and deliveries. This was an era of â€˜generousâ€™ foreign aid and Nepal was opened to all hues of them, albeit, with caution not to politically destabilise the largely totalitarian panchayat polity. Local panchayats were the political-administrative channels employed to carry out economic and development activities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The seventh five-year plan (1985-90), the last of panchayat era, made two major policy departures. First, the plan categorically pronounced to work towards meeting the basic needs of the people, under the slogan coined as â€˜elevating the peopleâ€™s living to Asian standardsâ€™. And, second, it adopted a ground-breaking policy flexibility of inviting foreign direct investment and improving the performance of the state enterprises as recommended by Structural Adjustment Programme (SAP) piloted by the International Monetary Fund (IMF). During this period, apart from several foreign investments in tourism related industries, two foreign joint-venture banks, Nepal Arab Bank (Nabil) and Nepal Indosuez Bank were established. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Openness</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The reinstatement of multi-party democracy in 1990 began an era of economic liberalisation in Nepal too. The political change delayed the eighth plan by two years. But the eighth plan (1992-97) firmly advocated the privatisation of and divestment from the State Owned Enterprises (SOEs) and open market policies across all sectors. Undoubtedly, the forces of globalisation and international trend of reclaimed openness through democratic governance in former USSR and Eastern Europe contributed to these developments. Whatsoever, this is perhaps the â€˜golden eraâ€™ in terms of economic policy formulation and growth in Nepal. During this period, private sector investment was impressive. Airlines, hospitals, educational institutions, banks and manufacturing units were set-up by private investment. Public investment in infrastructures, mainly roads provided firm basis for urban access to villages. The ninth plan was generally continuation of the eighth plan. But the growth spirit was dampened by the armed insurgency initiated by the CPN-Maoist in 1996 February. Amidst fear and uncertainty, the economy dragged on. But the growth path was already truncated before the end of this plan in 2002 due to spread of violence in the country-wide scale, destruction of infrastructure and absence of any substantive private investment. Despite all odds, the GDP growth in the 1990s was about five per cent annual average.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Poverty Focus</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The tenth five-year plan was adopted through wider consultations with donor community led by the World Bank and other stakeholders. The whole plan was baptised as Poverty Reduction Strategy Paper (PRSP). True to its name, its focus was on poverty reduction with added dimensions like putting women in the forefront of rural poverty reduction strategies. An interesting policy link was introduced between the structural and legal reforms and the poverty reduction. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">At the very beginning of the plan, Nepal Development Forum was organised for the first time in Nepal. As the Maoist insurgency had become widespread, it also tried to look into the links of the factors like poverty, unemployment and social unrest or insurgency. Interestingly, however, the main policy basis adopted in 1992 that emphasised on the free market economy continued till the tenth plan that ended in 2007. One of the highlights of the tenth plan was Financial Sector Reform Programme (FSRP) that aimed to achieve the central bank autonomy and efficiency, reform in public sector banks, Rastriya Banaijya Bank, Nepal Bank Ltd and Agricultural Development Bank. Several other institutional set-ups like Credit Information Bureau, Debt Recovery Tribunal etc were added. Substantive legislative reforms were made, including a composite Bank and Financial Institutions Act 2007 (BAFIA). Reform in the capital market was another important agenda which has only partially achieved.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Some of highly ambitious reform agenda like bringing the financial giants like Employeeâ€™s Provident Fund and Citizen Investment Trust under an effective regulatory and supervisory ambit and establishing an Asset Management Company remained untouched. Despite generally appropriate policy directions in the later years of the tenth plan, the focus on implementation got immensely diluted. Among many other things, the process of privatising SOEs did not go ahead as expected.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">On the Reverse Gear </span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After signing of Comprehensive Peace Agreement with the Maoists in 2007, the discourse on economic policy has taken a backseat. The Agreement and the election for the Constituent Assembly both established the apparent dominance of the communist forces in Nepali politics. This not only changed but reversed the very orientation of national economic policy. Since then, no five year plan has been formulated. Two interim plans of three-year each were adopted in view of the prolonged political transition.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Contrary to the general expectation that the post-CPA period would create more conducive atmosphere for economy to grow, the economic performance has gone from bad to worse. The policy confusion is at its core. The communist forces, particularly the UCPN- Maoist is oscillating between proletarian dogma of state-controlled, distributive economy and present day global realities that demand openness and interdependence. The partyâ€™s heavy political reliance on its trade unions have made them unruly and major source of industrial disturbances.&nbsp;This has telling adverse effect of spatial nature on manufacturing and exports, new investments and employment generation. In a nutshell, Nepali economy is again going back to the era of â€œeverything done by the state.â€ Recently it has created new state-owned corporations like Hydropower Development Bank. No government policies assertively talk about privatisation and reform. In a bid to balance the international realities and communist indoctrination, the racing horse of growth has turned into a camel.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">For the last couple of years, the Maoist-UML coalition is in power. It has vehemently pushed a three-pillar â€“ government, cooperatives and private sector â€“ concept of economy which has irked and made apprehensive to the private sector regarding its role and treatment from the state. The private sector is unwilling to consider the cooperatives a separate sectors but the subsector of the private. Given nature, scale and GDP contribution, this proposition seems justifiable. But the more left-oriented policy makers have seen cooperatives as the substitute to the â€˜commune styleâ€™ operation of the economy, thus the emphasis. The cooperativesâ€™ contribution to the national GDP is estimated to be meagre 2 to 3 per cent.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Of late, the donor community and the potential investors â€“ both foreign and domestic â€“ seem to have lost interest in Nepali economy owing largely to absolute lack of policy predictability, growing apprehension of infringement on private property rights and disturbed industrial peace at the hands of ruling-party hoodlums and even stateâ€™s failure to bring them to&nbsp;justice.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Future</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal apparently does not stand at a point of immediate course correction so as it could regain the lost trust and re-ignite the growth engine. There are two main reasons for this: first, the communists, particularly the Maoists are still essentially against the concept of giving the private sector a lead role in economy.&nbsp;Not only that, their anti-private sector rhetorics is often repeated in this or that form. Recently, they have announced that â€˜allâ€™ party leaders would pull-out their children from private schools; purely a futile and demonstrative move. Therefore, until, the party recognises the private sector as major player in the economy and reflects the same in both â€“ policies and actions, economy is unlikely to come out of present sluggish pace of growth â€“ 3.5 per cent in the last fiscal year.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The second is the complete absence of the economic policy debate in all major political parties. Any economic policy introduced so far by any party or the government is not an outcome of all through meaningful debate from the local to the central bodies in a manner a democratic outfit should ensure for ownership and the implementation of these policies. Only adoption of this practice can bring the economic agenda to the forefront of the national debate and the policy predictability could also be ensured. </span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'At present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is.....',
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	(int) 6 => array(
		'Article' => array(
			'id' => '427',
			'article_category_id' => '40',
			'title' => 'Sorry State Of SOEs (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;"><strong>By Pinaki Roy</strong><br />
	Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government will provide over Rs 1.77 billion to the state-owned enterprises (SOEs) as subsidies in the current financial year while another Rs 1 billion will come in as foreign grant and loan. The subsidies to the SOEs for FYs 2009-10 and 2010-11 stood at Rs 1.54 billion and Rs 1.97 billion, respectively. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Most SOEs in Nepal are in loss for a long time now. Even the ones that are making profits are because of their monopolistic nature of business. However, itâ€™s inevitable that they too stand to come under pressure once competition intensifies. For example, Nepal Telecommunications Corporation (NTC) is being increasingly challenged by Ncell, a leading mobile telephony brand in Nepal. Most SOEs that are registering mounting losses year after year owe it mainly to political interference and corruption within these public corporations. The high profile Nepal Electricity Authority (NEA), Nepal Oil Corporation (NOC) and Nepal Airlines Corporation (NAC) are among the notable SOEs that have been making losses for as long as one can remember. Suresh Kumar Regmi, Under Secretary at Corporation Coordination and Privatisation Division of the Ministry of Finance (MoF) says, â€œThe corporations must try to become profit making entities on their own instead of expecting help from the government all the time.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Keeping these SOEs alive and kicking essentially means that the state has to dig deeper into its coffers to provide for them. The same money could have been invested otherwise on development. Among the most glaring failures are those of NEA and NOC that have miserably failed to adjust prices in accordance with evolving market dynamics. NEA sells electricity to its consumers at Rs 6.57 per unit as against its cost of Rs 8.97 per unit resulting in a loss of Rs 2.40 per unit. Its accumulated loss of around Rs 19.47 billion exceeds several folds to its total asset value. Similarly, NOC is under Rs 15 billion deficit currently due to heavy losses on petrol, diesel, kerosene and liquefied petroleum gas (LPG) prices. To make matters worse, it is plagued with corruption, political interference and poor governance. The government has no choice but to bailout these SOEs year after year because electricity and fuel are basic services that people of this country cannot be expected to live without. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The question arises as to how long can the state rescue the loss-making SOEs by compromising on development expenditure. NAC â€“ once the pride of the nation â€“ has gone from bad to worse with losses amounting over Rs 2 billion. Boasting a sizeable fleet of 21 aircraft at one point of time, it is left with only three small aircraft that fly domestic routes and two medium sized jets. Among the biggest foreign currency earners not too long ago, NAC today merely watches in despair other domestic and international airlines snatching away its market share. Never-ending controversies on aircraft purchasing, political meddling with appointment of staff and loans have hit the corporation hard in the recent past. The employees appointed by the public enterprises (PEs) stood at 33,603 in FY 2008-09, while this figure dropped slightly to 33,526 in the succeeding fiscal year. The average monthly expenditure of these employees reached Rs 34,126 in FY 2009-10.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The taxpaying populace is infuriated because its money is funnelled into these failed enterprises while development activities and service delivery are taking a beating due to, among others, inadequate funding. Furthermore, there has been a lack of genuine intent to reform or privatise the loss making enterprises. The SOEsâ€™ survival now stands purely for political reasons. Their existence does not add significant value to the countryâ€™s productive capacity. During FY 2009/10, 22 PEs earned net profit, whereas 14 PEs recorded loss; some of them had negative net worth. The governmentâ€™s investment in these SOEs has reached a whopping Rs 84.91 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The total operating income of these enterprises in FY 2009-10 registered an increase of 21.63 per cent over the previous FY and reached Rs 130.98 billion. While the operating income of service sector enterprises increased by 70.2 per cent, the industrial sector enterprises registered the least increase in operating income at 4.2 per cent. The net fixed assets of 36 enterprises that totalled Rs 133.740 billion in the fiscal year 2008-09, reached Rs 139.365 billion by the end of the fiscal year 2009-10, an increase of 4.2 percent. While analysing the entire profit and loss of the 36 PEs, the net profit of Rs. 10.55 billion they had earned in fiscal year 2009-10 grew by Rs 8.3 million in the fiscal year 2010-11. However, if three major profit making SOEs are taken out, these statistics cut a sorry figure in itself. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Akin to the case in other countries, the state enterprises in Nepal too are present in areas that could be more successfully occupied by the private sector. Incompetent SOEs have blocked private dynamism completely and, at the same time, necessitated an insurmountable financial and administrative burden. In contrast, privatisation promises to free up public assets for activities of urgent attention and facilitate improved and inexpensive services besides unlocking prospects for private sector growth. However, the Privatisation Cell of the MoF has no immediate plans to privatise SOEs anytime soon. â€œWe are not in a position to close loss making enterprises either as they provide employment to thousands of people,â€ Regmi informs on a rather helpless note. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Nepalâ€™s privatisation programme articulated in the 9th plan envisions promoting private sector participation in the economy. A number of enterprises, mostly agricultural and industrial, have been privatised since the programme began in 1992 with the government playing the role of a catalyst. However, a number of productive SOEs such as Bansbari Leather and Shoes Factory (BSLF) and Agricultural Tools Factory (ATF) have ceased to function after being privatised owing to governmentâ€™s thoughtlessness in selection modality and consultation process, and lack of proper homework while selling them. Over the last decade or so, the privatisation drive has slowed down considerably to the extent of coming to a virtual standstill.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The delicate financial health of the SOEs and their failure to adequately gratify market demands is a persistent problem that cannot be resolved by gifting subsidies and granting loans. Mismanagement, overstaffing, poor governance and accountability, competition from private players and most importantly, politics prevailing over economic imperatives have destroyed these SOEs and led them to their present dismal state. One can safely assume that unless there are radical and wholesome practices pursued such as privatisation (save the ones that are strategically linked to critical security and national interests) of these ailing enterprises, the SOEs will continue to be resigned to their fate and the taxpayers of this country will keep on bearing their burden. Worse, bailing out the SOEs of their financial chaos time and again only makes them more inefficient. Itâ€™s but tragic that the sick enterprises are encouraged to take the state and the nation at large for granted. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The Loss-making SOEs</span></div>
<table border="0" cellpadding="0" cellspacing="0" style="margin-left: 4pt; border-collapse: collapse; width: 321px; height: 678px;">
	<tbody>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border: 1pt solid white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Name of the SOE</span></b></span></div>
			</td>
			<td style="width: 59.9pt; border-width: 1pt 1pt 1pt medium; border-style: solid solid solid none; border-color: white white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Total Loss </span></b></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Dairy Development Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 325.1 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Herbs Production and Processing Company Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 136.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Hetauda Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 619.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Janakpur Cigarette Factory Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 800.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Drugs Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 485.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Udaypur Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.773 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oriental Magnesite </span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 3.597 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Food Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.107 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oil Corporation Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 8.418 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Airlines Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.557 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Gorkhapatra Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 89.7 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Television</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 760.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Water Supply Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 391.4 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Electricity Authority</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 18.230 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Agricultural Development Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 4.391 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rastriya Banijya Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 11.228 billion</span></span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>Source</i>: Ministry of Finance Report, Ashad 2068</span></div>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government.....',
			'sortorder' => '341',
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	),
	(int) 7 => array(
		'Article' => array(
			'id' => '426',
			'article_category_id' => '40',
			'title' => 'Policy Twists For Public Enterprises (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: 0.05pt;">T</span><span style="letter-spacing: 0.05pt;">he budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and ensure efficiency of public enterprises. However, this yearâ€™s budget has also mentioned a policy to disinvest the government shares among general public.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The latest budget is a step backward on privatisation policy adopted by previous governments. The budget presented by Dr Ram Sharan Mahat for the fiscal year 2007/08 had proposed a gradual privatisation of the state-owned enterprises. Then, the budget of 2008/09 presented by Dr Baburam Bhattarai of the UCPN-Maoist led government reversed the policy of privatisation. Next yearâ€™s budget by Surendra Pandey gave continuity to Bhattaraiâ€™s agenda to increase investments in government corporations. Economic experts had argued against increasing the investment in state-owned enterprises instead of taking up privatisation measures.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Though there were attempts of privatisation during the Panchayat system, they were unsuccessful.. The concept of socialism faded and liberalisation came into picture after the fall of communism in Eastern Europe. Nepal could not avoid the influences of the global change. There was massive change in Nepali economic policy with the restoration of democracy as the process of privatisation of public enterprises began after 1991. Experts have it that the new initiative was taken mainly because of the pressure from IMF, The World Bank and other donors. The change was incorporated in the White Paper published by the Girija Prasad Koirala government in 1991. The policy tried to balance the public and private sectors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The Koirala government emphasised on selling the shares of public enterprises at the stock market. That was aimed at widening the ownership of the newly-privatised corporations and also to ensure competition for companies as well as consumers. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Harisiddhi Brick and Tile Factory, Bhrikuti Paper and Pulp Factory and Bansbari Leather and Shoe Factory were privatised in the first phase. In 1993 and 1994, 14 companies were selected for privatisation. Seven of them were wholly government-owned while the rest had joint-ownership with the private sector. Similarly, in the second phase, Balaju Textile Factory, Nepal Film Development Corporation, Nepal Lube Oil, Bitumen and Barrel Industry and Raw Hide Collection and Development Corporation were privatised. Likewise, Jute Development and Trading Corporation and Tobacco Development Company were liquidated.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The policy took a different turn when the Communist Party of Nepal (UML) came to power in 1994. Unlike the Nepali Congress, the UML government favoured public enterprises. The budget speech of the same year read, â€œTo lessen the financial burden of the government, a privatisation program based on economic policies of the government will be implemented. There will be separate listing of corporations that are to be privatised and those that will not be privatised. The privatisation programme will be expedited for those corporations included in the privatisation lists.â€ However the government policy could not take off as the government did not even list the companies for privatisation. Further privatisation was certainly out of question. The budget of 2001/02 tried to be most intensive and aggressive towards public enterprises. The budget presented by Dr Ram Sharan Mahat promised to set up a separate unit in the Ministry of Industry, Commerce and Supplies to coordinate and monitor the price, quality and quantity of goods and services produced by the public sector. This budget also decided to prepare strategic and organisational planning to reform managerial, accounting and financial systems of the public enterprises. Most remarkably, it also decided to convert state-owned enterprises into companies curtailing the number of board members, their functions and duties to ensure professionalism.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">On minimising the cost to government, the budget presented by Dr Mahat read, â€œThe tendency of increasing short-term benefits by neglecting social security in public enterprises and development boards will be discouraged.â€ He proposed the provision to manage pension and gratuity compulsorily through Citizen Investment Trust. Likewise, the executive chief was made liable for creating any new financial liabilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another significant proposition by Dr Mahat was to encourage the private sector investment where the involvement of the government is deemed unnecessary and where there existed a high possibility of attracting private sector.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">After 2001, 17 companies have been either liquidated or privatised. Nepal Telecommunication Company was the latest one to join the list in 2008 when its some shares were sold to the public. However, the privatisation process stalled completely after 2009/10 except for the sale of government shares of Small Farmer Development Bank to Small Farmers Cooperatives&nbsp; in 2010/11.</span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and.....',
			'sortorder' => '340',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
			'homepage' => false,
			'breaking_news' => false,
			'main_news' => false,
			'in_scroller' => false,
			'user_id' => '0'
		)
	),
	(int) 8 => array(
		'Article' => array(
			'id' => '425',
			'article_category_id' => '40',
			'title' => 'What’s Wrong With Public Enterprises? (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><span>T</span><span>he government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by Bharat Mohan Adhikari. The promise made in the budget 2010/11 to form the committee has however remained unfulfilled.&nbsp;The board is expected to manage and run the corporations effectively and efficiently. Suresh Kumar Regmi, Under Secretary of Corporation Coordination and Privatisation Division at the Ministry of Finance, said the proposal to constitute the board has been sent to the cabinet for approval.</span><br />
	</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The role of the government to act as a referee for the development of economy seems to be neglected by the new budget. Rather, it has proposed the concept of an economy led by cooperatives. Obviously, private sector is thoroughly dissatisfied with the government move. Dr Ram Sharan Mahat, former Finance Minister and Nepali Congress Leader, said, â€œThe proposal of the government-owned cooperatives is not an alternative. Rather, they are against the self-help spirit of the cooperatives.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the new budget, the government has tried to democratise the selection of Chief Executive Officers and General Managers of public enterprises. Merit-based selection is expected to welcome capable and qualified leadership. Often, it is alleged that poor leadership in the corporations led to their deterioration.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Similarly, this yearâ€™s budget says, â€œA policy of disinvesting the share of the public enterprises to the public will be implemented.â€ The share of the government was Rs 82.76 billion in 2009/10 while its total loan investment in 36 public enterprises remained at Rs 84.92 billion. In the previous fiscal year, the figures stood at Rs 86.13 billion and Rs 74.60 billion respectively. According to the economic survey of 2010/11, share investment of the government decreased by 3.9 per cent while loan investment rose by 13.8 per cent.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the name of reforms, the government is funnelling billions of rupees from the state coffers as subsidy to public enterprises which are constantly failing to show their competency in comparison with the private sector. This year, an estimated Rs 2.77 billion is being provided as subsidy. Similarly, the subsidy was Rs 1.97 billion in 2010/11 and Rs 1.54 billion in 2009/10. Regmi said, â€œThe corporations will not progress if they remain dependent on the government. Rather, they must manage their operations on their own.â€ â€œWhen the private companies in the same sector can do well, why canâ€™t the government-owned companies make profit,â€ he asked.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the last fiscal year, out of the 36 public enterprises, 22 were in profit while 14 were bearing losses. None of the corporations engaged in production are in profit. The economic survey shows that the net profit of Rs 10.55 billion in fiscal year 2009/10 grew by Rs 8.3 million in the fiscal year 2010/11. The share of net operating income of the public enterprises has been 11.2 per cent of the GDP. Regmi said though the number of profit-making companies has increased in recent years, the combined profit of the corporations has not increased. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although Nepal Tourism Year 2011 is going on, national carrier Nepal Airlines Corporation (NAC) is in the worst possible condition. Similarly, Hetauda Cement and the first cigarette factory of the nation, Janakpur Cigarette Factory, are also in dire straits. Despite a monopoly in the market, it is unfortunate to see Nepal Oil Corporation (NOC) and Nepal Electricity Authority (NEA) in heavy losses. Stories of other 14 corporations are no different. Poor management, inefficiency, corruption, weak leadership, skewed policies are to be blamed for their failure.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Likewise, the net fixed asset of the 36 public enterprises was Rs 133.740 billion in the fiscal year 2008/09 which increased to Rs 139.365 billion by the end of the fiscal year 2009/10, up 4.2 per cent. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">With the liberalisation policy on economy introduced after the restoration of democracy in Nepal, the government initiated the process of privatisation, liquidation and termination of state-owned enterprises in 1993. Ever since, 30 companies have been divested of which 18 corporations have been privatised while 11 have been liquidated and one, Nepal Transport Corporation, was dissolved. The disinvestment has been carried out through the sale of businesses assets, partial disinvestment of shares, sale of current assets, leasing of buildings and land, management contract, liquidation, and termination. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector and some economists are complaining that the government has taken a regressive step by reverting to state-controlled economy from the currently liberal economic regime. Mahat said the proposal of the government brought through the budget 2011/12 is suspicious and non-transparent. â€œThe government has failed to bring any concrete policy for the state-owned enterprises. It lacks an action plan for the corporations,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Experts opine that the government should play the role of a referee. It should work for the development of the real sector and the economy but it should not involve in doing business. They say competitive market entities should be handed over to the private sector. Dr Prakash Chandra Lohani, former Finance Minister and Co-president of Rastriya Janasakti Party, says the government and the private sector must complement each other. He opines without ensuring law and order and a strong policy framework, the private sector cannot prosper. â€œFor that, competitive regulation is necessary and the government should try to minimise the risk of the private sector. However, this yearâ€™s budget does not talk about vision and roadmap for the private sector,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although much criticised, the public enterprises have been the source of employment to 33,603 people at executive level appointed by the management in 2008/09. However, the figure dropped to 33,526 in the succeeding fiscal years. Regmi also accepts that public enterprises&nbsp;are overstaffed. Experts opine that the number of staff in sick corporations can be lowered, which may lower their cost of operation and.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">According to Regmi, the government does not have a list of public enterprises that they want to privatise or a policy framework to privatise them in the near future. He suggests that the policy should be made in coordination with line ministries to give such companies the right direction. â€œTrying to save them by the finance ministry alone will not work,â€ said Regmi. â€œA political decision can choose either to close down or keep operating the public enterprises. However, as thousands of people are getting employment even in sick public enterprises, they cannot be abruptly closed.â€ </span><br />
	</span></p>',
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			'description' => 'The government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by.....',
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	(int) 9 => array(
		'Article' => array(
			'id' => '424',
			'article_category_id' => '40',
			'title' => 'International Privatisation Trend (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">M</span><span style="letter-spacing: -0.05pt;">otivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation programmes in the last twenty-five years or so. Decades of poor performance and inefficient operations by SOEs led the governments to embrace privatisation. Thousands of SOEs have been given away to the private sector in Africa, Asia, Latin America, and Eastern and Western Europe. Throughout the world, annual revenues from privatisation soared during the late 1990s, peaking in 1998 at over US $100 billion.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Widespread privatisation in recent decades has generated a reasonable hype concerning the effects of ownership on performance. Most studies find that privatisation has a positive impact on profitability and efficiency of business firms. However, very little is known about the effects of partial privatisation where the government remains the controlling owner. Indiaâ€™s privatisation programme has followed a pattern of partial privatisation through share offerings but at a particularly slow rate. Between 1991 and 1999, the Indian government raised about $9 billion in privatisation revenues, compared to nearly $71 billion raised in Brazil and $21 billion in China over the same period, according to Global Development Finance Report 2001.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Since both ownership and control shift to the private sector at the same time, full privatisation makes it difficult to distinguish between the political and the managerial perspectives. In contrast, under partial privatisation, the shares of the firm are traded on the stock market while the firm remains under government control and subject to political interference. Letâ€™s have a look at the following examples of how some countries and regions responded to privatisation in the last two to three decades. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">India</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The state intervention in SOEs has been undergoing a close scrutiny in many developing countries including India since 1980. The argument was that excessive political interference and lack of managerial interest (autonomy) hampered the performance of SOEs. Economic policy and state-owned sector in the post-independent India can be divided into four phases: (i) 1950-1965, (ii) 1966-1984, (iii) 1984-91 and (iv) post-1991 policy regime. The second sub-period of the second phase i.e. 1973-84 recorded a slow process towards liberalisation, which culminated into an irreversible process of liberalisation of the economy through the third (1984-91) and during final phase (1991 onwards). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Concepts such as liberalisation, privatisation, disinvestment and market-friendly approach replaced the old concepts of socialism and mixed economy. The period of 1966-84 culminated in a total transformation in the economic policy where economy was made predominantly dependent on market forces rather than on the state. The attempt, it seemed, was to depoliticise economic decisions as far as possible. The industrial policy that was initiated in 1985 was the culmination of the process of drifting away, which started during the second phase of the economic policy in India. The 7th Plan (1985-90) proposed larger planned outlays for the private sector as compared to the state-owned sector for the first time in the planning history of India.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India witnessed a major policy reform programme consisting of considerable deregulation of industrial sector as well as liberalisation of foreign investment and technology imports since July 1991. The 8th, 9th and 10th Plan documents suggested many policy initiatives towards restructuring, modernisation, rationalisation of capacity, product-mix changes, privatisation, autonomy, performance accountability and disinvestments policy. The movement of denouncing socialism that started in many parts of the world influenced Indiaâ€™s policy makers as well. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India undertook sweeping economic reforms that included deregulation and privatisation in response to the foreign exchange crisis in 1991. Since the Industrial Policy Resolution of 1991, which outlined the economic reforms, nearly every governmentâ€™s annual budget has declared that the privatisation goal is to reduce government ownership to 26 per cent of equity. In the decade following the launch of the privatisation programme, the government sold minority shares through a variety of methods including auctions and public offerings in domestic markets, and through global depository receipts in international markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The share of state-owned sector in total investment continuously declined since the 1980s is illustrated in the following table. The relative shares of the state-owned and private sectors during 7th, 8th, 9th and 10th plans clearly signal the rising importance of the latter at the cost of the former.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The 9th Plan divided SOEs into three categories (i) profit-making PSEs (Public Sector Enterprises); (ii) PSEs making marginal profits and losses; and (iii) PSEs incurring substantial losses. Accordingly, all PSEs were placed in suitable categories. Disinvestment Commission, started in 1996, primarily to discipline PSEs and make them result oriented was developed into a full-fledged Ministry for Disinvestment, thereby institutionalising the process of reforms and restructuring of PSEs. Once it was established that privatisation of SOEs was no longer a choice but an imperative, the stage was set for privatisation of SOEs. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Privatisation Trend</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The emphasis of Indian privatisation from 1991 to 2000 was on disinvestment through offloading of governmentâ€™s shares to the state-owned or financial institutions. During this period, the government offloaded shares in as many as 39 SOEs. However, since March 2000, the emphasis has increasingly been on strategic sales of identified SOEs. The table below briefly summarises the amount realised and the number of SOEs disinvested or privatised till November 30, 2003.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Modern Foods Industries Limited (MFIL) was the first SOE to be strategically sold followed by Bharat Aluminium Company (BALCO). Fifty one per cent of BALCOâ€™s shares were sold to Sterlite Industries for Rs 5,515 million. Following this sale, the government was quick to proceed with strategic sales in important firms by divesting 51 per cent of the shares in Computer Maintenance Corporation (CMC) to Tata Sons and 74 per cent of the shares in HTL, PPL and Jessop (for Rs 550 million, Rs 1,520 million and Rs 180 million respectively) to Himachal Futuristic Corporations. Nineteen hotels of Indian Tourism Development Corporation (ITDC) and three hotels of Hotel Corporation of India Ltd (HCIL) collectively contributed Rs 6,866 million towards divestiture or disinvestment proceeds. For all these 19 hotels, 100 per cent of the equity was sold. In terms of individual sales, maximum proceeds (Rs 37 billion) were collected by selling 25 per cent of the equity in Videsh Sanchaar Nigam Limited (VSNL), followed by the contributions made by selling 27.5 per cent equity of Maruti Udyog Limited (MUL â€“ Rs 24 billion) and Indian Petrochemicals Corporation Limited (IPCL â€“ Rs 15 billion). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Post-liberalisation era</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The government was forced to revise its economic policies following the exceptionally severe balance of payments and fiscal crisis in 1991 which resulted in disinvestment of government equity in the PSEs. The government steadily paved the way for a level playing field and competition with the private sector and thus resulted in PSEs being envisioned as revenue earning ventures of the government. Thirty individual Central PSEs were divested to select financial institutions namely Life Insurance Corporation (LIC) of India, General Insurance Corporation and Unit Trust of India (UTI) in bundles. Post-1996, sale through the global depository receipt route was also permitted and PSEs capitalised this opportunity to access international financial markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There was a strategic shift in the government policies between FY 2000 and FY 2004 that facilitated â€˜Strategic Saleâ€™ or disinvestment of government stake in PSEs. The process involved transfer of big blocks of shares and management control to the strategic partners that were identified through competitive bidding. Post-FY 2005, disinvestment realisations were primarily through the sale of small equity stakes. The government realised an amount of Rs 534.23 billion as disinvestment proceeds between April 1992 and May 2008.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">In recent times, several government-owned companies have either started disinvestment process or are planning to begin so including the Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Corporation Limited (ONGC). According to Disinvestment Secretary Sumit Bose, Follow on Public Offer (FPO) in SAIL was expected to raise Rs 7-8,000 crores while divestment of five per cent stake in ONGC will fetch the government around Rs 13,000 crores based on present market valuations. The government has proposed a disinvestment target of Rs 95,000 crores from the sale of shares in public sector companies over the next three fiscals, including Rs 40,000 crores in the current fiscal. Last fiscal, the government had raised Rs 22,400 crores through disinvestment in PSU companies by coming out with three Initial Public Offerings (IPOs) and three FPOs. The value of Indian governmentâ€™s stakes in listed SOEs is estimated at about US$ 320 billion and if unlisted companies are included as well, the total value would be approximately US$ 460 billion. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Russia</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The world learnt from the Russian experience that introduction of the â€˜shock therapyâ€™ or rapid mass privatisation can also lead to massive corruption. It underlined the fact that good governance mechanism is vital. Historically, private ownership of production facilities, financial companies and land was absent in the Union of Soviet Socialist Republics (USSR) for over 70 years starting 1917. As per the constitution of the Russian Socialist Federative Soviet Republic of 1918, land was transferred to farming units for management; all production units to â€˜labour collectivesâ€™; and the ownership of forests, natural resources, etc to the state. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Russian government spontaneously introduced a mass privatisation process in 1991 and introduced what was termed as â€˜shock therapyâ€™ â€“ instant price decontrols and rapid opening up of markets. This large scale movement of ownership transfer brought with it massive corruption in the auction process. The mortgage auctions in 1995 were some of the worst cases. Finally in 1997, a new model of privatisation was instituted under which companies were sold rather than distributed. Further, in 1998, the government also introduced processes of asset valuation by international advisors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Current Scenario</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The SOEs continue to play an integral role in the Russian economy even though the role of private sector is ever expanding in Russia. The Russian government believes in the state role through ownership for industrial growth, economic diversification and energy security. The fraction of firms with 100 percent state and mixed (state and private domestic ownership) as per 2007 data is as follows: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; All firms and organisations: <br />
	11 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Employment: 39 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Capital investment: 32 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Fixed assets (state ownership greater than 50 percent): 23 percent. </span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Hong Kong</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong is a relative newcomer to the global club of countries opting for privatisation. It has actually missed some opportunities to learn about and avoid certain problems of privatisation experienced in other countries. There have also been socio-political issues that are unique to Hong Kong. Its experience needs to be seen in the context of the long established worldwide phenomenon of SOEs and the trend of privatisation from early 1980s.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Despite being a British colony, Hong Kong didnâ€™t join the global trend of privatisation during 1980s and 1990s. Some ideas about privatisation were addressed in the government report for Public Sector Reform in 1989 but not followed up for two main reasons. First, there was no strong practical need to privatise public enterprises. Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), had once acknowledged that the erstwhile colony had little external, political or budgetary pressure to reform its public sector. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong recorded public budget surpluses year after year in the post-war period, much envied by other governments. The second reason for â€˜no privatisationâ€™ was political. During the long political transition till 1997, China opposed any colonial government proposal to privatise government assets in fear of a British plot to sell out the interests of the future HKSAR administration. However, the arguments about privatisation in Hong Kong have been reversed after 1997.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Divestment Plans</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Before the return of sovereignty to China in 1997, the Hong Kong government did not divest public assets because of Chinaâ€™s opposition and an absence of budgetary pressure. During the political transition, the colonial government was regarded as fairly competent in dealing with public confidence crises. However, after 1997, these conditions changed quite dramatically. The new conditions in HKSAR prompted the government to formulate divestment plans, but at the same time they raised potential problems for the implementation of the plans. After the political transition, China no longer opposed privatisation proposals of the HKSAR government.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Three Divestment Exercises</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Hong Kong community is generally receptive to the ideas of small government and privatisation compared to many other developed communities. The general acceptance in Hong Kong is partly due to the fact that the government uses public offers as the main strategy of divestment. The popular belief is that citizens will make good profits once they are allocated shares from the governmentâ€™s IPOs. Although the public generally favours public listing, the divestment exercises in Hong Kong were not without controversy. Fundamental conflicts of public interest in privatisation have had to be resolved from time to time. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">MTRC</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Mass Transit Railway Corporation (MTRC) was the first target of divestment in Hong Kong. In late 1999, the government introduced new legislation to replace the MTRC ordinance and to grant a proposed new MTRC company the right to operate the subway system. In October 2000, 24 percent of the MTRC shareholding (US$1.28 billion in value) was divested by way of listing in Hong Kong, London and New York. The offer was 18 times over-subscribed and broke the local record for an initial offering. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Tunnels and Bridge</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After the Legislative Council approved the relevant grant of power, the government divested the future revenues from five toll tunnels and a toll bridge in August 2004 under a securitisation scheme involving the listing of government notes worth US$ 770 million. The offer to individual investors was two times over-subscribed, and the portion earmarked for institutional investors was heavily subscribed. The assets themselves continue to be government-owned through a new government company, Hong Kong Link 2004 Limited. The day-to-day operation of the tunnels and bridge as managed by franchised private firms remains unchanged.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Link-REIT</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">The Housing Authority (HA â€” a statutory corporation) announced in July 2003 that it planned to divest most of its retail and car-parking facilities in public housing estates. The plan was that the government would first set up a new asset-owning and management company, Link Limited, and then divest its ownership entitlement to the companyâ€™s future revenue streams in full by way of the listing of a real estate investment trust fund, Link-REIT. The trust fund, REIT, was chosen as a vehicle for divestment partly because it would restrict the scope of Link Limitedâ€™s business initiatives and partly because the government wanted to promote REIT as a new type of financial product. The HA planned to transfer the retail and car-parking assets to Link Limited after the scheduled listing had been completed. In due time, Link Limited took over the day-to-day management of the HAâ€™s retail and car-parking facilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Latin America</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Latin American countries have been very active in privatisation. Even against the backdrop of massive economic transformations in transition economies, the privatisation record of Latin America seems remarkable. To facilitate their shift to a market economy, most Latin American countries launched mass privatisation programmes that resulted in dramatic reductions of state ownership. Latin America accounted for 55 percent of total privatisation revenues in the developing world in the 1990s followed by transition economies in Eastern Europe and Central Asia at 21 percent. The decline in the economic activity of SOEs has been more substantial in Latin America than in Asia and Africa, bringing levels close to those of industrialised countries. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Dramatic differences in the extent of privatisation are also evident within regions. In Latin America, for example, countries with large state owned sectors, such as Ecuador, Nicaragua, and Uruguay, barely privatised at all in the 1990s, while others such as Argentina, Bolivia, Guyana, Panama, and Peru raised revenues from comprehensive privatisation programmes that amount to over 10 percent of GDP. The difference in the extent of privatisation across countries and the large amount of assets in the hands of the state heightened the importance of understanding the privatisation record and of developing lessons for future privatisation programmes. However, Latin America has virtually halted its privatisation process in recent years after being the most active region in the 1990s. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><b><i>References</i></b></span></div>
<div style="margin-top: 5.65pt; text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>1&nbsp;&nbsp; Madhu Bala (2006) â€˜Economic Policy and State Owned Enterprises: Evolution towards Privatisation in Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>2&nbsp;&nbsp; â€œKPMG Internationalâ€ (2010) â€˜Resurgent PSUs Vibrant Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>3&nbsp;&nbsp; Nandini Gupta (2005) â€˜Partial Privatization and Firm Performanceâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>4&nbsp;&nbsp; Rikkie L K Yeung (2005) â€˜Divestment in Hong Kong: Critical Issues and Lessonsâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>5&nbsp;&nbsp; Alberto Chong &amp; Florencio LÃ³pez de Silanes (2004) â€˜Privatization in Latin America: What Does the Evidence Say?â€™</i></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>',
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			'created' => '2011-09-17',
			'modified' => '2011-09-17',
			'keywords' => '',
			'description' => 'Motivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation.....',
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	(int) 10 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nationâ€™s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, â€œWe canâ€™t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.â€&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. â€œThe stateâ€™s attitude is the major hindrance towards attracting private sector investment in renewable energy,â€ alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who donâ€™t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, â€œI personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.â€</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepalâ€™s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump â€˜right wasteâ€™ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. â€œIf we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,â€ Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nationâ€™s industries avert collapse. On the other hand, NEA wonâ€™t be affected adversely because the industries will be there to make up for its â€˜apparent lossâ€™.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the countryâ€™s topography provide ideal conditions for the development of some of the worldâ€™s largest hydroelectric projects. â€œIf we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,â€ Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepalâ€™s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors donâ€™t have an alternative. â€œThe FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,â€ he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, â€œSaudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.â€ He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. â€œMy observation is that energy crisis will continue in the next five years,â€ says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. â€œWe must determine our total energy-mix scenario over the next five, 10 or 20 years now,â€ he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
			'sortorder' => '329',
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	(int) 11 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. â€œNepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, â€œI see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.â€ </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepalâ€™s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. â€œThe total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,â€ claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepalâ€™s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. â€œWe are certainly not late in identifying the sectorâ€™s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, â€œThis country will collapse if we donâ€™t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepalâ€™s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
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			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producersâ€™ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious â€˜Manager of The Year 2006â€™ award from Management Association Of Nepal (MAN) and â€˜Excellence Award 2010 in Energy (Hydropower)â€™&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sectorâ€™s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, itâ€™s about time we gave topmost priority to hydropower development in Nepalâ€™s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earthâ€™s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepalâ€™s cities and towns are situated at an elevation. Hence, they donâ€™t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, itâ€™s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we donâ€™t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we canâ€™t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which canâ€™t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We wonâ€™t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesnâ€™t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you donâ€™t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past â€“ the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening â€˜another bankâ€™? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
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			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
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			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because itâ€™s the rainy season. But once monsoon is over, it will be back to square one â€” we will experience 14-15 hours of power outage again. As for renewable energy, I donâ€™t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA wonâ€™t have to lose because the industries are there to make up for NEAâ€™s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
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	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
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	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but canâ€™t agree with each other or we donâ€™t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
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	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in todayâ€™s context, how can we export when we donâ€™t have enough for ourselves? Take Bhutanâ€™s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the countryâ€™s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
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	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
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	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
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	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the â€˜right wasteâ€™ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
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<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Whatâ€™s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEAâ€™s low rates , which are highly subsidised. Therefore, itâ€™s no surprise that the private sector does not want to invest in renewable energy. They wonâ€™t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
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	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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	<span style="font-size: 11.5pt;">Current Scenario</span></div>
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	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
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	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
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	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
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	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
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	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
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	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
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	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
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	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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	<span style="font-size: 11.5pt;">Building Parameters</span></div>
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	<span style="font-size: 9.5pt;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</span></div>
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	<span style="font-size: 9.5pt;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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	<span style="font-size: 11.5pt;">Housing for the Masses</span></div>
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	<span style="font-size: 9.5pt;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
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	<span style="font-size: 11.5pt;">Housing for Foreigners</span></div>
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	<span style="font-size: 9.5pt;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
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	<span style="font-size: 11.5pt;">Looking Forward</span></div>
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	<span style="font-size: 9.5pt;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </span></div>
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	<span style="font-size: 9.5pt;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
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<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
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	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
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			'title' => 'Business Of B-schools (September 2011)',
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			'content' => '<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">By Gaurav Aryal</span></strong></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" height="252" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/sep-cover.jpg" style="width: 251px; height: 252px;" vspace="10" width="251" /></span><span style="font-size: 14px;">During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly trained human resource in the field, the management education also thrived as the business in itself. The growing number of banks, financial institutions, corporate houses and increased awareness about the need for modern management expertise to run any commercial&nbsp;venture fueled the growth in management education. Private sector investment in setting up the state-of-the-art institutions and immensly improved quality of education indeed have had multiplier effect in adding attraction to both-investors and students. More than&nbsp;one and half dozen colleges affiliated to three universities - Pokhara University, Purbanchal University and Kathmandu University (KU) - are running either Master in Business Management (MBA) or Executive MBA (EMBA) or both. Though the Tribhuvan University (TU) has not introduced any of these courses, it is running Master in Business Studies (MBS) for decades now. TU plans to introduce an MBA programme in the near future. All these universities also run Bachelor in Business Management (BBA), a four year course while TU has Bachelors in Business Studies (three year course) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A few years back studying medicine was supposed to be the most prestigious academic pursuit for a whole lot of students and guardians. Today, the market demand, expansion of career prospects in management sector, growing importance of human resources in companies and distinct teaching-learning methodology are luring more students to management education, perhaps, more than in any other discipline. Nepali universities are also working hard to produce quality managers to compete in the market where top-notch managers are still mostly from foreign universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The History</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management education began in Nepal in the form of commerce education in 1954 with the establishment of commerce department in government-owned Tri-Chandra College. The college had introduced Intermediate of Commerce (ICom) and Bachelor of Commerce (BCom) programs with 27 and four students respectively. The programme was affiliated to an Indian university till the establishement of Tribhuvan University (TU) in 1959. The following year, in 1960, TU began offering post-graduate programme in commerce called Master in Commerce (MCom) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Bijay KC, the Dean and Professor at South Asian Institute of Management (SAIM), says introduction of National Educational System Plan in 1971 proved a milestone in the evolution of management education in the country. TU set up Institute of Business Administration, Commerce and Public Administration. This institute was renamed as Institute of Management in 1976. It is now called Faculty of Management (FOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal National College (later renamed Shankar Dev Campus), Public Commerce College (Kathmandu), Nepal Commerce College (Lalitpur), Thakur Ram College (Birgunj), Mahendra Morang College (Biratnagar) ruled the roost for a long period in the management education of Nepal. Numerous prominent business persons&nbsp;and management gurus were educated in these colleges. These colleges were later brought under the direct control of TU (as TUâ€™s constituent campuses) following the introduction of National Education System Plan of 1971.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That system of complete state control on education was withdrawn in 1979 and TU started granting affiliation to colleges set up by the private sector. However, it was only after 1991 (i.e. after the advent of multi-party democracy) that there was real growth of colleges from the private sector in management as well as in other types of higher education. That was the year when Kathmandu University (KU) was set up. KU set up Management School (called KU School of Management or KUSOM) in August 1993.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That was followed by establishment of Purbanchal University in 1995 and Pokhara University in 1996. Thus, there are four universities in Nepal now providing management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These universities are competing to introduce new tools and techniques in management education. For example, MBA with modern teaching-learning methodology and accordingly courses designed at these universities have helped maintain almost global standards in upper-level management education. A new brand of MBA â€“ EMBA has been introduced recently targeting practising managers. This management programme has been introduced in several private colleges affiliated to Pokhara University, Purbanchal University as well as the central college of KU called KU School of Management (KUSOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As of 2009, TUâ€™s FOM had 28 constituent colleges and 506 affiliated colleges. The latest entry (August 2011) in the website of Pokhara University shows that it has over ten colleges affiliated to it for different types of management education in the Bachelorâ€™s or Masterâ€™s level in addition to its central campus of PU School of Business. Similarly, KU has three colleges affiliated to it for such courses in addition to its central campus KUSOM. Purbanchal University has over 35 constituent or affiliated colleges for such programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These colleges offer such courses as Master of Travel and Tourism Management (MTTM) at the Masterâ€™s level in addition to MBA, MBS and EMBA. At the Bachelorâ€™s level, there are other specialised programmes as well in addition to BBS and BBA. The examples are Bachelor in Hotel Management (BHM), Bachelor of Information Management (BIM), Bachelor of Travel and Tourism Management (BTTM), Bachelor of Business Information System (BBIS) and Bachelor of Commerce Studies (BCS).&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, despite such growth in management education in Nepal, a large number of Nepali students are still going abroad for management education. While that shows the growing demand for the higher education in management science, it has lured a number of foreign institutions to set up their campuses in Nepal or forge partnerships with Nepali colleges or universities.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Growth</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Saroj Dhakal, Management Faculty at the recently established CG-CEDEMAS Institute of Management (CGCIM), feels MBA has now become a most sought after brand amongst the ones aspiring to make career in financial or managerial fields. This institute is a joint venture between Nepalâ€™s one of the porominent business houses Chaudhary Group and Englandâ€™s Centre for Development Management Studies (CEDEMAS).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Colleges offering MBA, EMBA or both degrees</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 424px; height: 987px;">
	<tbody>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">S. No.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Name of College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Affiliation</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">2.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Ace Institute of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Apex College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">National Open College (NOC)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">5.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Uniglobe College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University-Faculty of Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">7.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">8.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu Don Bosco College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">9.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Novel Academy</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">10.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidency College Of Management Sciences</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">11.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Zenith International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kantipur Hotel Management &amp; Interior Design College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">13.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">DAV College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">14.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Topper Management College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">15.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">White House Graduate School of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">16.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Campion Kathmandu College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">17.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Birganj Public College, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Maharaja Agrasen College of Management, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">19.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Management Campus, Biratnagar</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">20.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Bebasthapan (Sang) College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">21.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">King's College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">22.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidential Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nova International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">24.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Lord Buddha Education Foundation (LBEF)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Sikkim Manipal University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">25.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International Center for Academic College of Distance Education &amp; Online Studies(ICA)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">26.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Information Technology</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">27.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Institute of Banking &amp; Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Bharathiar University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">28.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">KFA Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Vinayaka Missions University (India)</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Apart from the banking and financial system, the demand for professional managers is equally strong in other sectors like tourism and hospitality, energy, agriculture, public sector and others.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As the reasons for growing attraction and development of management education Dr Bijay KC lists development in infrastructure over one-and-a-half decades, change in the trade and occupational patterns in Nepal, growth in media, information technology and development of financial sector, among others. MBA and EMBA graduates are more in demand in the private sector than in the government. KC feels that globalisation and liberalisation have spurted the demand for quality managers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Prof Dr Geeta Pradhan, Dean at Faculty of Management Studies at Pokhara University, says â€œThe growth of banks and corporate houses has definitely added attraction to management studies in the country. Similarly, MBA teaching methods has several in-built practical approaches with internships, project works and case studies.â€ She thinks such approach of teaching-learning methodology produces graduates that are competitive in the work environment and turn out to be capable managers. She added, â€œManagers are required in every field â€“ hospitals to corporate houses. This has created the demand for management graduates.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, Prof Dr Dev Raj Adhikari, Head, Central Department of Management, Tribhuvan University, says that the current growth is not of the actual business schools but in the business studies. He gives credit for this to leading four universities for the growth. He says, the number of students and resource persons is growing along with the demand for competitive human resources in the market that is also growing. Adhikari says, â€œManagement education has improved in terms of both quality and quantity.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<strong><span style="font-size: 14px;">Student Psyche</span></strong></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">MBA students are often tagged as job creators in foreign universities for their attitude summarised as: â€œWe donâ€™t seek job. We create jobs.â€ However, that attitude is not so common among Nepali students. Pradhan says, â€œStudents are not sufficiently eager and positive towards setting up their own business. When I encourage my students about coming up with such ideas, I donâ€™t see enthusiasm in them. I think they are quite lazy. Working in a bank is considered prestigious while setting up a farm by an educated person is not given respect in our society.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says, â€œMore than 95 per cent students are job seekers.â€ He says it is engraved in our culture to search for jobs rather than create one by taking risk of being an entrepreneur. However, he shares some examples of his students who are willing to take up an entrepreneurâ€™s career. â€œSome MBA graduates have established their own cooperatives and finance companies, which is quite positive.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Subas KC, Dean of KUSOM, says that most of the students in his colleges are from well-off families and they prefer easy desk jobs in banks rather than hard work, of setting up companies and being an entrepreneur.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Social psyche, parentâ€™s expectation, socialisation and schooling are blamed for this mentality of job seekers rather than job creators. In fact, MBA courses are not designed to produce graduates who seek jobs but it is designed to produce managers and entrepreneurs. Risk taking attitude is said to be missing among students and aspiring entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dhakal however points out that the level of risks to be shouldered in our society is higher than in other comparable countries including in the immediate neighbourhood. Lack of security, extortions and unfavourable investment environment are driving away graduates from setting up their own business, he argues. Julie Peters, Project Director CGCIM, says her college provides incentive to students with best ideas to set up their own business at the end of their studies to promote entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Curriculum</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management course covers a wide range of disciplines with focus on marketing, human resource management, organisational behaviour, and strategic management among others. Apart from these, mathematics, psychology, sociology, philosophy and economics are taught in the classrooms to the graduate students. These courses expect students to understand and manage the literally all operational aspects of the organisation. Management studies enhance the managerial skills by sharing of ideas, healthy discussions and project works, say experts.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari, who is also the President of Nepalese Academy of Management, said MBA course is designed to understand the changing perspectives in the business. MBA graduates are expected to understand new definitions and programmes, think strategically, make decisions and have a practical approach to any problem. The aspects make them expert managers and business leaders.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Number of Management Colleges</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 401px; height: 246px;">
	<tbody>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Courses</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Tribhuvan University</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">533</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">35</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">45 in operation out of 90</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">EMBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari shared, â€œGeneral Motors of USA has devised three â€˜Tsâ€™ concept for its human resources - technology, talent and transformation. We need MBA graduates for such transformations.â€ He adds that MBA course in Nepal is devised to produce capable leaders who can understand and cope up with new advancements and plan, organise and execute accordingly. â€œMBA is not introduced only for the sake of MBA. It was introduced to support the emerging economy by developing such human resources that can meet the requirements either through a job or entrepreneurship,â€ he said talking about TUâ€™s management programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Scholars accept that the masterâ€™s level curricula on management of Nepali universities are that of the international standards. However, they often question about the way it is delivered to students. Dr Bijay KC said, â€œThe system we follow is more or less the same as in foreign universities. Many universities have accepted the credits our students have achieved primarily due to the courses we teach. Semester system, alphabetical grading evaluation, standard text books used here are similar to western system. In some cases, students may have to take some test/examination which, I think, is normal practice everywhere for any&nbsp; foreign student.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors think that the main gap is in the teaching-learning methods. KC explains, universities have the same curricula that cover human resource, finance, marketing, organisational behavior, economics, quantitative techniques, strategy, environment and management information system with more or less similar contents.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari and KC share the similar view that most important is the treatment of the course and its delivery in the classroom, the quality of faculty, the pedagogy used and practical exposure that the students gain during the course.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Teaching-Learning Methodology</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The classes of TU MBS are mostly based on the lecture method. However, the colleges under other universities have adopted more practical and participatory methodology to teach in MBA level. These days, traditional teaching-learning method based on lecture is deemed obsolete for any discipline. For management studies, active participation of students in group work and more practical approach, along with observatory methods are considered appropriate. In an MBA class, teacher and students challenge statements, attack and defend ideas. Inclusion of other approaches plays an important role in the learning process.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says the central department of management is forced to adopt the traditional method of lecture as they have a huge number of students â€“ around 200 in a single class. He says this simply makes impossible to adopt the other style such as group discussions, presentations, case studies, etc.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Peters of CGCIM opines, â€œPurely academic approach will not work. The MBA course must take an approach of looking at company case study and the actual issues in that company and how they address those issues. Theories may come later. Theory is something managers already know from their experience but they donâ€™t realise that they know.â€ Dhakal from the same institute argues that for a class to be participatory and active, students too must have some kind of exposure and experience. â€œBut Nepali students are straight out of the undergraduate colleges, so the teaching methodology is confined to theories alone,â€ he said. Internationally, students can enrol into MBA course only after practical experience of a couple of years as a manager.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">An appropriately designed MBA curriculum demands for more participation, personality development and attitude development. So, the classroom must be synchronised accordingly. After graduation, students enter the job market. So, the colleges must be producing graduates who can face the real working environment. Adhikari believes, â€œTeaching-learning methodology plays a pivotal role in bridging the gap between classroom and workplace. Such environment in the class must be ensured so that they can adapt to the work environment the very next day.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the business schools have tried to revolutionise the classrooms. They have introduced the concept of dual faculty in a class. Along with an academician, a professional contributor takes a class. Academician deals with the theory while the professional contributor shares his supportive working and real-life experiences. Such professional may be a Chief Executive Officer or Human Resource Manager of a bank or a corporate house.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Most graduate schools of management implement project works, participatory techniques, encourage team work, case studies and field visits and some invite visiting faculties from foreign universities. Similarly, games, participatory techniques and decision making opportunities are frequently practised in graduate schools.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">International Recognition</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The validity of degrees from Nepali universities is often questioned in foreign universities, mostly in the US and Europe. The courses adopted here, teaching method, curriculum, assessment criteria are mostly blamed for the failure of giving equal recognition to our degrees. Nepali masterâ€™s degree holders from any university mandatorily have to take up some kind of foundation course or additional credit hours in those foreign universities for them to get recognised as MBAs for employment and further degrees. Moreover, the competency of our colleges and students with the international counterparts can also be often questionable.&nbsp;Experts believe our universities and management institutes cannot be compared to the quality being offered by some universities and institutes in India and the US. However, we have been successful to devise the curriculum that is at par with the international quality for MBA as well as BBA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case of MBA, a student requires to meet certain requirements in USA to get enrolled. Unlike here, a student must have two years of work experience and must appear in the GMAT test before admission. Adhikari points these as some of the reasons why our degrees are not directly recognised internationally. However he claimed, â€œAlthough there is no direct recognition, our education is not derecognised anywhere in the world. After meeting some of their criteria like additional courses and credit hours, our degrees are largely recognised.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">One of the reasons Nepali young generation prefers foreign or international degrees to pursue MBA is the issue of recognition of our degrees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Foreign Affiliation</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A number of Nepali institutes and colleges have now presented an option to acquire foreign degrees while being within the country. However, most of these colleges are centred in the capital city Kathmandu only. It is not only the Nepali colleges that are willing to bring in foreign affiliations, but also foreign universities are interested to have Nepali affiliates. The reason is the attraction of Nepali students for international degrees and thus the potential market for those colleges.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">CGCIM is the latest institute to offer post-graduate diploma affiliated to Centre for Development Management Studies (CEDEMAS), UK. Dhakal of CGCIM says that the institute was established with the idea to provide teaching in Nepal by foreigner professors. He said, â€œThis is the concept of providing a world-class degree from Nepal. Instead of students going abroad, professors come here to teach and the cost is relatively very small for the students.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Similarly, colleges like KFA, Institute of Banking &amp; Management Studies, Lord Buddha Education Foundation and some other are affiliated with Indian universities. Kingâ€™s College, Presidential Business School, Nova International College are affiliated to International American University, USA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the quality of the affiliated university is also questioned by professionals in management and business studies. KC of KUSOM said, â€œUniversities that Nepali colleges are affiliated to are not much heard-of. Such co-operations will not contribute much to the development of management studies. It will be really praiseworthy if colleges can bring in affiliations from top universities like Harvard, Oxford or any other well-known universities or even Indian Institute of Management.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although the trend of getting affiliation with foreign university is increasing, the government universities are not feeling any threat. Adhikari of TU said, â€œNepali universities are in the forefront on the basis of competition and curriculum. We have much better course design that is customised with Nepali culture, system, economy, situation, need and expectation of the market.â€ Most of the foreign affiliations are based on the distance learning mode.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Sponsorship</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Funding students for business and management studies in Nepali college is not much practised by corporate houses. However, some corporate houses have financed a few students in some leading colleges. Apart from that there is also a trend to send the employees of the corporates to Indian colleges and institutes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors do not think that corporate houses are sending students abroad due to the crisis of trust on Nepali colleges. They believe it must be because of some extraordinary qualities that they cannot find in Nepali colleges but see in foreign ones.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However Adhikari says, â€œCorporate houses are not investing in HR for academic programmes. I have not found a single student sponsored by corporate houses.â€ Even in EMBA, which is meant for working managers, students are studying under self-financing. According to Adhikari, in other countries, EMBA students are compulsorily sponsored by employing organisations.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">EMBA</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is the course designed for working professionals who want to improve their leadership and management skills. It is relatively a new course introduced in Nepal. This programme is said to help managers learn, grow, and change in their career while working. It is the only post-experience management degree as the MBA here does not need any prior work experience.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is a two years course based on semester or trimester system. The course aims to enrich both theoretical and practical knowledge. The course requires being changed and updated to keep up with pace of the evolution in the market. Students of EMBA believe it helps to tackle the challenges they face in managerial profession that keep on arising at work. The course content of EMBA is quite similar to that of MBA with more priority on the practical aspects. EMBA colleges adopt case study, participative method, group discussions, presentations, field visits, project works as their common methods of teaching-learning, supported by lectures.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Three universities â€“ KU, Purbanchal and Pokhara University â€“ are offering EMBA courses. KU has it in its own campus â€“ KUSOM while Pokhara is offering it in its central campus as well as affiliated colleges and PU is providing it through its affiliates. Assessment criteria applied in these universities is a mixed bag of practical and theoretical written exams. Moreover, most colleges have implemented the overall performance evaluation for the grading system that is usually alphabetical.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Career Prospects and Recruitments</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management and business graduates opt for career in the financial sector which is at present the major job market in Nepalâ€™s formal sector. Students do not much prioritise other sectors than the financial institutions as their career area. Only a few students take the path of self-employment and job-creation through entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Joint venture companies are also becoming the target areas of MBA graduates for jobs. Meanwhile it is expected that the service sector, which is growing fast, will certainly attract management graduates. KUSOM has its own employment cell to coordinate job placements. Ace Institute of Management too has similar kind of on-campus and off-campus placement mechanism. Dr Subas KC said that students used to be hired by well-known corporate houses in bulk when KUSOM was the only college to offer MBA. However, bulk hiring is not much practised now, companies still reach the college searching for suitable MBAs. Apart from students searching for jobs, companies too come searching for their probable employees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although it is not so difficult to secure a job after MBA, the facilities, working environment and remuneration are quite low compared to their qualification. Dr Geeta Pradhan accepts that management graduates are not getting the pay in Nepal that they deserve.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In our market, performance-based pay is less in practice. The flat industrial pay scale is common. Although pay is determined by several factors like economy, industrialisation, market, countryâ€™s status, personâ€™s productivity and efficiency, it is believed that most appropriate pay system is performance-based, that is what exactly is missing here in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Future</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal being a growing economy, it is certain that the need for professional managers will grow in almost every sector. With the creation of job and growth of market, management graduates will be demanded by both private and public sectors. There are sectors like hydropower might just gradually open up as attractive jobs for new graduates The job market that is confined to the banking sector is certain to expand with more joint ventures coming, growth of service sector, more industries and growth of market.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That will lead to more demand for management graduates and management schools that produce top-notch managers. The collegesâ€™ changing trend shows that they will be able to manage to cater to the demands of the market and time. For that, the teaching-learning method has to change for the better. Similarly, the research practice that is missing among the professors must be developed. Rather than studying just what is happening in the outside world, management schools must be capable to address the evolving Nepali market realities. Without researches by the universities and professors that is almost impossible to do.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Moreover, MBA colleges are blamed for utter commercialisation. To revolutionise the management studies, they require to rise above the worries of profit and loss and dedicate themselves to bring in professional management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Experts opine that the concept of business school in true sense of the term is yet to come to Nepal. Business schools are more autonomous with definite vision, mission, and goals and operate accordingly. Adhikari says that such schools have distinct identity and existence. â€œTU is planning to develop the concept of business school. The only question is the extent of autonomy.â€ He thinks that MBA colleges are coming just for the sake of money without caring to meet their social responsibilities. The courses and academic studies must address the current needs of the country. â€œBusiness schools just with the aim to get students for the sake of business will not sustain in the future. They must take ahead business education with national and international perspectives in mind and by charting out clear vision, mission and leadership,â€&nbsp; he suggests.</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;"><br />
	</span></h3>
<h3 style="color: blue;">
	<span style="font-size: 14px;">* Alumni Speak *</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sujan Raja Shrestha received an MBA degree from Kathmandu University School of Management (KUSOM) in 2000. Currently a Management Consultant with Smart Food &amp; Snacks Pvt Ltd, he also manages his own business ventures â€“ Sovereign Education Network and Barahi Eco Farming Company.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Having started his professional career as an employee in various companies, he has come full circle in his decade-long professional journey. He says, â€œI have learned much and had the opportunity to implement management skills over the years.â€ Shrestha takes pride in having reached the companies he worked with (Himalayan Snacks, Smart Food etc), to new heights. He emphasises that a corporate entityâ€™s success is the result of team work to a large extent. And almost in the same breath, he doesnâ€™t forget to remind, â€œTo manage and mobilise a team well enough to obtain maximum output, we require excellent management skills.â€ He adds that these skills can be learnt and it certainly helps having a management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Shrestha believes that one must not pursue management education, particularly an MBA degree, only to find better employment or to get a promotion. â€œThe knowledge a student gathers while studying management builds his/her analytical skills better than ever before and pays dividends over a long period of time,â€ he explains. He opines that a competent management education helps students make more informed decisions with a greater probability of success.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A firm believer of blending theory and practice in management education, he expresses confidence that having successfully completed their MBA programme, the students can choose any business or profession they have their heart for and want to excel at. Shrestha hopes that most management graduates will ultimately turn employers rather than remaining employees for life. â€œI look forward to the current crop of MBAs to turn entrepreneur after getting a few years experience so that they can create jobs for others and become more productive and constructive,â€ he concludes on an &nbsp;optimistic note.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Subodh Sharma Sigdel completed his MBA (Finance) from Nepal Commerce Campus, Tribhuvan University in 2000. He also attained an additional degree with an MSc in International Banking and Finance (IBF) from University of Greenwich, London in 2010. He is currently the Chief Executive Officer of CDS and Clearing Limited.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sigdel was in the early phase of his banking career when he completed his MBA in 2000. The qualification helped him become a good leader and taught him skills related to conflict management, team motivation, plans and programmes preparation, effective communication and overall managerial acumen. After working in the banking and financial sector for more than nine years, he realised the need to get another degree that specialised in his working arena. Hence, he opted to obtain a degree in International Banking and Finance from the University of Greenwich in London. â€œThis degree has given me an excellent opportunity towards shaping my career,â€ he observes. Meanwhile, Sigdel also ran a trading institute where he trained commodity and stock investors about investing money in the market. He has been recently appointed the CEO of the first ever CDS company of Nepal, CDS and Clearing Limited which is an integral part of the capital market. â€œStudying subjects like International Capital Market and Financial Trading Techniques immensely helped me in bagging this coveted position. Besides, the IBF degree helped me with my policy making role and supervisory activities,â€ he reiterates. He credits his MBA (Finance) degree for building his career while being grateful to the MSc (IBF) qualification for shaping his career in a better direction.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€œManagement education has become extremely important for students aspiring for a career in management,â€ Sigdel asserts. He suggests that students should pursue a management degree because the market holds enormous opportunities for trained professionals. He adds that management career, today, is not limited to the banking and financial sector only. â€œCareer choices for management graduates are widening these days with new companies like Central Depository System, Commodity Exchanges, Credit Rating Agency, Mutual Funds and the concept of working as Commodity and Stock Trading Members have emerged in our economy,â€ he points out. Since these companies demand huge workforce, Sigdel advises students to attain relevant management education and fashion successful managerial careers for themselves.</span></div>',
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			'description' => 'During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly.......',
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	(int) 1 => array(
		'Article' => array(
			'id' => '472',
			'article_category_id' => '40',
			'title' => ''We Are Compelled ToStudy Foreign Cases' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Prof Dr Geeta Pradhan</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dean, Faculty of Management Studies</span><span style="font-size: 14px;"><img align="right" alt="" border="1" height="215" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/geeta pradhan(1).jpg" style="width: 166px; height: 215px;" vspace="10" width="166" /></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Pokhara University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR (Human Resource) Management and MBA in Management Information System. These courses produce expertise that is required for any corporate house or enterprise. Other course that I want to introduce is a Masters programme in Public Policy. I think the current education does not well equip those going for government and civil services.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There is a remarkable growth in management colleges and students in Nepal. When I joined Pokhara University, there were very few students. In 2008, there was just one student in MBA. In Pokhara, there was a belief that MBA will not succeed. With the help of some officials from the university, I visited banks, institutes, chambers of commerce for searching students. They all assured to cooperate. Then, we received applications from 80 candidates while we had only 50 seats. At that time in BBA, the dropout rate was high. Admission was announced thrice for one BBA session. The growth of banking sector has also created demand for capable managers. Management studies with practical approach of teaching like internships, project works have helped graduates to contribute competitively in the organisations. Hence, there is growth in attraction to these courses and management schools.This course produces capable human resource and managers who are required in every field â€“ hospitals to corporate houses. Emerging financial institutions and corporate houses have also increased the demand for management graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sending students to study in foreign colleges. Does that mean they donâ€™t trust our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is not that our education is bad but we have not achieved their level, which we can achieve easily. I blame our attitude to ignore rules, regulations and the system. Despite having excellent course design, students are not able to perform well. If they can work accordingly, they will be capable, honest and manage their time efficiently.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBA graduates seem to be targeting a job in banks. Are the MBA courses designed for that only? Do you see any&nbsp; misconception in students?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That is a misconception. The MBA is for producing capable managers and entrepreneurs. Our society does not respect all kinds of works. Table work is always considered the best job but running a farm is taken in a different way. Bank jobs have become a symbol of prestige now. Very few students think of setting up their own businesses. I encourage students to find out ways to use hot natural springs around Pokhara and prepare proposals but I think students do not have positive attitude for such creative works.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Case study is what foreign universities opt for teaching. It is said that we donâ€™t have much cases within our country to study. Are we forced to study only the foreign cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case studies, frankly speaking, the trend of case writing is missing in Nepal. In my university too, we employ the case study method, which is a foreign concept. Good cases from Nepal are not being written. There are some professors who write them but still good cases are missing. We often encourage writing them but professors for some reasons are not willing to write them. I think they feel lazy. I feel we donâ€™t have a tendency to be competent and do something different. So, we are bound to study foreign cases though we have enough cases and examples in our own surroundings.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is our curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The curriculum suits the typical business environment of Nepal. However, the dialogue between academia and business is missing. Business is heading in one direction while business schools are in another.&nbsp;I often tell business houses to exchange resources but I donâ€™t know why it is not been possible to find a working chord.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Curriculum and teaching-learning methodology of Nepali colleges and universities are&nbsp;said to be traditional. What is your university doing to update your curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is true that we have traditional method of teaching and learning. For bringing some changes, students must have exposure and the teachers too need to have some inputs. They teach only what they have studied. That makes it quite difficult. When visiting faculties are selected I prefer MBA graduates from America. They have exposure to different methodologies and it is definitely different than teachers who got education here. We are revising the curriculum even of BBA and that has been approved by the subject committee. We have also included the course of business ethics. We continuously go on revising the curriculum.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the course bridge the gap between real life work place and the lessons taught in business schools?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If there were more teachers who studied in foreign universities or from abroad, bridging the gap between classroom and the real world would have been much easier. There are many constraints. When we ask students to go for some field visits they ask the university to bear the cost. That is a hindrance. To some extent, students also need to bear these expenses when it is useful for their studies and career. I think many do not understand the concept of university. In university, students are required to manage some expenses for themselves. What they do and what they learn in classroom is reflected in the real working environment.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Nepali universities are said to have weak management and the basics like exams and results are not conducted on time. What is the main problem?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The management is not a total failure but it is also true that it is quite weak. The management is unable to enforce the rule upon students and their unrealistic demands are not suppressed. In some cases, colleges themselves are involved in encouraging students for demonstrations to change the date of scheduled exams. They reason, the course is incomplete. I think infiltration of political elements in colleges is guiding it. But we have tried to bring the session back on track by cancelling vacations. The situation is gradually improving because we are also taking firm decisions. I think one of the reasons behind such practice is, most of the time students are enrolled without proper selection due to various reasons.</span></div>',
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			'created' => '2011-10-11',
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			'keywords' => '',
			'description' => 'New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '471',
			'article_category_id' => '40',
			'title' => ''MBA Has Become Competitive Now' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dev raj adhikari.jpg" style="width: 190px; height: 245px;" vspace="10" /></span><span style="font-size: 14px;"><b>Prof Dr Dev Raj Adhikari</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Head, Central Department of Management</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Tribhuvan University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU) - the oldest one in the country - are contributing to the growth of management studies. Along with the growth in number of students and faculty, there is also the growth in demand for the products in the market. Market is also growing. Currently, we can see quantitative growth but there is impressive qualitative growth too. Recently, a report of Ministry of Education has revealed that the number of students going for foreign education has dropped. Management education has grown both qualitatively and quantitatively.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are talking about globalisation today. That automatically reflects in our curriculum. Our curriculum cannot always be taught in the same old traditional methods because our students have to compete in the international market. The demand is growing for&nbsp;change and advancement in the management studiesâ€™ curriculum. The teaching-learning model also needs to be reformed. Some schools have adopted really good methodology but in our MBS, we have not been able to achieve the global standards due to a large number of students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How have the management schools tried to change the traditional practices?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the institutes are practising methods like project works, case studies and participatory techniques in classrooms. They are encouraging team work and group work. Students are often taken for industrial tours and field visits. Professionals and entrepreneurs are giving lectures while visiting faculties are being sourced from foreign universities. These are now being practised in Nepali colleges. They are trying their best because they are getting money and need to satisfy the parents and students. I have seen bank CEOs addressing the classes. Some institutes even have the system of dual faculties in which one is academician while the other may be a professional. Academician teaches theory while the professional shares his real work-life experiences. He may be the HR director of a certain bank or even a CEO. Now, MBA has become competitive. Market will judge in the future if one can or cannot deliver. Teaching-learning method is not that much traditional as in the past. In MBS, traditional method is also being used. The most popular method in the world is the lecture method. When the classroom is small and focus is on a particular group, we can go for case studies, game theories, project works, participatory techniques, create decision making opportunities. But in a large class, the same is not possible. It is being traditional because we donâ€™t have environment to use new tools and pedagogy. Some classes are traditionally run but the cases have changed a lot compared to the past. In the coming ten years, there will be a lot of changes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our competency compared to the level of regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is very difficult to say what exactly is our competency compared to other universities, especially those in India. Currently, in the growth of Indian management education, quality is especially seen in state universities and management institutes like IIM, Ahmedabad. We have not reached that level of quality in education. Here, Pokhara, Kathmandu and Purbanchal universities are leading in MBA. They have changed with time and have created the course well with a lot of planning but so far the implementation is missing. We are lagging behind in regional and international perspectives. But the TU MBS can be easily compared to Indian quality. Curriculum is good and our MBS course can be compared with good universities in India. So, what we can safely say in MBA we still have to do a lot of things because growth in business here does not have the same pace as in India. Our internship level can by no means be compared with theirs. We have also not been able to provide facilities and educational environment that Indian MBA students get. In such a case, we canâ€™t compare with them. Nevertheless, we are trying our best; our universities are trying for something similar.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Are our colleges, courses and degrees internationally recognised?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">TU is recognised worldwide as the largest university of Nepal. Any masterâ€™s degree holder from TU need to do further studies if he wants to pursue further studies in the US. MBS graduates again need to do MBA there. In USA, to do an MBA, one must compulsorily have two years of work experience but it does not apply here. And they must also appear in GMAT. Here one can directly join MBA after bachelorâ€™s degree. So, there is no direct recognition but our education is not derecognised anywhere in the world. Though they donâ€™t give exact equivalence, after completing some credit hours and some courses, our degrees are recognised well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We should try to develop professional entrepreneurship as well. It is engraved in our culture that after completion of studies, everyone must do some kind of job. Everyone expects to get a good job. But there are some students who really want to develop as a professional or an entrepreneur. Some of my own students are aiming to create jobs through their entrepreneurship. More than 95 per cent students are job seekers either in national, Indian or international markets. But only a few are willing to develop as a professional or an entrepreneur. Some MBA students have even established their own cooperatives and finance companies.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the management course bridge the gap between real life workplace and the lessons taught in classrooms?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We need good teaching-learning method to bridge the gap between classroom and the workplace. The environment in the class must be such as the students can begin working immediately after completing the education and can adapt to the work environment. Similar kind of pedagogy, customisation and workplace-friendly curriculum must be selected. Then, we need the curriculum in accordance to the business expectation. That will bridge the gap between the classroom and the workplace otherwise there will be a difference always. If we can not bridge this gap, organisations will have to invest a lot in training and development of the new recruits from the management stream. So, these days, management colleges are focussing on training for a banking career to MBAs as the banking and finance sector is our major job market. If the gap is to be bridged, we have to make the classroom workplace friendly and design the curriculum accordingly. We have that curriculum but if we also have the similar delivery we can minimise the gap.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If you look at it through competition and curriculum, our local universities are in forefront. If you compare the foreign university curriculum with Nepali counterparts, we have a much better curriculum. Nepali universities are already customised with local environment while Indian university cannot be customised. You have to run according to their curriculum. Our curriculum is customised according to our culture, system, economy, situation, need and expectation. That way our curriculum is excellent and those courses have not proven any threat to us. But that does not mean it is time to stay idle. The way foreign universities are coming, they have changed the teaching-learning method. Concept of dual faculty has been introduced in Indian university affiliated colleges. It is a challenging system. That will challenge us in the future. British, American and Indian universities are willing and are coming to Nepal. However, they are mostly offering distance education, so far. Till date, we have a strong curriculum and we are not facing any threat from universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most of the leadership positions in the private sector banks and corporate houses are being held by MBA graduates from foreign universities. How do you react to this?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Companies must have found some difference in these foreign graduates. They must have certain unique personality and knowledge. But that knowledge, skill, efficiency will be transferred gradually to ours too. This will not be the same forever. In the days to come, Nepali MBA graduates can also do that. It is only a matter of time. It may take a few years or a few decades. India has a long history in management studies and MBA while we have just begun teaching MBA. Such things are not negative. We can learn from them and analyse what we lack and what special they have got. Students must self actualise and they can develop themselves accordingly.</span></div>',
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			'description' => 'The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU).....',
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			'title' => ''Corporate EntitiesKnow The Importanceof Having MBAs' (September 2011)',
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			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="0" height="192" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dr bijay kc.jpg" style="width: 159px; height: 192px;" vspace="10" width="159" /></span></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Dr Bijay KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty Prof and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think itâ€™s going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for management graduates in the job market. However, I must admit that we must adapt ourselves to the fast changing scenario of business education. The schools should also become receptive to the needs of the business enterprises because ultimately itâ€™s they who are going to provide employment to the students graduating from these schools. I also feel that the government should take an initiative to come up with a new university that will specialise in management studies. At the same time, such a university should permit only such schools and colleges that have proven themselves in the field of management education. Another important aspect is that the faculty of business schools must have a say in matters related to examinations and quality control because they best understand the needs of the students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Is the Nepali business schoolsâ€™ curriculum well prepared to meet the demands created by globalisation? What is SAIMâ€™s curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We, at SAIM, offer a programme called MBA Global Business in affiliation with Pokhara University which, fundamentally, exposes our students to global management practices. We do have some courses on entrepreneurship which are targeted at developing job creators of the future but a majority of the students prefer to join different sectors as professionals. As for a job creator, an entrepreneur must also have some knowledge on marketing, finance and resource etc. But I do realise that to make our programme more entrepreneurship-oriented, we need to have more courses included in the curriculum by our parent university.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Could you tell us about the teaching methodology at SAIM? Are the students forced to study foreign cases primarily because there is a dearth of home-grown cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Yes, we mostly use foreign case studies and I see no harm in using those. These cases are actually very good and a management educationâ€™s basic purpose is to develop the skills of the students. We do have a few good home-grown cases which we use. You must understand here that good case studies are hard to come by and writing them is not an easy job.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sponsoring their fresh employees to study in foreign colleges. Do you think there is a lack of trust, on their part, in the quality of our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think more than anything else it is to make their employees gain further knowledge and equip them better. If they didnâ€™t have faith in the quality of education we offer, they wouldnâ€™t hire them in the first place. My feeling is that management education is a lifelong asset for the students. Getting an MBA degree does not mean that the students know everything about management. My recommendation to the corporate houses is that after three-four years of work experience, they should look at sending these students for further studies abroad.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">A lot of students are going abroad to pursue management degrees? Why are the local colleges not able to retain them here?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The fact of the matter is that, now-a-days, a lot of Nepali students want to pursue management degrees. Itâ€™s a classic case of demand overwhelming supply as the number of seats available in Nepalâ€™s business schools is not adequate to accommodate all these management degree aspirants. We understand that there is a need for more business schools and more seats. At the same time, we cannot afford to compromise on quality. Among the many business schools operating in Nepal, there are only about four or five of them providing quality education. This limited number of colleges can accommodate around 200 students at best. Itâ€™s but obvious that a lot of students not finding a seat in these colleges will look to go abroad. Besides, some good students may get admission to world renowned business schools like IIM or Harvard, for example. In such cases, we cannot be unfair and ask them to stay back in the country for our own selfish reasons.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is your curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The basic concept of management education is the same around the world. For example, a course on inventory management is same whether in the US or here in Nepal. A lot of cases provide a wider perspective of problems therefore; we look at applying them in the context of Nepal. In some cases, we have to resort to modification to suit the business needs locally.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Why do you think there is tremendous attraction to business studies these days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is because of the job opportunities available to management graduates in recent times. In the last decade-and-a-half or so, corporate entities have realised the importance of having them in their ranks. It has become relatively easier for MBA graduates to start professional careers based on their education. Besides, these graduates have performed and proved themselves at their respective workplaces which have compelled companies to hire suitably qualified management graduates. So, job opportunities coupled with career enhancement prospects have been instrumental in attracting scores of students towards business studies of late.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think MBA graduates from Nepali business schools are paid lower than they deserve?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As far as remuneration is concerned, it basically differs from company to company. From the companiesâ€™ perspective, if they want to have bright students working for them, they must be prepared to pay handsomely to attract them. What also matters is an individualâ€™s ability, he/she must be prepared to perform and prove his/her worthiness to command better remuneration. Having an MBA does not automatically guarantee an excellent pay. I am sure even if some students may begin their careers by agreeing to work for a package that is less than their expectation levels, they can always prove themselves first and then demand a better pay package.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus recruitment at SAIM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">At the end of the two-year programme, we prepare profiles highlighting academic background and credentials of all students that are passing out and distribute the profiles among the interested companies. A lot of these companies evince interest in particular individuals so we act as a link between the two. Itâ€™s both established companies as well as upcoming ventures that hire our graduates.</span></div>',
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			'description' => 'I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for.......',
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			'id' => '469',
			'article_category_id' => '40',
			'title' => ''We Want Our MBA Graduates To Become Job-Givers' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="1" height="183" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/pro subash kc.jpg" style="width: 142px; height: 183px;" vspace="5" width="142" /><b>Prof Subas KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post Graduate Diploma in Training and Development from University of Manchester, UK, his areas of specialisations include Human Resource Management/Development, Organisational Behaviour and Organisation Development. He previously worked as the Director of Centre for Management Innovation (CEMI) at Nepal Administrative Staff College and as a Training and Research Officer for the development of cooperatives in the government. In an interview with <i>New Business Age</i>, Professor KC expresses his ideas on the importance of management education in Nepal and recommends better quality to get closer to international standards. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think management education is going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think the growth has been pretty good. A number of business schools have opened in recent years as a result of the increasing demand for business education. From the perspective of both demand and supply of business education, it is a very encouraging and healthy development we have here. However, I canâ€™t say the same from a quality perspective. All the business schools in Nepal need to substantially improve their quality levels. We need to be able to supply competitive products in the market particularly because they have to compete with business graduates arriving from western universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I believe that our society is going through a process whereby it is trying to managerialise itself. What we lacked in the past was a managerial approach to address our issues and problems. However, if you look at the history of economic, social and industrial development of the western societies, you will find that they went through a managerial revolution at some stage or the other. Therefore, we need managerialisation of values, ideas, attitudes and perspectives among others. A manager looks at things differently than a person who is not trained as a manager. Our society and economy are in the process of modernisation so we need to managerialise them accordingly. This is another reason why the demand and value for management graduates have tremendously increased. I only hope that itâ€™s not a passing fad and the demand for MBA graduates will continue to grow. As for managerialisation, the process has already begun and the evidence is for all of us to see but I am not happy with the pace of it. If the existing process accelerates and catches momentum, we will need more professionals and graduates with adequate training in business administration. Therefore, I am confident that the value of MBA education will continue to grow at least in the foreseeable future.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is the competency of business graduates produced in Nepal compared to those from regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As I just mentioned, we need to maintain our competitiveness if we want to be part of the globalised economy. When we compare home-grown graduates with the ones who have graduated from western universities or the best universities in India, we are slightly behind in terms of quality. Itâ€™s not necessary that everyone who has a business degree from abroad is better than the graduates produced in Nepal. However, it would be unfair to compare our graduates with the ones from IIM, Harvard or Wharton. On the whole, MBA graduates from good business schools in Nepal are at least at par with business graduates from average or above average universities in India and elsewhere. But the business graduates from mediocre business schools in Nepal are far behind in terms of quality. Though it will take plenty of time, effort, resources and dedication, we at KUSOM want to improve the quality of our graduates to enhance their competitiveness. We are certainly on our way to make our graduates as competitive as possible.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you analyse the motives of students behind pursuing management education now-a-days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s definitely very good from the perspective of business schools. However, itâ€™s not too difficult to explain this explosion of interest in business education. There are a couple of reasons for the strong desire on part of the students to pursue business education, particularly MBA. You must understand that MBA is a global brand. With increasing exposure to the rest of the world, parents as well as students have become aware of this brand and its value. The brand value of MBA was always there worldwide but it arrived slightly late in our part of the world and it has now caught on. An MBA programme is a package which prepares its graduates for taking on diverse and competent roles and it gives them an edge over other education. This ultimately helps them put their best foot forward in the job market as well as while taking over family businesses or turning entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How has KUSOM tried to change this traditional practice?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Without talking about the pedagogy of education, we cannot talk about MBA. In fact, worldwide, it is an educational process where you would find different methodological approaches compared to other disciplines. We are trying to follow different approaches to train and educate our MBA students. We follow case-based methods and a lot of times, problem-based method of teaching. We give students problem-like situations, either real-life or imaginary problems, and we ask them to first analyse the problem using theoretical concepts or models and then come up with recommended course of action. We also apply project-based method of learning where students are given real-life problems. They have to reach out to several industries and organisations, interact with the managers, come up with real data, prepare a report and finally make a presentation based on all these. Even in a classroom environment, we create what we call interactive and group-based learning approach. Students are divided into small groups and made to discuss issues and problems among themselves so they learn through and with each other. This cross-breeding of ideas generates new ways of looking at things. We have been the pioneer and leader in using more innovative approaches through these three methods of learning namely problem-based, project-based and interaction-based methods.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s a tricky proposition and to be honest with you, I am not happy about the whole idea. The foreign universities that some business schools in Nepal claim to have an affiliation with are not prestigious universities by any means. I would rather like to see business schools establishing some kind of affiliation with Harvard, Kellogg, Wharton, IIM or London Business School. I will be the first one to welcome affiliations with these trusted names because it would help us raise the quality of education here. We at KUSOM, too, will be under pressure to raise our level of competency. If we are not able to bring in prestigious universities, then probably it makes more sense to pool our resources together and invest it in our own MBA education. Besides, MBA education is locally sensitive to some extent where several courses need to be customised to meet the requirements of local businesses and organisations. For example, itâ€™s no point teaching students the US copyright law. Simply having the tag of a foreign university does not ensure quality education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think the new MBA colleges have been able to address issues that the older MBA colleges lack?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Not really. In any sector be it education or otherwise, our culture and psychology is such that rather than innovating, we simply follow the leader or a successful example. KUSOM had the advantages of being the first mover but it did commit its share of mistakes. However, the colleges that followed us failed to learn lessons from our mistakes. In Nepal, we donâ€™t have this culture or psychology of critiquing that brings forth positive evaluation of others. I would be happy if the business schools in Nepal learn from each other as far as successes are concerned. And of course, it would be great if they could also learn from each otherâ€™s mistakes and donâ€™t repeat them. It would go a long way towards enhancing the quality of management education in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBAs target a job in a bank. Is that only what the MBA course is designed for? Do you see any misconception among students in this regard?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">To be honest, we donâ€™t advise or encourage students to build their careers in the banking sector <i>per se</i> but the reality is that almost two-third of our students end up working for different banks. MBA course is not designed to develop people for the banking sector only. However, the fact is that banking is among the fastest growing sectors and 90 per cent of the students, while interviewed for intake, say that they want to join a bank after graduating. Another reason is that the banking sector has some very iconic figures and a lot of students seem to have their role models and corporate leaders associated with this industry. Compensation package in banks are more attractive compared to other sectors which is another factor. Besides, a lot of our students come from well-to-do families so they want to work in banks for reasons of convenience. I am sorry to say this but it is a wrong career model for MBA graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">On our part, we are consciously orienting our students to think in terms of careers outside the banking sector. Our emphasis is on entrepreneurship and we want our MBA graduates to become job-givers rather than become job-seekers. A majority of our students joining banks is actually alarming for us. We donâ€™t want to attach our MBA programme with banking career only because that will be suicidal for us. We are working to make sure that our students diversify their career choices.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus&nbsp; recruitment at KUSOM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We have an excellent track record on recruitment as our graduates are readily absorbed in the job market. And, some of them land a job even before they complete their programme. All our graduates so far have found employment within months of graduating and have gone far in life except for those who donâ€™t want to work for others. There are some graduates who either turn entrepreneurs or join their family businesses. We have a unit here called â€˜PlaCeâ€™ (Placement Cell) supervised by an Assistant Professor and supported by a couple of alumni in the team. In this context, we are organising a job fair on September 2 for which we have sent out invitations to about two dozen companies. This job fair will create a platform for employers and the potential employees. Also, in the last term of the programme, we train our students in job search. We have recently reorganised our placement cell. Now, people associated with it have come up with an excellent plan. They maintain a database of our graduates and some of the industries which have openings for fresh MBAs. One aspect that is missing but I would like to add to our placement efforts is appointment of a professional counsellor. We do job counselling to the extent we can but it is a specialised area so we hope to have a trained job counsellor or psychologist who can do a psychometric analysis of the studentsâ€™ career potential and advice them accordingly.</span></div>',
			'published' => true,
			'created' => '2011-10-11',
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			'description' => 'Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post........',
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	(int) 5 => array(
		'Article' => array(
			'id' => '428',
			'article_category_id' => '40',
			'title' => 'Economic Policy Deflections (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<strong><span style="font-size: 14px;"><i><img align="left" alt="economic" border="1" height="316" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/cover(1).jpg" style="width: 315px; height: 316px;margin:10px;padding:10px;" vspace="10" width="315" />By Achyut Wagle</i></span></strong></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">A</span><span style="letter-spacing: -0.05pt;">t present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is veering more towards the replay of 19th century model of state-controlled, putatively self-sufficient â€˜nationalistâ€™ and thus effectively an isolationist paradigm. The policy shift seems to have completed a full-circle from the campaign of self-sufficiency, trumpeting of fulfilling basic needs, then open-market-oriented liberal policies to the present one marred with confusion but decidedly intended to execute state-controlled economy. </span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Apparently, as elsewhere, the vicissitudes in the Nepali economic policy has been analogues to the nature of the political dispensation the country adopted in different points in history. The externalities too have their share of influence in shaping these policies. Such an influence is surely growing with the changing world order, shifting of epicentres of economic activities and, of course, with dramatically increased communication and transportation connectivities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Vicissitudes</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal presented its first national budget in 1952. Until the fall of Rana oligarchy in 1951, Nepal remained primarily a vassal state. Any economic policy under a 104-year long Rana rule used to be based on the whims of the ruler and that too, related only to the land tax and management of major temple trusts or â€˜Guthisâ€™. Back then, almost cent per cent people relied on agriculture of subsistence nature. State hardly spent for developing infrastructure, public delivery and services systems. The fall of Rana rule and dawn of democracy in 1951 February definitely heralded a new era both politically as well as economically. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first budget had three prime policy focuses â€“ expansion of education, promotion of co-operative like structures at the village level to increase agricultural productivity and monetising the economy to the extent possible. This also welcomed the American aid in the country thus far remained largely closed, except for British and Indian diplomats, for the outside world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Those initial policies were fairly realistic to Nepal given the socio-economic realities of that time. But, the political squabbles and power struggles overshadowed the implementation of them for at least a decade to come.&nbsp;However, despite politically a fluid situation, mid 1950s marked as a major milestone â€“ mainly in two respects â€“ in 1955 Nepal Rastra Bank (NRB) was established and in 1956 Nepal adopted its first five-year plan. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">One of the major objectives of the NRB was to replace the Indian currency, which was widely circulated in Nepal, by the Nepali currency. Second one was to speed up the process of monetising the economy in place of widely practised barter system in goods and labour.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first plan focused on transport and communication infrastructures. A substantial allocation was made in developing the administrative structure all across the country. But before the completion of the first five year plan due 1961, political coup dâ€™Ã©tat by the then King changed the whole economic paradigm, development priorities and naturally their outcomes.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Flip-Flops of Panchayat</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The second plan was only for three years by lapsing a year. It was prepared by the National Planning Commission, a Russian style central planning mechanism, which still exists with very little variation.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">From the third five-year plan on, the partyless panchayat system under the direct rule of the King imposed a guided development policy. The economic policies were rather random mix of socialistic and capitalistic overtures. The state heavily invested in setting up state-enterprises of all sorts â€“ manufacturing, services and deliveries. This was an era of â€˜generousâ€™ foreign aid and Nepal was opened to all hues of them, albeit, with caution not to politically destabilise the largely totalitarian panchayat polity. Local panchayats were the political-administrative channels employed to carry out economic and development activities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The seventh five-year plan (1985-90), the last of panchayat era, made two major policy departures. First, the plan categorically pronounced to work towards meeting the basic needs of the people, under the slogan coined as â€˜elevating the peopleâ€™s living to Asian standardsâ€™. And, second, it adopted a ground-breaking policy flexibility of inviting foreign direct investment and improving the performance of the state enterprises as recommended by Structural Adjustment Programme (SAP) piloted by the International Monetary Fund (IMF). During this period, apart from several foreign investments in tourism related industries, two foreign joint-venture banks, Nepal Arab Bank (Nabil) and Nepal Indosuez Bank were established. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Openness</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The reinstatement of multi-party democracy in 1990 began an era of economic liberalisation in Nepal too. The political change delayed the eighth plan by two years. But the eighth plan (1992-97) firmly advocated the privatisation of and divestment from the State Owned Enterprises (SOEs) and open market policies across all sectors. Undoubtedly, the forces of globalisation and international trend of reclaimed openness through democratic governance in former USSR and Eastern Europe contributed to these developments. Whatsoever, this is perhaps the â€˜golden eraâ€™ in terms of economic policy formulation and growth in Nepal. During this period, private sector investment was impressive. Airlines, hospitals, educational institutions, banks and manufacturing units were set-up by private investment. Public investment in infrastructures, mainly roads provided firm basis for urban access to villages. The ninth plan was generally continuation of the eighth plan. But the growth spirit was dampened by the armed insurgency initiated by the CPN-Maoist in 1996 February. Amidst fear and uncertainty, the economy dragged on. But the growth path was already truncated before the end of this plan in 2002 due to spread of violence in the country-wide scale, destruction of infrastructure and absence of any substantive private investment. Despite all odds, the GDP growth in the 1990s was about five per cent annual average.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Poverty Focus</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The tenth five-year plan was adopted through wider consultations with donor community led by the World Bank and other stakeholders. The whole plan was baptised as Poverty Reduction Strategy Paper (PRSP). True to its name, its focus was on poverty reduction with added dimensions like putting women in the forefront of rural poverty reduction strategies. An interesting policy link was introduced between the structural and legal reforms and the poverty reduction. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">At the very beginning of the plan, Nepal Development Forum was organised for the first time in Nepal. As the Maoist insurgency had become widespread, it also tried to look into the links of the factors like poverty, unemployment and social unrest or insurgency. Interestingly, however, the main policy basis adopted in 1992 that emphasised on the free market economy continued till the tenth plan that ended in 2007. One of the highlights of the tenth plan was Financial Sector Reform Programme (FSRP) that aimed to achieve the central bank autonomy and efficiency, reform in public sector banks, Rastriya Banaijya Bank, Nepal Bank Ltd and Agricultural Development Bank. Several other institutional set-ups like Credit Information Bureau, Debt Recovery Tribunal etc were added. Substantive legislative reforms were made, including a composite Bank and Financial Institutions Act 2007 (BAFIA). Reform in the capital market was another important agenda which has only partially achieved.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Some of highly ambitious reform agenda like bringing the financial giants like Employeeâ€™s Provident Fund and Citizen Investment Trust under an effective regulatory and supervisory ambit and establishing an Asset Management Company remained untouched. Despite generally appropriate policy directions in the later years of the tenth plan, the focus on implementation got immensely diluted. Among many other things, the process of privatising SOEs did not go ahead as expected.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">On the Reverse Gear </span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After signing of Comprehensive Peace Agreement with the Maoists in 2007, the discourse on economic policy has taken a backseat. The Agreement and the election for the Constituent Assembly both established the apparent dominance of the communist forces in Nepali politics. This not only changed but reversed the very orientation of national economic policy. Since then, no five year plan has been formulated. Two interim plans of three-year each were adopted in view of the prolonged political transition.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Contrary to the general expectation that the post-CPA period would create more conducive atmosphere for economy to grow, the economic performance has gone from bad to worse. The policy confusion is at its core. The communist forces, particularly the UCPN- Maoist is oscillating between proletarian dogma of state-controlled, distributive economy and present day global realities that demand openness and interdependence. The partyâ€™s heavy political reliance on its trade unions have made them unruly and major source of industrial disturbances.&nbsp;This has telling adverse effect of spatial nature on manufacturing and exports, new investments and employment generation. In a nutshell, Nepali economy is again going back to the era of â€œeverything done by the state.â€ Recently it has created new state-owned corporations like Hydropower Development Bank. No government policies assertively talk about privatisation and reform. In a bid to balance the international realities and communist indoctrination, the racing horse of growth has turned into a camel.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">For the last couple of years, the Maoist-UML coalition is in power. It has vehemently pushed a three-pillar â€“ government, cooperatives and private sector â€“ concept of economy which has irked and made apprehensive to the private sector regarding its role and treatment from the state. The private sector is unwilling to consider the cooperatives a separate sectors but the subsector of the private. Given nature, scale and GDP contribution, this proposition seems justifiable. But the more left-oriented policy makers have seen cooperatives as the substitute to the â€˜commune styleâ€™ operation of the economy, thus the emphasis. The cooperativesâ€™ contribution to the national GDP is estimated to be meagre 2 to 3 per cent.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Of late, the donor community and the potential investors â€“ both foreign and domestic â€“ seem to have lost interest in Nepali economy owing largely to absolute lack of policy predictability, growing apprehension of infringement on private property rights and disturbed industrial peace at the hands of ruling-party hoodlums and even stateâ€™s failure to bring them to&nbsp;justice.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Future</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal apparently does not stand at a point of immediate course correction so as it could regain the lost trust and re-ignite the growth engine. There are two main reasons for this: first, the communists, particularly the Maoists are still essentially against the concept of giving the private sector a lead role in economy.&nbsp;Not only that, their anti-private sector rhetorics is often repeated in this or that form. Recently, they have announced that â€˜allâ€™ party leaders would pull-out their children from private schools; purely a futile and demonstrative move. Therefore, until, the party recognises the private sector as major player in the economy and reflects the same in both â€“ policies and actions, economy is unlikely to come out of present sluggish pace of growth â€“ 3.5 per cent in the last fiscal year.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The second is the complete absence of the economic policy debate in all major political parties. Any economic policy introduced so far by any party or the government is not an outcome of all through meaningful debate from the local to the central bodies in a manner a democratic outfit should ensure for ownership and the implementation of these policies. Only adoption of this practice can bring the economic agenda to the forefront of the national debate and the policy predictability could also be ensured. </span><br />
	</span></p>',
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			'description' => 'At present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is.....',
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	(int) 6 => array(
		'Article' => array(
			'id' => '427',
			'article_category_id' => '40',
			'title' => 'Sorry State Of SOEs (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;"><strong>By Pinaki Roy</strong><br />
	Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government will provide over Rs 1.77 billion to the state-owned enterprises (SOEs) as subsidies in the current financial year while another Rs 1 billion will come in as foreign grant and loan. The subsidies to the SOEs for FYs 2009-10 and 2010-11 stood at Rs 1.54 billion and Rs 1.97 billion, respectively. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Most SOEs in Nepal are in loss for a long time now. Even the ones that are making profits are because of their monopolistic nature of business. However, itâ€™s inevitable that they too stand to come under pressure once competition intensifies. For example, Nepal Telecommunications Corporation (NTC) is being increasingly challenged by Ncell, a leading mobile telephony brand in Nepal. Most SOEs that are registering mounting losses year after year owe it mainly to political interference and corruption within these public corporations. The high profile Nepal Electricity Authority (NEA), Nepal Oil Corporation (NOC) and Nepal Airlines Corporation (NAC) are among the notable SOEs that have been making losses for as long as one can remember. Suresh Kumar Regmi, Under Secretary at Corporation Coordination and Privatisation Division of the Ministry of Finance (MoF) says, â€œThe corporations must try to become profit making entities on their own instead of expecting help from the government all the time.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Keeping these SOEs alive and kicking essentially means that the state has to dig deeper into its coffers to provide for them. The same money could have been invested otherwise on development. Among the most glaring failures are those of NEA and NOC that have miserably failed to adjust prices in accordance with evolving market dynamics. NEA sells electricity to its consumers at Rs 6.57 per unit as against its cost of Rs 8.97 per unit resulting in a loss of Rs 2.40 per unit. Its accumulated loss of around Rs 19.47 billion exceeds several folds to its total asset value. Similarly, NOC is under Rs 15 billion deficit currently due to heavy losses on petrol, diesel, kerosene and liquefied petroleum gas (LPG) prices. To make matters worse, it is plagued with corruption, political interference and poor governance. The government has no choice but to bailout these SOEs year after year because electricity and fuel are basic services that people of this country cannot be expected to live without. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The question arises as to how long can the state rescue the loss-making SOEs by compromising on development expenditure. NAC â€“ once the pride of the nation â€“ has gone from bad to worse with losses amounting over Rs 2 billion. Boasting a sizeable fleet of 21 aircraft at one point of time, it is left with only three small aircraft that fly domestic routes and two medium sized jets. Among the biggest foreign currency earners not too long ago, NAC today merely watches in despair other domestic and international airlines snatching away its market share. Never-ending controversies on aircraft purchasing, political meddling with appointment of staff and loans have hit the corporation hard in the recent past. The employees appointed by the public enterprises (PEs) stood at 33,603 in FY 2008-09, while this figure dropped slightly to 33,526 in the succeeding fiscal year. The average monthly expenditure of these employees reached Rs 34,126 in FY 2009-10.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The taxpaying populace is infuriated because its money is funnelled into these failed enterprises while development activities and service delivery are taking a beating due to, among others, inadequate funding. Furthermore, there has been a lack of genuine intent to reform or privatise the loss making enterprises. The SOEsâ€™ survival now stands purely for political reasons. Their existence does not add significant value to the countryâ€™s productive capacity. During FY 2009/10, 22 PEs earned net profit, whereas 14 PEs recorded loss; some of them had negative net worth. The governmentâ€™s investment in these SOEs has reached a whopping Rs 84.91 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The total operating income of these enterprises in FY 2009-10 registered an increase of 21.63 per cent over the previous FY and reached Rs 130.98 billion. While the operating income of service sector enterprises increased by 70.2 per cent, the industrial sector enterprises registered the least increase in operating income at 4.2 per cent. The net fixed assets of 36 enterprises that totalled Rs 133.740 billion in the fiscal year 2008-09, reached Rs 139.365 billion by the end of the fiscal year 2009-10, an increase of 4.2 percent. While analysing the entire profit and loss of the 36 PEs, the net profit of Rs. 10.55 billion they had earned in fiscal year 2009-10 grew by Rs 8.3 million in the fiscal year 2010-11. However, if three major profit making SOEs are taken out, these statistics cut a sorry figure in itself. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Akin to the case in other countries, the state enterprises in Nepal too are present in areas that could be more successfully occupied by the private sector. Incompetent SOEs have blocked private dynamism completely and, at the same time, necessitated an insurmountable financial and administrative burden. In contrast, privatisation promises to free up public assets for activities of urgent attention and facilitate improved and inexpensive services besides unlocking prospects for private sector growth. However, the Privatisation Cell of the MoF has no immediate plans to privatise SOEs anytime soon. â€œWe are not in a position to close loss making enterprises either as they provide employment to thousands of people,â€ Regmi informs on a rather helpless note. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Nepalâ€™s privatisation programme articulated in the 9th plan envisions promoting private sector participation in the economy. A number of enterprises, mostly agricultural and industrial, have been privatised since the programme began in 1992 with the government playing the role of a catalyst. However, a number of productive SOEs such as Bansbari Leather and Shoes Factory (BSLF) and Agricultural Tools Factory (ATF) have ceased to function after being privatised owing to governmentâ€™s thoughtlessness in selection modality and consultation process, and lack of proper homework while selling them. Over the last decade or so, the privatisation drive has slowed down considerably to the extent of coming to a virtual standstill.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The delicate financial health of the SOEs and their failure to adequately gratify market demands is a persistent problem that cannot be resolved by gifting subsidies and granting loans. Mismanagement, overstaffing, poor governance and accountability, competition from private players and most importantly, politics prevailing over economic imperatives have destroyed these SOEs and led them to their present dismal state. One can safely assume that unless there are radical and wholesome practices pursued such as privatisation (save the ones that are strategically linked to critical security and national interests) of these ailing enterprises, the SOEs will continue to be resigned to their fate and the taxpayers of this country will keep on bearing their burden. Worse, bailing out the SOEs of their financial chaos time and again only makes them more inefficient. Itâ€™s but tragic that the sick enterprises are encouraged to take the state and the nation at large for granted. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The Loss-making SOEs</span></div>
<table border="0" cellpadding="0" cellspacing="0" style="margin-left: 4pt; border-collapse: collapse; width: 321px; height: 678px;">
	<tbody>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border: 1pt solid white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Name of the SOE</span></b></span></div>
			</td>
			<td style="width: 59.9pt; border-width: 1pt 1pt 1pt medium; border-style: solid solid solid none; border-color: white white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Total Loss </span></b></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Dairy Development Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 325.1 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Herbs Production and Processing Company Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 136.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Hetauda Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 619.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Janakpur Cigarette Factory Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 800.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Drugs Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 485.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Udaypur Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.773 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oriental Magnesite </span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 3.597 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Food Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.107 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oil Corporation Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 8.418 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Airlines Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.557 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Gorkhapatra Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 89.7 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Television</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 760.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Water Supply Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 391.4 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Electricity Authority</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 18.230 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Agricultural Development Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 4.391 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rastriya Banijya Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 11.228 billion</span></span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>Source</i>: Ministry of Finance Report, Ashad 2068</span></div>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government.....',
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	(int) 7 => array(
		'Article' => array(
			'id' => '426',
			'article_category_id' => '40',
			'title' => 'Policy Twists For Public Enterprises (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: 0.05pt;">T</span><span style="letter-spacing: 0.05pt;">he budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and ensure efficiency of public enterprises. However, this yearâ€™s budget has also mentioned a policy to disinvest the government shares among general public.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The latest budget is a step backward on privatisation policy adopted by previous governments. The budget presented by Dr Ram Sharan Mahat for the fiscal year 2007/08 had proposed a gradual privatisation of the state-owned enterprises. Then, the budget of 2008/09 presented by Dr Baburam Bhattarai of the UCPN-Maoist led government reversed the policy of privatisation. Next yearâ€™s budget by Surendra Pandey gave continuity to Bhattaraiâ€™s agenda to increase investments in government corporations. Economic experts had argued against increasing the investment in state-owned enterprises instead of taking up privatisation measures.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Though there were attempts of privatisation during the Panchayat system, they were unsuccessful.. The concept of socialism faded and liberalisation came into picture after the fall of communism in Eastern Europe. Nepal could not avoid the influences of the global change. There was massive change in Nepali economic policy with the restoration of democracy as the process of privatisation of public enterprises began after 1991. Experts have it that the new initiative was taken mainly because of the pressure from IMF, The World Bank and other donors. The change was incorporated in the White Paper published by the Girija Prasad Koirala government in 1991. The policy tried to balance the public and private sectors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The Koirala government emphasised on selling the shares of public enterprises at the stock market. That was aimed at widening the ownership of the newly-privatised corporations and also to ensure competition for companies as well as consumers. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Harisiddhi Brick and Tile Factory, Bhrikuti Paper and Pulp Factory and Bansbari Leather and Shoe Factory were privatised in the first phase. In 1993 and 1994, 14 companies were selected for privatisation. Seven of them were wholly government-owned while the rest had joint-ownership with the private sector. Similarly, in the second phase, Balaju Textile Factory, Nepal Film Development Corporation, Nepal Lube Oil, Bitumen and Barrel Industry and Raw Hide Collection and Development Corporation were privatised. Likewise, Jute Development and Trading Corporation and Tobacco Development Company were liquidated.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The policy took a different turn when the Communist Party of Nepal (UML) came to power in 1994. Unlike the Nepali Congress, the UML government favoured public enterprises. The budget speech of the same year read, â€œTo lessen the financial burden of the government, a privatisation program based on economic policies of the government will be implemented. There will be separate listing of corporations that are to be privatised and those that will not be privatised. The privatisation programme will be expedited for those corporations included in the privatisation lists.â€ However the government policy could not take off as the government did not even list the companies for privatisation. Further privatisation was certainly out of question. The budget of 2001/02 tried to be most intensive and aggressive towards public enterprises. The budget presented by Dr Ram Sharan Mahat promised to set up a separate unit in the Ministry of Industry, Commerce and Supplies to coordinate and monitor the price, quality and quantity of goods and services produced by the public sector. This budget also decided to prepare strategic and organisational planning to reform managerial, accounting and financial systems of the public enterprises. Most remarkably, it also decided to convert state-owned enterprises into companies curtailing the number of board members, their functions and duties to ensure professionalism.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">On minimising the cost to government, the budget presented by Dr Mahat read, â€œThe tendency of increasing short-term benefits by neglecting social security in public enterprises and development boards will be discouraged.â€ He proposed the provision to manage pension and gratuity compulsorily through Citizen Investment Trust. Likewise, the executive chief was made liable for creating any new financial liabilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another significant proposition by Dr Mahat was to encourage the private sector investment where the involvement of the government is deemed unnecessary and where there existed a high possibility of attracting private sector.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">After 2001, 17 companies have been either liquidated or privatised. Nepal Telecommunication Company was the latest one to join the list in 2008 when its some shares were sold to the public. However, the privatisation process stalled completely after 2009/10 except for the sale of government shares of Small Farmer Development Bank to Small Farmers Cooperatives&nbsp; in 2010/11.</span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and.....',
			'sortorder' => '340',
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	(int) 8 => array(
		'Article' => array(
			'id' => '425',
			'article_category_id' => '40',
			'title' => 'What’s Wrong With Public Enterprises? (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><span>T</span><span>he government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by Bharat Mohan Adhikari. The promise made in the budget 2010/11 to form the committee has however remained unfulfilled.&nbsp;The board is expected to manage and run the corporations effectively and efficiently. Suresh Kumar Regmi, Under Secretary of Corporation Coordination and Privatisation Division at the Ministry of Finance, said the proposal to constitute the board has been sent to the cabinet for approval.</span><br />
	</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The role of the government to act as a referee for the development of economy seems to be neglected by the new budget. Rather, it has proposed the concept of an economy led by cooperatives. Obviously, private sector is thoroughly dissatisfied with the government move. Dr Ram Sharan Mahat, former Finance Minister and Nepali Congress Leader, said, â€œThe proposal of the government-owned cooperatives is not an alternative. Rather, they are against the self-help spirit of the cooperatives.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the new budget, the government has tried to democratise the selection of Chief Executive Officers and General Managers of public enterprises. Merit-based selection is expected to welcome capable and qualified leadership. Often, it is alleged that poor leadership in the corporations led to their deterioration.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Similarly, this yearâ€™s budget says, â€œA policy of disinvesting the share of the public enterprises to the public will be implemented.â€ The share of the government was Rs 82.76 billion in 2009/10 while its total loan investment in 36 public enterprises remained at Rs 84.92 billion. In the previous fiscal year, the figures stood at Rs 86.13 billion and Rs 74.60 billion respectively. According to the economic survey of 2010/11, share investment of the government decreased by 3.9 per cent while loan investment rose by 13.8 per cent.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the name of reforms, the government is funnelling billions of rupees from the state coffers as subsidy to public enterprises which are constantly failing to show their competency in comparison with the private sector. This year, an estimated Rs 2.77 billion is being provided as subsidy. Similarly, the subsidy was Rs 1.97 billion in 2010/11 and Rs 1.54 billion in 2009/10. Regmi said, â€œThe corporations will not progress if they remain dependent on the government. Rather, they must manage their operations on their own.â€ â€œWhen the private companies in the same sector can do well, why canâ€™t the government-owned companies make profit,â€ he asked.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the last fiscal year, out of the 36 public enterprises, 22 were in profit while 14 were bearing losses. None of the corporations engaged in production are in profit. The economic survey shows that the net profit of Rs 10.55 billion in fiscal year 2009/10 grew by Rs 8.3 million in the fiscal year 2010/11. The share of net operating income of the public enterprises has been 11.2 per cent of the GDP. Regmi said though the number of profit-making companies has increased in recent years, the combined profit of the corporations has not increased. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although Nepal Tourism Year 2011 is going on, national carrier Nepal Airlines Corporation (NAC) is in the worst possible condition. Similarly, Hetauda Cement and the first cigarette factory of the nation, Janakpur Cigarette Factory, are also in dire straits. Despite a monopoly in the market, it is unfortunate to see Nepal Oil Corporation (NOC) and Nepal Electricity Authority (NEA) in heavy losses. Stories of other 14 corporations are no different. Poor management, inefficiency, corruption, weak leadership, skewed policies are to be blamed for their failure.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Likewise, the net fixed asset of the 36 public enterprises was Rs 133.740 billion in the fiscal year 2008/09 which increased to Rs 139.365 billion by the end of the fiscal year 2009/10, up 4.2 per cent. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">With the liberalisation policy on economy introduced after the restoration of democracy in Nepal, the government initiated the process of privatisation, liquidation and termination of state-owned enterprises in 1993. Ever since, 30 companies have been divested of which 18 corporations have been privatised while 11 have been liquidated and one, Nepal Transport Corporation, was dissolved. The disinvestment has been carried out through the sale of businesses assets, partial disinvestment of shares, sale of current assets, leasing of buildings and land, management contract, liquidation, and termination. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector and some economists are complaining that the government has taken a regressive step by reverting to state-controlled economy from the currently liberal economic regime. Mahat said the proposal of the government brought through the budget 2011/12 is suspicious and non-transparent. â€œThe government has failed to bring any concrete policy for the state-owned enterprises. It lacks an action plan for the corporations,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Experts opine that the government should play the role of a referee. It should work for the development of the real sector and the economy but it should not involve in doing business. They say competitive market entities should be handed over to the private sector. Dr Prakash Chandra Lohani, former Finance Minister and Co-president of Rastriya Janasakti Party, says the government and the private sector must complement each other. He opines without ensuring law and order and a strong policy framework, the private sector cannot prosper. â€œFor that, competitive regulation is necessary and the government should try to minimise the risk of the private sector. However, this yearâ€™s budget does not talk about vision and roadmap for the private sector,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although much criticised, the public enterprises have been the source of employment to 33,603 people at executive level appointed by the management in 2008/09. However, the figure dropped to 33,526 in the succeeding fiscal years. Regmi also accepts that public enterprises&nbsp;are overstaffed. Experts opine that the number of staff in sick corporations can be lowered, which may lower their cost of operation and.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">According to Regmi, the government does not have a list of public enterprises that they want to privatise or a policy framework to privatise them in the near future. He suggests that the policy should be made in coordination with line ministries to give such companies the right direction. â€œTrying to save them by the finance ministry alone will not work,â€ said Regmi. â€œA political decision can choose either to close down or keep operating the public enterprises. However, as thousands of people are getting employment even in sick public enterprises, they cannot be abruptly closed.â€ </span><br />
	</span></p>',
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			'created' => '2011-09-17',
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			'description' => 'The government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by.....',
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	(int) 9 => array(
		'Article' => array(
			'id' => '424',
			'article_category_id' => '40',
			'title' => 'International Privatisation Trend (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">M</span><span style="letter-spacing: -0.05pt;">otivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation programmes in the last twenty-five years or so. Decades of poor performance and inefficient operations by SOEs led the governments to embrace privatisation. Thousands of SOEs have been given away to the private sector in Africa, Asia, Latin America, and Eastern and Western Europe. Throughout the world, annual revenues from privatisation soared during the late 1990s, peaking in 1998 at over US $100 billion.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Widespread privatisation in recent decades has generated a reasonable hype concerning the effects of ownership on performance. Most studies find that privatisation has a positive impact on profitability and efficiency of business firms. However, very little is known about the effects of partial privatisation where the government remains the controlling owner. Indiaâ€™s privatisation programme has followed a pattern of partial privatisation through share offerings but at a particularly slow rate. Between 1991 and 1999, the Indian government raised about $9 billion in privatisation revenues, compared to nearly $71 billion raised in Brazil and $21 billion in China over the same period, according to Global Development Finance Report 2001.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Since both ownership and control shift to the private sector at the same time, full privatisation makes it difficult to distinguish between the political and the managerial perspectives. In contrast, under partial privatisation, the shares of the firm are traded on the stock market while the firm remains under government control and subject to political interference. Letâ€™s have a look at the following examples of how some countries and regions responded to privatisation in the last two to three decades. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">India</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The state intervention in SOEs has been undergoing a close scrutiny in many developing countries including India since 1980. The argument was that excessive political interference and lack of managerial interest (autonomy) hampered the performance of SOEs. Economic policy and state-owned sector in the post-independent India can be divided into four phases: (i) 1950-1965, (ii) 1966-1984, (iii) 1984-91 and (iv) post-1991 policy regime. The second sub-period of the second phase i.e. 1973-84 recorded a slow process towards liberalisation, which culminated into an irreversible process of liberalisation of the economy through the third (1984-91) and during final phase (1991 onwards). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Concepts such as liberalisation, privatisation, disinvestment and market-friendly approach replaced the old concepts of socialism and mixed economy. The period of 1966-84 culminated in a total transformation in the economic policy where economy was made predominantly dependent on market forces rather than on the state. The attempt, it seemed, was to depoliticise economic decisions as far as possible. The industrial policy that was initiated in 1985 was the culmination of the process of drifting away, which started during the second phase of the economic policy in India. The 7th Plan (1985-90) proposed larger planned outlays for the private sector as compared to the state-owned sector for the first time in the planning history of India.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India witnessed a major policy reform programme consisting of considerable deregulation of industrial sector as well as liberalisation of foreign investment and technology imports since July 1991. The 8th, 9th and 10th Plan documents suggested many policy initiatives towards restructuring, modernisation, rationalisation of capacity, product-mix changes, privatisation, autonomy, performance accountability and disinvestments policy. The movement of denouncing socialism that started in many parts of the world influenced Indiaâ€™s policy makers as well. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India undertook sweeping economic reforms that included deregulation and privatisation in response to the foreign exchange crisis in 1991. Since the Industrial Policy Resolution of 1991, which outlined the economic reforms, nearly every governmentâ€™s annual budget has declared that the privatisation goal is to reduce government ownership to 26 per cent of equity. In the decade following the launch of the privatisation programme, the government sold minority shares through a variety of methods including auctions and public offerings in domestic markets, and through global depository receipts in international markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The share of state-owned sector in total investment continuously declined since the 1980s is illustrated in the following table. The relative shares of the state-owned and private sectors during 7th, 8th, 9th and 10th plans clearly signal the rising importance of the latter at the cost of the former.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The 9th Plan divided SOEs into three categories (i) profit-making PSEs (Public Sector Enterprises); (ii) PSEs making marginal profits and losses; and (iii) PSEs incurring substantial losses. Accordingly, all PSEs were placed in suitable categories. Disinvestment Commission, started in 1996, primarily to discipline PSEs and make them result oriented was developed into a full-fledged Ministry for Disinvestment, thereby institutionalising the process of reforms and restructuring of PSEs. Once it was established that privatisation of SOEs was no longer a choice but an imperative, the stage was set for privatisation of SOEs. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Privatisation Trend</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The emphasis of Indian privatisation from 1991 to 2000 was on disinvestment through offloading of governmentâ€™s shares to the state-owned or financial institutions. During this period, the government offloaded shares in as many as 39 SOEs. However, since March 2000, the emphasis has increasingly been on strategic sales of identified SOEs. The table below briefly summarises the amount realised and the number of SOEs disinvested or privatised till November 30, 2003.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Modern Foods Industries Limited (MFIL) was the first SOE to be strategically sold followed by Bharat Aluminium Company (BALCO). Fifty one per cent of BALCOâ€™s shares were sold to Sterlite Industries for Rs 5,515 million. Following this sale, the government was quick to proceed with strategic sales in important firms by divesting 51 per cent of the shares in Computer Maintenance Corporation (CMC) to Tata Sons and 74 per cent of the shares in HTL, PPL and Jessop (for Rs 550 million, Rs 1,520 million and Rs 180 million respectively) to Himachal Futuristic Corporations. Nineteen hotels of Indian Tourism Development Corporation (ITDC) and three hotels of Hotel Corporation of India Ltd (HCIL) collectively contributed Rs 6,866 million towards divestiture or disinvestment proceeds. For all these 19 hotels, 100 per cent of the equity was sold. In terms of individual sales, maximum proceeds (Rs 37 billion) were collected by selling 25 per cent of the equity in Videsh Sanchaar Nigam Limited (VSNL), followed by the contributions made by selling 27.5 per cent equity of Maruti Udyog Limited (MUL â€“ Rs 24 billion) and Indian Petrochemicals Corporation Limited (IPCL â€“ Rs 15 billion). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Post-liberalisation era</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The government was forced to revise its economic policies following the exceptionally severe balance of payments and fiscal crisis in 1991 which resulted in disinvestment of government equity in the PSEs. The government steadily paved the way for a level playing field and competition with the private sector and thus resulted in PSEs being envisioned as revenue earning ventures of the government. Thirty individual Central PSEs were divested to select financial institutions namely Life Insurance Corporation (LIC) of India, General Insurance Corporation and Unit Trust of India (UTI) in bundles. Post-1996, sale through the global depository receipt route was also permitted and PSEs capitalised this opportunity to access international financial markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There was a strategic shift in the government policies between FY 2000 and FY 2004 that facilitated â€˜Strategic Saleâ€™ or disinvestment of government stake in PSEs. The process involved transfer of big blocks of shares and management control to the strategic partners that were identified through competitive bidding. Post-FY 2005, disinvestment realisations were primarily through the sale of small equity stakes. The government realised an amount of Rs 534.23 billion as disinvestment proceeds between April 1992 and May 2008.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">In recent times, several government-owned companies have either started disinvestment process or are planning to begin so including the Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Corporation Limited (ONGC). According to Disinvestment Secretary Sumit Bose, Follow on Public Offer (FPO) in SAIL was expected to raise Rs 7-8,000 crores while divestment of five per cent stake in ONGC will fetch the government around Rs 13,000 crores based on present market valuations. The government has proposed a disinvestment target of Rs 95,000 crores from the sale of shares in public sector companies over the next three fiscals, including Rs 40,000 crores in the current fiscal. Last fiscal, the government had raised Rs 22,400 crores through disinvestment in PSU companies by coming out with three Initial Public Offerings (IPOs) and three FPOs. The value of Indian governmentâ€™s stakes in listed SOEs is estimated at about US$ 320 billion and if unlisted companies are included as well, the total value would be approximately US$ 460 billion. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Russia</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The world learnt from the Russian experience that introduction of the â€˜shock therapyâ€™ or rapid mass privatisation can also lead to massive corruption. It underlined the fact that good governance mechanism is vital. Historically, private ownership of production facilities, financial companies and land was absent in the Union of Soviet Socialist Republics (USSR) for over 70 years starting 1917. As per the constitution of the Russian Socialist Federative Soviet Republic of 1918, land was transferred to farming units for management; all production units to â€˜labour collectivesâ€™; and the ownership of forests, natural resources, etc to the state. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Russian government spontaneously introduced a mass privatisation process in 1991 and introduced what was termed as â€˜shock therapyâ€™ â€“ instant price decontrols and rapid opening up of markets. This large scale movement of ownership transfer brought with it massive corruption in the auction process. The mortgage auctions in 1995 were some of the worst cases. Finally in 1997, a new model of privatisation was instituted under which companies were sold rather than distributed. Further, in 1998, the government also introduced processes of asset valuation by international advisors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Current Scenario</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The SOEs continue to play an integral role in the Russian economy even though the role of private sector is ever expanding in Russia. The Russian government believes in the state role through ownership for industrial growth, economic diversification and energy security. The fraction of firms with 100 percent state and mixed (state and private domestic ownership) as per 2007 data is as follows: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; All firms and organisations: <br />
	11 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Employment: 39 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Capital investment: 32 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Fixed assets (state ownership greater than 50 percent): 23 percent. </span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Hong Kong</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong is a relative newcomer to the global club of countries opting for privatisation. It has actually missed some opportunities to learn about and avoid certain problems of privatisation experienced in other countries. There have also been socio-political issues that are unique to Hong Kong. Its experience needs to be seen in the context of the long established worldwide phenomenon of SOEs and the trend of privatisation from early 1980s.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Despite being a British colony, Hong Kong didnâ€™t join the global trend of privatisation during 1980s and 1990s. Some ideas about privatisation were addressed in the government report for Public Sector Reform in 1989 but not followed up for two main reasons. First, there was no strong practical need to privatise public enterprises. Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), had once acknowledged that the erstwhile colony had little external, political or budgetary pressure to reform its public sector. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong recorded public budget surpluses year after year in the post-war period, much envied by other governments. The second reason for â€˜no privatisationâ€™ was political. During the long political transition till 1997, China opposed any colonial government proposal to privatise government assets in fear of a British plot to sell out the interests of the future HKSAR administration. However, the arguments about privatisation in Hong Kong have been reversed after 1997.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Divestment Plans</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Before the return of sovereignty to China in 1997, the Hong Kong government did not divest public assets because of Chinaâ€™s opposition and an absence of budgetary pressure. During the political transition, the colonial government was regarded as fairly competent in dealing with public confidence crises. However, after 1997, these conditions changed quite dramatically. The new conditions in HKSAR prompted the government to formulate divestment plans, but at the same time they raised potential problems for the implementation of the plans. After the political transition, China no longer opposed privatisation proposals of the HKSAR government.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Three Divestment Exercises</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Hong Kong community is generally receptive to the ideas of small government and privatisation compared to many other developed communities. The general acceptance in Hong Kong is partly due to the fact that the government uses public offers as the main strategy of divestment. The popular belief is that citizens will make good profits once they are allocated shares from the governmentâ€™s IPOs. Although the public generally favours public listing, the divestment exercises in Hong Kong were not without controversy. Fundamental conflicts of public interest in privatisation have had to be resolved from time to time. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">MTRC</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Mass Transit Railway Corporation (MTRC) was the first target of divestment in Hong Kong. In late 1999, the government introduced new legislation to replace the MTRC ordinance and to grant a proposed new MTRC company the right to operate the subway system. In October 2000, 24 percent of the MTRC shareholding (US$1.28 billion in value) was divested by way of listing in Hong Kong, London and New York. The offer was 18 times over-subscribed and broke the local record for an initial offering. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Tunnels and Bridge</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After the Legislative Council approved the relevant grant of power, the government divested the future revenues from five toll tunnels and a toll bridge in August 2004 under a securitisation scheme involving the listing of government notes worth US$ 770 million. The offer to individual investors was two times over-subscribed, and the portion earmarked for institutional investors was heavily subscribed. The assets themselves continue to be government-owned through a new government company, Hong Kong Link 2004 Limited. The day-to-day operation of the tunnels and bridge as managed by franchised private firms remains unchanged.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Link-REIT</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">The Housing Authority (HA â€” a statutory corporation) announced in July 2003 that it planned to divest most of its retail and car-parking facilities in public housing estates. The plan was that the government would first set up a new asset-owning and management company, Link Limited, and then divest its ownership entitlement to the companyâ€™s future revenue streams in full by way of the listing of a real estate investment trust fund, Link-REIT. The trust fund, REIT, was chosen as a vehicle for divestment partly because it would restrict the scope of Link Limitedâ€™s business initiatives and partly because the government wanted to promote REIT as a new type of financial product. The HA planned to transfer the retail and car-parking assets to Link Limited after the scheduled listing had been completed. In due time, Link Limited took over the day-to-day management of the HAâ€™s retail and car-parking facilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Latin America</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Latin American countries have been very active in privatisation. Even against the backdrop of massive economic transformations in transition economies, the privatisation record of Latin America seems remarkable. To facilitate their shift to a market economy, most Latin American countries launched mass privatisation programmes that resulted in dramatic reductions of state ownership. Latin America accounted for 55 percent of total privatisation revenues in the developing world in the 1990s followed by transition economies in Eastern Europe and Central Asia at 21 percent. The decline in the economic activity of SOEs has been more substantial in Latin America than in Asia and Africa, bringing levels close to those of industrialised countries. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Dramatic differences in the extent of privatisation are also evident within regions. In Latin America, for example, countries with large state owned sectors, such as Ecuador, Nicaragua, and Uruguay, barely privatised at all in the 1990s, while others such as Argentina, Bolivia, Guyana, Panama, and Peru raised revenues from comprehensive privatisation programmes that amount to over 10 percent of GDP. The difference in the extent of privatisation across countries and the large amount of assets in the hands of the state heightened the importance of understanding the privatisation record and of developing lessons for future privatisation programmes. However, Latin America has virtually halted its privatisation process in recent years after being the most active region in the 1990s. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><b><i>References</i></b></span></div>
<div style="margin-top: 5.65pt; text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>1&nbsp;&nbsp; Madhu Bala (2006) â€˜Economic Policy and State Owned Enterprises: Evolution towards Privatisation in Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>2&nbsp;&nbsp; â€œKPMG Internationalâ€ (2010) â€˜Resurgent PSUs Vibrant Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>3&nbsp;&nbsp; Nandini Gupta (2005) â€˜Partial Privatization and Firm Performanceâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>4&nbsp;&nbsp; Rikkie L K Yeung (2005) â€˜Divestment in Hong Kong: Critical Issues and Lessonsâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>5&nbsp;&nbsp; Alberto Chong &amp; Florencio LÃ³pez de Silanes (2004) â€˜Privatization in Latin America: What Does the Evidence Say?â€™</i></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>',
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			'description' => 'Motivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation.....',
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	(int) 10 => array(
		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nationâ€™s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, â€œWe canâ€™t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.â€&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. â€œThe stateâ€™s attitude is the major hindrance towards attracting private sector investment in renewable energy,â€ alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who donâ€™t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, â€œI personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.â€</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepalâ€™s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump â€˜right wasteâ€™ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. â€œIf we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,â€ Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nationâ€™s industries avert collapse. On the other hand, NEA wonâ€™t be affected adversely because the industries will be there to make up for its â€˜apparent lossâ€™.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the countryâ€™s topography provide ideal conditions for the development of some of the worldâ€™s largest hydroelectric projects. â€œIf we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,â€ Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepalâ€™s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors donâ€™t have an alternative. â€œThe FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,â€ he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, â€œSaudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.â€ He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. â€œMy observation is that energy crisis will continue in the next five years,â€ says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. â€œWe must determine our total energy-mix scenario over the next five, 10 or 20 years now,â€ he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. â€œNepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, â€œI see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.â€ </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepalâ€™s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. â€œThe total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,â€ claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepalâ€™s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. â€œWe are certainly not late in identifying the sectorâ€™s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, â€œThis country will collapse if we donâ€™t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepalâ€™s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'created' => '2011-09-05',
			'modified' => '2012-08-23',
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			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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	(int) 12 => array(
		'Article' => array(
			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producersâ€™ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious â€˜Manager of The Year 2006â€™ award from Management Association Of Nepal (MAN) and â€˜Excellence Award 2010 in Energy (Hydropower)â€™&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sectorâ€™s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, itâ€™s about time we gave topmost priority to hydropower development in Nepalâ€™s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earthâ€™s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepalâ€™s cities and towns are situated at an elevation. Hence, they donâ€™t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, itâ€™s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we donâ€™t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we canâ€™t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which canâ€™t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We wonâ€™t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesnâ€™t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you donâ€™t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past â€“ the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening â€˜another bankâ€™? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2012-08-23',
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			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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	(int) 13 => array(
		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because itâ€™s the rainy season. But once monsoon is over, it will be back to square one â€” we will experience 14-15 hours of power outage again. As for renewable energy, I donâ€™t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA wonâ€™t have to lose because the industries are there to make up for NEAâ€™s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but canâ€™t agree with each other or we donâ€™t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in todayâ€™s context, how can we export when we donâ€™t have enough for ourselves? Take Bhutanâ€™s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the countryâ€™s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the â€˜right wasteâ€™ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Whatâ€™s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEAâ€™s low rates , which are highly subsidised. Therefore, itâ€™s no surprise that the private sector does not want to invest in renewable energy. They wonâ€™t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'created' => '2011-09-05',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 14 => array(
		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Current Scenario</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
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	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
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	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
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	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Building Parameters</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for the Masses</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for Foreigners</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Looking Forward</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
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			'title' => 'Business Of B-schools (September 2011)',
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			'content' => '<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">By Gaurav Aryal</span></strong></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" height="252" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/sep-cover.jpg" style="width: 251px; height: 252px;" vspace="10" width="251" /></span><span style="font-size: 14px;">During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly trained human resource in the field, the management education also thrived as the business in itself. The growing number of banks, financial institutions, corporate houses and increased awareness about the need for modern management expertise to run any commercial&nbsp;venture fueled the growth in management education. Private sector investment in setting up the state-of-the-art institutions and immensly improved quality of education indeed have had multiplier effect in adding attraction to both-investors and students. More than&nbsp;one and half dozen colleges affiliated to three universities - Pokhara University, Purbanchal University and Kathmandu University (KU) - are running either Master in Business Management (MBA) or Executive MBA (EMBA) or both. Though the Tribhuvan University (TU) has not introduced any of these courses, it is running Master in Business Studies (MBS) for decades now. TU plans to introduce an MBA programme in the near future. All these universities also run Bachelor in Business Management (BBA), a four year course while TU has Bachelors in Business Studies (three year course) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A few years back studying medicine was supposed to be the most prestigious academic pursuit for a whole lot of students and guardians. Today, the market demand, expansion of career prospects in management sector, growing importance of human resources in companies and distinct teaching-learning methodology are luring more students to management education, perhaps, more than in any other discipline. Nepali universities are also working hard to produce quality managers to compete in the market where top-notch managers are still mostly from foreign universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The History</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management education began in Nepal in the form of commerce education in 1954 with the establishment of commerce department in government-owned Tri-Chandra College. The college had introduced Intermediate of Commerce (ICom) and Bachelor of Commerce (BCom) programs with 27 and four students respectively. The programme was affiliated to an Indian university till the establishement of Tribhuvan University (TU) in 1959. The following year, in 1960, TU began offering post-graduate programme in commerce called Master in Commerce (MCom) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Bijay KC, the Dean and Professor at South Asian Institute of Management (SAIM), says introduction of National Educational System Plan in 1971 proved a milestone in the evolution of management education in the country. TU set up Institute of Business Administration, Commerce and Public Administration. This institute was renamed as Institute of Management in 1976. It is now called Faculty of Management (FOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal National College (later renamed Shankar Dev Campus), Public Commerce College (Kathmandu), Nepal Commerce College (Lalitpur), Thakur Ram College (Birgunj), Mahendra Morang College (Biratnagar) ruled the roost for a long period in the management education of Nepal. Numerous prominent business persons&nbsp;and management gurus were educated in these colleges. These colleges were later brought under the direct control of TU (as TUâ€™s constituent campuses) following the introduction of National Education System Plan of 1971.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That system of complete state control on education was withdrawn in 1979 and TU started granting affiliation to colleges set up by the private sector. However, it was only after 1991 (i.e. after the advent of multi-party democracy) that there was real growth of colleges from the private sector in management as well as in other types of higher education. That was the year when Kathmandu University (KU) was set up. KU set up Management School (called KU School of Management or KUSOM) in August 1993.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That was followed by establishment of Purbanchal University in 1995 and Pokhara University in 1996. Thus, there are four universities in Nepal now providing management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These universities are competing to introduce new tools and techniques in management education. For example, MBA with modern teaching-learning methodology and accordingly courses designed at these universities have helped maintain almost global standards in upper-level management education. A new brand of MBA â€“ EMBA has been introduced recently targeting practising managers. This management programme has been introduced in several private colleges affiliated to Pokhara University, Purbanchal University as well as the central college of KU called KU School of Management (KUSOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As of 2009, TUâ€™s FOM had 28 constituent colleges and 506 affiliated colleges. The latest entry (August 2011) in the website of Pokhara University shows that it has over ten colleges affiliated to it for different types of management education in the Bachelorâ€™s or Masterâ€™s level in addition to its central campus of PU School of Business. Similarly, KU has three colleges affiliated to it for such courses in addition to its central campus KUSOM. Purbanchal University has over 35 constituent or affiliated colleges for such programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These colleges offer such courses as Master of Travel and Tourism Management (MTTM) at the Masterâ€™s level in addition to MBA, MBS and EMBA. At the Bachelorâ€™s level, there are other specialised programmes as well in addition to BBS and BBA. The examples are Bachelor in Hotel Management (BHM), Bachelor of Information Management (BIM), Bachelor of Travel and Tourism Management (BTTM), Bachelor of Business Information System (BBIS) and Bachelor of Commerce Studies (BCS).&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, despite such growth in management education in Nepal, a large number of Nepali students are still going abroad for management education. While that shows the growing demand for the higher education in management science, it has lured a number of foreign institutions to set up their campuses in Nepal or forge partnerships with Nepali colleges or universities.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Growth</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Saroj Dhakal, Management Faculty at the recently established CG-CEDEMAS Institute of Management (CGCIM), feels MBA has now become a most sought after brand amongst the ones aspiring to make career in financial or managerial fields. This institute is a joint venture between Nepalâ€™s one of the porominent business houses Chaudhary Group and Englandâ€™s Centre for Development Management Studies (CEDEMAS).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Colleges offering MBA, EMBA or both degrees</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 424px; height: 987px;">
	<tbody>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">S. No.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Name of College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Affiliation</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">2.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Ace Institute of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Apex College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">National Open College (NOC)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">5.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Uniglobe College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University-Faculty of Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">7.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">8.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu Don Bosco College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">9.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Novel Academy</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">10.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidency College Of Management Sciences</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">11.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Zenith International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kantipur Hotel Management &amp; Interior Design College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">13.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">DAV College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">14.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Topper Management College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">15.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">White House Graduate School of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">16.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Campion Kathmandu College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">17.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Birganj Public College, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Maharaja Agrasen College of Management, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">19.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Management Campus, Biratnagar</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">20.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Bebasthapan (Sang) College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">21.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">King's College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">22.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidential Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nova International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">24.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Lord Buddha Education Foundation (LBEF)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Sikkim Manipal University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">25.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International Center for Academic College of Distance Education &amp; Online Studies(ICA)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">26.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Information Technology</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">27.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Institute of Banking &amp; Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Bharathiar University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">28.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">KFA Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Vinayaka Missions University (India)</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Apart from the banking and financial system, the demand for professional managers is equally strong in other sectors like tourism and hospitality, energy, agriculture, public sector and others.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As the reasons for growing attraction and development of management education Dr Bijay KC lists development in infrastructure over one-and-a-half decades, change in the trade and occupational patterns in Nepal, growth in media, information technology and development of financial sector, among others. MBA and EMBA graduates are more in demand in the private sector than in the government. KC feels that globalisation and liberalisation have spurted the demand for quality managers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Prof Dr Geeta Pradhan, Dean at Faculty of Management Studies at Pokhara University, says â€œThe growth of banks and corporate houses has definitely added attraction to management studies in the country. Similarly, MBA teaching methods has several in-built practical approaches with internships, project works and case studies.â€ She thinks such approach of teaching-learning methodology produces graduates that are competitive in the work environment and turn out to be capable managers. She added, â€œManagers are required in every field â€“ hospitals to corporate houses. This has created the demand for management graduates.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, Prof Dr Dev Raj Adhikari, Head, Central Department of Management, Tribhuvan University, says that the current growth is not of the actual business schools but in the business studies. He gives credit for this to leading four universities for the growth. He says, the number of students and resource persons is growing along with the demand for competitive human resources in the market that is also growing. Adhikari says, â€œManagement education has improved in terms of both quality and quantity.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<strong><span style="font-size: 14px;">Student Psyche</span></strong></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">MBA students are often tagged as job creators in foreign universities for their attitude summarised as: â€œWe donâ€™t seek job. We create jobs.â€ However, that attitude is not so common among Nepali students. Pradhan says, â€œStudents are not sufficiently eager and positive towards setting up their own business. When I encourage my students about coming up with such ideas, I donâ€™t see enthusiasm in them. I think they are quite lazy. Working in a bank is considered prestigious while setting up a farm by an educated person is not given respect in our society.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says, â€œMore than 95 per cent students are job seekers.â€ He says it is engraved in our culture to search for jobs rather than create one by taking risk of being an entrepreneur. However, he shares some examples of his students who are willing to take up an entrepreneurâ€™s career. â€œSome MBA graduates have established their own cooperatives and finance companies, which is quite positive.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Subas KC, Dean of KUSOM, says that most of the students in his colleges are from well-off families and they prefer easy desk jobs in banks rather than hard work, of setting up companies and being an entrepreneur.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Social psyche, parentâ€™s expectation, socialisation and schooling are blamed for this mentality of job seekers rather than job creators. In fact, MBA courses are not designed to produce graduates who seek jobs but it is designed to produce managers and entrepreneurs. Risk taking attitude is said to be missing among students and aspiring entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dhakal however points out that the level of risks to be shouldered in our society is higher than in other comparable countries including in the immediate neighbourhood. Lack of security, extortions and unfavourable investment environment are driving away graduates from setting up their own business, he argues. Julie Peters, Project Director CGCIM, says her college provides incentive to students with best ideas to set up their own business at the end of their studies to promote entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Curriculum</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management course covers a wide range of disciplines with focus on marketing, human resource management, organisational behaviour, and strategic management among others. Apart from these, mathematics, psychology, sociology, philosophy and economics are taught in the classrooms to the graduate students. These courses expect students to understand and manage the literally all operational aspects of the organisation. Management studies enhance the managerial skills by sharing of ideas, healthy discussions and project works, say experts.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari, who is also the President of Nepalese Academy of Management, said MBA course is designed to understand the changing perspectives in the business. MBA graduates are expected to understand new definitions and programmes, think strategically, make decisions and have a practical approach to any problem. The aspects make them expert managers and business leaders.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Number of Management Colleges</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 401px; height: 246px;">
	<tbody>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Courses</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Tribhuvan University</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">533</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">35</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">45 in operation out of 90</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">EMBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari shared, â€œGeneral Motors of USA has devised three â€˜Tsâ€™ concept for its human resources - technology, talent and transformation. We need MBA graduates for such transformations.â€ He adds that MBA course in Nepal is devised to produce capable leaders who can understand and cope up with new advancements and plan, organise and execute accordingly. â€œMBA is not introduced only for the sake of MBA. It was introduced to support the emerging economy by developing such human resources that can meet the requirements either through a job or entrepreneurship,â€ he said talking about TUâ€™s management programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Scholars accept that the masterâ€™s level curricula on management of Nepali universities are that of the international standards. However, they often question about the way it is delivered to students. Dr Bijay KC said, â€œThe system we follow is more or less the same as in foreign universities. Many universities have accepted the credits our students have achieved primarily due to the courses we teach. Semester system, alphabetical grading evaluation, standard text books used here are similar to western system. In some cases, students may have to take some test/examination which, I think, is normal practice everywhere for any&nbsp; foreign student.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors think that the main gap is in the teaching-learning methods. KC explains, universities have the same curricula that cover human resource, finance, marketing, organisational behavior, economics, quantitative techniques, strategy, environment and management information system with more or less similar contents.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari and KC share the similar view that most important is the treatment of the course and its delivery in the classroom, the quality of faculty, the pedagogy used and practical exposure that the students gain during the course.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Teaching-Learning Methodology</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The classes of TU MBS are mostly based on the lecture method. However, the colleges under other universities have adopted more practical and participatory methodology to teach in MBA level. These days, traditional teaching-learning method based on lecture is deemed obsolete for any discipline. For management studies, active participation of students in group work and more practical approach, along with observatory methods are considered appropriate. In an MBA class, teacher and students challenge statements, attack and defend ideas. Inclusion of other approaches plays an important role in the learning process.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says the central department of management is forced to adopt the traditional method of lecture as they have a huge number of students â€“ around 200 in a single class. He says this simply makes impossible to adopt the other style such as group discussions, presentations, case studies, etc.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Peters of CGCIM opines, â€œPurely academic approach will not work. The MBA course must take an approach of looking at company case study and the actual issues in that company and how they address those issues. Theories may come later. Theory is something managers already know from their experience but they donâ€™t realise that they know.â€ Dhakal from the same institute argues that for a class to be participatory and active, students too must have some kind of exposure and experience. â€œBut Nepali students are straight out of the undergraduate colleges, so the teaching methodology is confined to theories alone,â€ he said. Internationally, students can enrol into MBA course only after practical experience of a couple of years as a manager.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">An appropriately designed MBA curriculum demands for more participation, personality development and attitude development. So, the classroom must be synchronised accordingly. After graduation, students enter the job market. So, the colleges must be producing graduates who can face the real working environment. Adhikari believes, â€œTeaching-learning methodology plays a pivotal role in bridging the gap between classroom and workplace. Such environment in the class must be ensured so that they can adapt to the work environment the very next day.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the business schools have tried to revolutionise the classrooms. They have introduced the concept of dual faculty in a class. Along with an academician, a professional contributor takes a class. Academician deals with the theory while the professional contributor shares his supportive working and real-life experiences. Such professional may be a Chief Executive Officer or Human Resource Manager of a bank or a corporate house.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Most graduate schools of management implement project works, participatory techniques, encourage team work, case studies and field visits and some invite visiting faculties from foreign universities. Similarly, games, participatory techniques and decision making opportunities are frequently practised in graduate schools.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">International Recognition</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The validity of degrees from Nepali universities is often questioned in foreign universities, mostly in the US and Europe. The courses adopted here, teaching method, curriculum, assessment criteria are mostly blamed for the failure of giving equal recognition to our degrees. Nepali masterâ€™s degree holders from any university mandatorily have to take up some kind of foundation course or additional credit hours in those foreign universities for them to get recognised as MBAs for employment and further degrees. Moreover, the competency of our colleges and students with the international counterparts can also be often questionable.&nbsp;Experts believe our universities and management institutes cannot be compared to the quality being offered by some universities and institutes in India and the US. However, we have been successful to devise the curriculum that is at par with the international quality for MBA as well as BBA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case of MBA, a student requires to meet certain requirements in USA to get enrolled. Unlike here, a student must have two years of work experience and must appear in the GMAT test before admission. Adhikari points these as some of the reasons why our degrees are not directly recognised internationally. However he claimed, â€œAlthough there is no direct recognition, our education is not derecognised anywhere in the world. After meeting some of their criteria like additional courses and credit hours, our degrees are largely recognised.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">One of the reasons Nepali young generation prefers foreign or international degrees to pursue MBA is the issue of recognition of our degrees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Foreign Affiliation</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A number of Nepali institutes and colleges have now presented an option to acquire foreign degrees while being within the country. However, most of these colleges are centred in the capital city Kathmandu only. It is not only the Nepali colleges that are willing to bring in foreign affiliations, but also foreign universities are interested to have Nepali affiliates. The reason is the attraction of Nepali students for international degrees and thus the potential market for those colleges.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">CGCIM is the latest institute to offer post-graduate diploma affiliated to Centre for Development Management Studies (CEDEMAS), UK. Dhakal of CGCIM says that the institute was established with the idea to provide teaching in Nepal by foreigner professors. He said, â€œThis is the concept of providing a world-class degree from Nepal. Instead of students going abroad, professors come here to teach and the cost is relatively very small for the students.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Similarly, colleges like KFA, Institute of Banking &amp; Management Studies, Lord Buddha Education Foundation and some other are affiliated with Indian universities. Kingâ€™s College, Presidential Business School, Nova International College are affiliated to International American University, USA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the quality of the affiliated university is also questioned by professionals in management and business studies. KC of KUSOM said, â€œUniversities that Nepali colleges are affiliated to are not much heard-of. Such co-operations will not contribute much to the development of management studies. It will be really praiseworthy if colleges can bring in affiliations from top universities like Harvard, Oxford or any other well-known universities or even Indian Institute of Management.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although the trend of getting affiliation with foreign university is increasing, the government universities are not feeling any threat. Adhikari of TU said, â€œNepali universities are in the forefront on the basis of competition and curriculum. We have much better course design that is customised with Nepali culture, system, economy, situation, need and expectation of the market.â€ Most of the foreign affiliations are based on the distance learning mode.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Sponsorship</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Funding students for business and management studies in Nepali college is not much practised by corporate houses. However, some corporate houses have financed a few students in some leading colleges. Apart from that there is also a trend to send the employees of the corporates to Indian colleges and institutes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors do not think that corporate houses are sending students abroad due to the crisis of trust on Nepali colleges. They believe it must be because of some extraordinary qualities that they cannot find in Nepali colleges but see in foreign ones.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However Adhikari says, â€œCorporate houses are not investing in HR for academic programmes. I have not found a single student sponsored by corporate houses.â€ Even in EMBA, which is meant for working managers, students are studying under self-financing. According to Adhikari, in other countries, EMBA students are compulsorily sponsored by employing organisations.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">EMBA</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is the course designed for working professionals who want to improve their leadership and management skills. It is relatively a new course introduced in Nepal. This programme is said to help managers learn, grow, and change in their career while working. It is the only post-experience management degree as the MBA here does not need any prior work experience.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is a two years course based on semester or trimester system. The course aims to enrich both theoretical and practical knowledge. The course requires being changed and updated to keep up with pace of the evolution in the market. Students of EMBA believe it helps to tackle the challenges they face in managerial profession that keep on arising at work. The course content of EMBA is quite similar to that of MBA with more priority on the practical aspects. EMBA colleges adopt case study, participative method, group discussions, presentations, field visits, project works as their common methods of teaching-learning, supported by lectures.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Three universities â€“ KU, Purbanchal and Pokhara University â€“ are offering EMBA courses. KU has it in its own campus â€“ KUSOM while Pokhara is offering it in its central campus as well as affiliated colleges and PU is providing it through its affiliates. Assessment criteria applied in these universities is a mixed bag of practical and theoretical written exams. Moreover, most colleges have implemented the overall performance evaluation for the grading system that is usually alphabetical.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Career Prospects and Recruitments</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management and business graduates opt for career in the financial sector which is at present the major job market in Nepalâ€™s formal sector. Students do not much prioritise other sectors than the financial institutions as their career area. Only a few students take the path of self-employment and job-creation through entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Joint venture companies are also becoming the target areas of MBA graduates for jobs. Meanwhile it is expected that the service sector, which is growing fast, will certainly attract management graduates. KUSOM has its own employment cell to coordinate job placements. Ace Institute of Management too has similar kind of on-campus and off-campus placement mechanism. Dr Subas KC said that students used to be hired by well-known corporate houses in bulk when KUSOM was the only college to offer MBA. However, bulk hiring is not much practised now, companies still reach the college searching for suitable MBAs. Apart from students searching for jobs, companies too come searching for their probable employees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although it is not so difficult to secure a job after MBA, the facilities, working environment and remuneration are quite low compared to their qualification. Dr Geeta Pradhan accepts that management graduates are not getting the pay in Nepal that they deserve.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In our market, performance-based pay is less in practice. The flat industrial pay scale is common. Although pay is determined by several factors like economy, industrialisation, market, countryâ€™s status, personâ€™s productivity and efficiency, it is believed that most appropriate pay system is performance-based, that is what exactly is missing here in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Future</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal being a growing economy, it is certain that the need for professional managers will grow in almost every sector. With the creation of job and growth of market, management graduates will be demanded by both private and public sectors. There are sectors like hydropower might just gradually open up as attractive jobs for new graduates The job market that is confined to the banking sector is certain to expand with more joint ventures coming, growth of service sector, more industries and growth of market.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That will lead to more demand for management graduates and management schools that produce top-notch managers. The collegesâ€™ changing trend shows that they will be able to manage to cater to the demands of the market and time. For that, the teaching-learning method has to change for the better. Similarly, the research practice that is missing among the professors must be developed. Rather than studying just what is happening in the outside world, management schools must be capable to address the evolving Nepali market realities. Without researches by the universities and professors that is almost impossible to do.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Moreover, MBA colleges are blamed for utter commercialisation. To revolutionise the management studies, they require to rise above the worries of profit and loss and dedicate themselves to bring in professional management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Experts opine that the concept of business school in true sense of the term is yet to come to Nepal. Business schools are more autonomous with definite vision, mission, and goals and operate accordingly. Adhikari says that such schools have distinct identity and existence. â€œTU is planning to develop the concept of business school. The only question is the extent of autonomy.â€ He thinks that MBA colleges are coming just for the sake of money without caring to meet their social responsibilities. The courses and academic studies must address the current needs of the country. â€œBusiness schools just with the aim to get students for the sake of business will not sustain in the future. They must take ahead business education with national and international perspectives in mind and by charting out clear vision, mission and leadership,â€&nbsp; he suggests.</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;"><br />
	</span></h3>
<h3 style="color: blue;">
	<span style="font-size: 14px;">* Alumni Speak *</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sujan Raja Shrestha received an MBA degree from Kathmandu University School of Management (KUSOM) in 2000. Currently a Management Consultant with Smart Food &amp; Snacks Pvt Ltd, he also manages his own business ventures â€“ Sovereign Education Network and Barahi Eco Farming Company.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Having started his professional career as an employee in various companies, he has come full circle in his decade-long professional journey. He says, â€œI have learned much and had the opportunity to implement management skills over the years.â€ Shrestha takes pride in having reached the companies he worked with (Himalayan Snacks, Smart Food etc), to new heights. He emphasises that a corporate entityâ€™s success is the result of team work to a large extent. And almost in the same breath, he doesnâ€™t forget to remind, â€œTo manage and mobilise a team well enough to obtain maximum output, we require excellent management skills.â€ He adds that these skills can be learnt and it certainly helps having a management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Shrestha believes that one must not pursue management education, particularly an MBA degree, only to find better employment or to get a promotion. â€œThe knowledge a student gathers while studying management builds his/her analytical skills better than ever before and pays dividends over a long period of time,â€ he explains. He opines that a competent management education helps students make more informed decisions with a greater probability of success.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A firm believer of blending theory and practice in management education, he expresses confidence that having successfully completed their MBA programme, the students can choose any business or profession they have their heart for and want to excel at. Shrestha hopes that most management graduates will ultimately turn employers rather than remaining employees for life. â€œI look forward to the current crop of MBAs to turn entrepreneur after getting a few years experience so that they can create jobs for others and become more productive and constructive,â€ he concludes on an &nbsp;optimistic note.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Subodh Sharma Sigdel completed his MBA (Finance) from Nepal Commerce Campus, Tribhuvan University in 2000. He also attained an additional degree with an MSc in International Banking and Finance (IBF) from University of Greenwich, London in 2010. He is currently the Chief Executive Officer of CDS and Clearing Limited.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sigdel was in the early phase of his banking career when he completed his MBA in 2000. The qualification helped him become a good leader and taught him skills related to conflict management, team motivation, plans and programmes preparation, effective communication and overall managerial acumen. After working in the banking and financial sector for more than nine years, he realised the need to get another degree that specialised in his working arena. Hence, he opted to obtain a degree in International Banking and Finance from the University of Greenwich in London. â€œThis degree has given me an excellent opportunity towards shaping my career,â€ he observes. Meanwhile, Sigdel also ran a trading institute where he trained commodity and stock investors about investing money in the market. He has been recently appointed the CEO of the first ever CDS company of Nepal, CDS and Clearing Limited which is an integral part of the capital market. â€œStudying subjects like International Capital Market and Financial Trading Techniques immensely helped me in bagging this coveted position. Besides, the IBF degree helped me with my policy making role and supervisory activities,â€ he reiterates. He credits his MBA (Finance) degree for building his career while being grateful to the MSc (IBF) qualification for shaping his career in a better direction.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€œManagement education has become extremely important for students aspiring for a career in management,â€ Sigdel asserts. He suggests that students should pursue a management degree because the market holds enormous opportunities for trained professionals. He adds that management career, today, is not limited to the banking and financial sector only. â€œCareer choices for management graduates are widening these days with new companies like Central Depository System, Commodity Exchanges, Credit Rating Agency, Mutual Funds and the concept of working as Commodity and Stock Trading Members have emerged in our economy,â€ he points out. Since these companies demand huge workforce, Sigdel advises students to attain relevant management education and fashion successful managerial careers for themselves.</span></div>',
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			'created' => '2011-10-11',
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			'description' => 'During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly.......',
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		'Article' => array(
			'id' => '472',
			'article_category_id' => '40',
			'title' => ''We Are Compelled ToStudy Foreign Cases' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Prof Dr Geeta Pradhan</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dean, Faculty of Management Studies</span><span style="font-size: 14px;"><img align="right" alt="" border="1" height="215" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/geeta pradhan(1).jpg" style="width: 166px; height: 215px;" vspace="10" width="166" /></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Pokhara University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR (Human Resource) Management and MBA in Management Information System. These courses produce expertise that is required for any corporate house or enterprise. Other course that I want to introduce is a Masters programme in Public Policy. I think the current education does not well equip those going for government and civil services.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There is a remarkable growth in management colleges and students in Nepal. When I joined Pokhara University, there were very few students. In 2008, there was just one student in MBA. In Pokhara, there was a belief that MBA will not succeed. With the help of some officials from the university, I visited banks, institutes, chambers of commerce for searching students. They all assured to cooperate. Then, we received applications from 80 candidates while we had only 50 seats. At that time in BBA, the dropout rate was high. Admission was announced thrice for one BBA session. The growth of banking sector has also created demand for capable managers. Management studies with practical approach of teaching like internships, project works have helped graduates to contribute competitively in the organisations. Hence, there is growth in attraction to these courses and management schools.This course produces capable human resource and managers who are required in every field â€“ hospitals to corporate houses. Emerging financial institutions and corporate houses have also increased the demand for management graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sending students to study in foreign colleges. Does that mean they donâ€™t trust our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is not that our education is bad but we have not achieved their level, which we can achieve easily. I blame our attitude to ignore rules, regulations and the system. Despite having excellent course design, students are not able to perform well. If they can work accordingly, they will be capable, honest and manage their time efficiently.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBA graduates seem to be targeting a job in banks. Are the MBA courses designed for that only? Do you see any&nbsp; misconception in students?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That is a misconception. The MBA is for producing capable managers and entrepreneurs. Our society does not respect all kinds of works. Table work is always considered the best job but running a farm is taken in a different way. Bank jobs have become a symbol of prestige now. Very few students think of setting up their own businesses. I encourage students to find out ways to use hot natural springs around Pokhara and prepare proposals but I think students do not have positive attitude for such creative works.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Case study is what foreign universities opt for teaching. It is said that we donâ€™t have much cases within our country to study. Are we forced to study only the foreign cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case studies, frankly speaking, the trend of case writing is missing in Nepal. In my university too, we employ the case study method, which is a foreign concept. Good cases from Nepal are not being written. There are some professors who write them but still good cases are missing. We often encourage writing them but professors for some reasons are not willing to write them. I think they feel lazy. I feel we donâ€™t have a tendency to be competent and do something different. So, we are bound to study foreign cases though we have enough cases and examples in our own surroundings.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is our curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The curriculum suits the typical business environment of Nepal. However, the dialogue between academia and business is missing. Business is heading in one direction while business schools are in another.&nbsp;I often tell business houses to exchange resources but I donâ€™t know why it is not been possible to find a working chord.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Curriculum and teaching-learning methodology of Nepali colleges and universities are&nbsp;said to be traditional. What is your university doing to update your curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is true that we have traditional method of teaching and learning. For bringing some changes, students must have exposure and the teachers too need to have some inputs. They teach only what they have studied. That makes it quite difficult. When visiting faculties are selected I prefer MBA graduates from America. They have exposure to different methodologies and it is definitely different than teachers who got education here. We are revising the curriculum even of BBA and that has been approved by the subject committee. We have also included the course of business ethics. We continuously go on revising the curriculum.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the course bridge the gap between real life work place and the lessons taught in business schools?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If there were more teachers who studied in foreign universities or from abroad, bridging the gap between classroom and the real world would have been much easier. There are many constraints. When we ask students to go for some field visits they ask the university to bear the cost. That is a hindrance. To some extent, students also need to bear these expenses when it is useful for their studies and career. I think many do not understand the concept of university. In university, students are required to manage some expenses for themselves. What they do and what they learn in classroom is reflected in the real working environment.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Nepali universities are said to have weak management and the basics like exams and results are not conducted on time. What is the main problem?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The management is not a total failure but it is also true that it is quite weak. The management is unable to enforce the rule upon students and their unrealistic demands are not suppressed. In some cases, colleges themselves are involved in encouraging students for demonstrations to change the date of scheduled exams. They reason, the course is incomplete. I think infiltration of political elements in colleges is guiding it. But we have tried to bring the session back on track by cancelling vacations. The situation is gradually improving because we are also taking firm decisions. I think one of the reasons behind such practice is, most of the time students are enrolled without proper selection due to various reasons.</span></div>',
			'published' => true,
			'created' => '2011-10-11',
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			'keywords' => '',
			'description' => 'New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR....',
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	(int) 2 => array(
		'Article' => array(
			'id' => '471',
			'article_category_id' => '40',
			'title' => ''MBA Has Become Competitive Now' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dev raj adhikari.jpg" style="width: 190px; height: 245px;" vspace="10" /></span><span style="font-size: 14px;"><b>Prof Dr Dev Raj Adhikari</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Head, Central Department of Management</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Tribhuvan University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU) - the oldest one in the country - are contributing to the growth of management studies. Along with the growth in number of students and faculty, there is also the growth in demand for the products in the market. Market is also growing. Currently, we can see quantitative growth but there is impressive qualitative growth too. Recently, a report of Ministry of Education has revealed that the number of students going for foreign education has dropped. Management education has grown both qualitatively and quantitatively.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are talking about globalisation today. That automatically reflects in our curriculum. Our curriculum cannot always be taught in the same old traditional methods because our students have to compete in the international market. The demand is growing for&nbsp;change and advancement in the management studiesâ€™ curriculum. The teaching-learning model also needs to be reformed. Some schools have adopted really good methodology but in our MBS, we have not been able to achieve the global standards due to a large number of students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How have the management schools tried to change the traditional practices?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the institutes are practising methods like project works, case studies and participatory techniques in classrooms. They are encouraging team work and group work. Students are often taken for industrial tours and field visits. Professionals and entrepreneurs are giving lectures while visiting faculties are being sourced from foreign universities. These are now being practised in Nepali colleges. They are trying their best because they are getting money and need to satisfy the parents and students. I have seen bank CEOs addressing the classes. Some institutes even have the system of dual faculties in which one is academician while the other may be a professional. Academician teaches theory while the professional shares his real work-life experiences. He may be the HR director of a certain bank or even a CEO. Now, MBA has become competitive. Market will judge in the future if one can or cannot deliver. Teaching-learning method is not that much traditional as in the past. In MBS, traditional method is also being used. The most popular method in the world is the lecture method. When the classroom is small and focus is on a particular group, we can go for case studies, game theories, project works, participatory techniques, create decision making opportunities. But in a large class, the same is not possible. It is being traditional because we donâ€™t have environment to use new tools and pedagogy. Some classes are traditionally run but the cases have changed a lot compared to the past. In the coming ten years, there will be a lot of changes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our competency compared to the level of regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is very difficult to say what exactly is our competency compared to other universities, especially those in India. Currently, in the growth of Indian management education, quality is especially seen in state universities and management institutes like IIM, Ahmedabad. We have not reached that level of quality in education. Here, Pokhara, Kathmandu and Purbanchal universities are leading in MBA. They have changed with time and have created the course well with a lot of planning but so far the implementation is missing. We are lagging behind in regional and international perspectives. But the TU MBS can be easily compared to Indian quality. Curriculum is good and our MBS course can be compared with good universities in India. So, what we can safely say in MBA we still have to do a lot of things because growth in business here does not have the same pace as in India. Our internship level can by no means be compared with theirs. We have also not been able to provide facilities and educational environment that Indian MBA students get. In such a case, we canâ€™t compare with them. Nevertheless, we are trying our best; our universities are trying for something similar.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Are our colleges, courses and degrees internationally recognised?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">TU is recognised worldwide as the largest university of Nepal. Any masterâ€™s degree holder from TU need to do further studies if he wants to pursue further studies in the US. MBS graduates again need to do MBA there. In USA, to do an MBA, one must compulsorily have two years of work experience but it does not apply here. And they must also appear in GMAT. Here one can directly join MBA after bachelorâ€™s degree. So, there is no direct recognition but our education is not derecognised anywhere in the world. Though they donâ€™t give exact equivalence, after completing some credit hours and some courses, our degrees are recognised well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We should try to develop professional entrepreneurship as well. It is engraved in our culture that after completion of studies, everyone must do some kind of job. Everyone expects to get a good job. But there are some students who really want to develop as a professional or an entrepreneur. Some of my own students are aiming to create jobs through their entrepreneurship. More than 95 per cent students are job seekers either in national, Indian or international markets. But only a few are willing to develop as a professional or an entrepreneur. Some MBA students have even established their own cooperatives and finance companies.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the management course bridge the gap between real life workplace and the lessons taught in classrooms?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We need good teaching-learning method to bridge the gap between classroom and the workplace. The environment in the class must be such as the students can begin working immediately after completing the education and can adapt to the work environment. Similar kind of pedagogy, customisation and workplace-friendly curriculum must be selected. Then, we need the curriculum in accordance to the business expectation. That will bridge the gap between the classroom and the workplace otherwise there will be a difference always. If we can not bridge this gap, organisations will have to invest a lot in training and development of the new recruits from the management stream. So, these days, management colleges are focussing on training for a banking career to MBAs as the banking and finance sector is our major job market. If the gap is to be bridged, we have to make the classroom workplace friendly and design the curriculum accordingly. We have that curriculum but if we also have the similar delivery we can minimise the gap.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If you look at it through competition and curriculum, our local universities are in forefront. If you compare the foreign university curriculum with Nepali counterparts, we have a much better curriculum. Nepali universities are already customised with local environment while Indian university cannot be customised. You have to run according to their curriculum. Our curriculum is customised according to our culture, system, economy, situation, need and expectation. That way our curriculum is excellent and those courses have not proven any threat to us. But that does not mean it is time to stay idle. The way foreign universities are coming, they have changed the teaching-learning method. Concept of dual faculty has been introduced in Indian university affiliated colleges. It is a challenging system. That will challenge us in the future. British, American and Indian universities are willing and are coming to Nepal. However, they are mostly offering distance education, so far. Till date, we have a strong curriculum and we are not facing any threat from universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most of the leadership positions in the private sector banks and corporate houses are being held by MBA graduates from foreign universities. How do you react to this?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Companies must have found some difference in these foreign graduates. They must have certain unique personality and knowledge. But that knowledge, skill, efficiency will be transferred gradually to ours too. This will not be the same forever. In the days to come, Nepali MBA graduates can also do that. It is only a matter of time. It may take a few years or a few decades. India has a long history in management studies and MBA while we have just begun teaching MBA. Such things are not negative. We can learn from them and analyse what we lack and what special they have got. Students must self actualise and they can develop themselves accordingly.</span></div>',
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			'description' => 'The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU).....',
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		'Article' => array(
			'id' => '470',
			'article_category_id' => '40',
			'title' => ''Corporate EntitiesKnow The Importanceof Having MBAs' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="0" height="192" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dr bijay kc.jpg" style="width: 159px; height: 192px;" vspace="10" width="159" /></span></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Dr Bijay KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty Prof and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think itâ€™s going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for management graduates in the job market. However, I must admit that we must adapt ourselves to the fast changing scenario of business education. The schools should also become receptive to the needs of the business enterprises because ultimately itâ€™s they who are going to provide employment to the students graduating from these schools. I also feel that the government should take an initiative to come up with a new university that will specialise in management studies. At the same time, such a university should permit only such schools and colleges that have proven themselves in the field of management education. Another important aspect is that the faculty of business schools must have a say in matters related to examinations and quality control because they best understand the needs of the students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Is the Nepali business schoolsâ€™ curriculum well prepared to meet the demands created by globalisation? What is SAIMâ€™s curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We, at SAIM, offer a programme called MBA Global Business in affiliation with Pokhara University which, fundamentally, exposes our students to global management practices. We do have some courses on entrepreneurship which are targeted at developing job creators of the future but a majority of the students prefer to join different sectors as professionals. As for a job creator, an entrepreneur must also have some knowledge on marketing, finance and resource etc. But I do realise that to make our programme more entrepreneurship-oriented, we need to have more courses included in the curriculum by our parent university.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Could you tell us about the teaching methodology at SAIM? Are the students forced to study foreign cases primarily because there is a dearth of home-grown cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Yes, we mostly use foreign case studies and I see no harm in using those. These cases are actually very good and a management educationâ€™s basic purpose is to develop the skills of the students. We do have a few good home-grown cases which we use. You must understand here that good case studies are hard to come by and writing them is not an easy job.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sponsoring their fresh employees to study in foreign colleges. Do you think there is a lack of trust, on their part, in the quality of our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think more than anything else it is to make their employees gain further knowledge and equip them better. If they didnâ€™t have faith in the quality of education we offer, they wouldnâ€™t hire them in the first place. My feeling is that management education is a lifelong asset for the students. Getting an MBA degree does not mean that the students know everything about management. My recommendation to the corporate houses is that after three-four years of work experience, they should look at sending these students for further studies abroad.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">A lot of students are going abroad to pursue management degrees? Why are the local colleges not able to retain them here?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The fact of the matter is that, now-a-days, a lot of Nepali students want to pursue management degrees. Itâ€™s a classic case of demand overwhelming supply as the number of seats available in Nepalâ€™s business schools is not adequate to accommodate all these management degree aspirants. We understand that there is a need for more business schools and more seats. At the same time, we cannot afford to compromise on quality. Among the many business schools operating in Nepal, there are only about four or five of them providing quality education. This limited number of colleges can accommodate around 200 students at best. Itâ€™s but obvious that a lot of students not finding a seat in these colleges will look to go abroad. Besides, some good students may get admission to world renowned business schools like IIM or Harvard, for example. In such cases, we cannot be unfair and ask them to stay back in the country for our own selfish reasons.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is your curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The basic concept of management education is the same around the world. For example, a course on inventory management is same whether in the US or here in Nepal. A lot of cases provide a wider perspective of problems therefore; we look at applying them in the context of Nepal. In some cases, we have to resort to modification to suit the business needs locally.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Why do you think there is tremendous attraction to business studies these days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is because of the job opportunities available to management graduates in recent times. In the last decade-and-a-half or so, corporate entities have realised the importance of having them in their ranks. It has become relatively easier for MBA graduates to start professional careers based on their education. Besides, these graduates have performed and proved themselves at their respective workplaces which have compelled companies to hire suitably qualified management graduates. So, job opportunities coupled with career enhancement prospects have been instrumental in attracting scores of students towards business studies of late.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think MBA graduates from Nepali business schools are paid lower than they deserve?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As far as remuneration is concerned, it basically differs from company to company. From the companiesâ€™ perspective, if they want to have bright students working for them, they must be prepared to pay handsomely to attract them. What also matters is an individualâ€™s ability, he/she must be prepared to perform and prove his/her worthiness to command better remuneration. Having an MBA does not automatically guarantee an excellent pay. I am sure even if some students may begin their careers by agreeing to work for a package that is less than their expectation levels, they can always prove themselves first and then demand a better pay package.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus recruitment at SAIM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">At the end of the two-year programme, we prepare profiles highlighting academic background and credentials of all students that are passing out and distribute the profiles among the interested companies. A lot of these companies evince interest in particular individuals so we act as a link between the two. Itâ€™s both established companies as well as upcoming ventures that hire our graduates.</span></div>',
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			'description' => 'I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for.......',
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			'title' => ''We Want Our MBA Graduates To Become Job-Givers' (September 2011)',
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			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="1" height="183" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/pro subash kc.jpg" style="width: 142px; height: 183px;" vspace="5" width="142" /><b>Prof Subas KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post Graduate Diploma in Training and Development from University of Manchester, UK, his areas of specialisations include Human Resource Management/Development, Organisational Behaviour and Organisation Development. He previously worked as the Director of Centre for Management Innovation (CEMI) at Nepal Administrative Staff College and as a Training and Research Officer for the development of cooperatives in the government. In an interview with <i>New Business Age</i>, Professor KC expresses his ideas on the importance of management education in Nepal and recommends better quality to get closer to international standards. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think management education is going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think the growth has been pretty good. A number of business schools have opened in recent years as a result of the increasing demand for business education. From the perspective of both demand and supply of business education, it is a very encouraging and healthy development we have here. However, I canâ€™t say the same from a quality perspective. All the business schools in Nepal need to substantially improve their quality levels. We need to be able to supply competitive products in the market particularly because they have to compete with business graduates arriving from western universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I believe that our society is going through a process whereby it is trying to managerialise itself. What we lacked in the past was a managerial approach to address our issues and problems. However, if you look at the history of economic, social and industrial development of the western societies, you will find that they went through a managerial revolution at some stage or the other. Therefore, we need managerialisation of values, ideas, attitudes and perspectives among others. A manager looks at things differently than a person who is not trained as a manager. Our society and economy are in the process of modernisation so we need to managerialise them accordingly. This is another reason why the demand and value for management graduates have tremendously increased. I only hope that itâ€™s not a passing fad and the demand for MBA graduates will continue to grow. As for managerialisation, the process has already begun and the evidence is for all of us to see but I am not happy with the pace of it. If the existing process accelerates and catches momentum, we will need more professionals and graduates with adequate training in business administration. Therefore, I am confident that the value of MBA education will continue to grow at least in the foreseeable future.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is the competency of business graduates produced in Nepal compared to those from regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As I just mentioned, we need to maintain our competitiveness if we want to be part of the globalised economy. When we compare home-grown graduates with the ones who have graduated from western universities or the best universities in India, we are slightly behind in terms of quality. Itâ€™s not necessary that everyone who has a business degree from abroad is better than the graduates produced in Nepal. However, it would be unfair to compare our graduates with the ones from IIM, Harvard or Wharton. On the whole, MBA graduates from good business schools in Nepal are at least at par with business graduates from average or above average universities in India and elsewhere. But the business graduates from mediocre business schools in Nepal are far behind in terms of quality. Though it will take plenty of time, effort, resources and dedication, we at KUSOM want to improve the quality of our graduates to enhance their competitiveness. We are certainly on our way to make our graduates as competitive as possible.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you analyse the motives of students behind pursuing management education now-a-days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s definitely very good from the perspective of business schools. However, itâ€™s not too difficult to explain this explosion of interest in business education. There are a couple of reasons for the strong desire on part of the students to pursue business education, particularly MBA. You must understand that MBA is a global brand. With increasing exposure to the rest of the world, parents as well as students have become aware of this brand and its value. The brand value of MBA was always there worldwide but it arrived slightly late in our part of the world and it has now caught on. An MBA programme is a package which prepares its graduates for taking on diverse and competent roles and it gives them an edge over other education. This ultimately helps them put their best foot forward in the job market as well as while taking over family businesses or turning entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How has KUSOM tried to change this traditional practice?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Without talking about the pedagogy of education, we cannot talk about MBA. In fact, worldwide, it is an educational process where you would find different methodological approaches compared to other disciplines. We are trying to follow different approaches to train and educate our MBA students. We follow case-based methods and a lot of times, problem-based method of teaching. We give students problem-like situations, either real-life or imaginary problems, and we ask them to first analyse the problem using theoretical concepts or models and then come up with recommended course of action. We also apply project-based method of learning where students are given real-life problems. They have to reach out to several industries and organisations, interact with the managers, come up with real data, prepare a report and finally make a presentation based on all these. Even in a classroom environment, we create what we call interactive and group-based learning approach. Students are divided into small groups and made to discuss issues and problems among themselves so they learn through and with each other. This cross-breeding of ideas generates new ways of looking at things. We have been the pioneer and leader in using more innovative approaches through these three methods of learning namely problem-based, project-based and interaction-based methods.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Itâ€™s a tricky proposition and to be honest with you, I am not happy about the whole idea. The foreign universities that some business schools in Nepal claim to have an affiliation with are not prestigious universities by any means. I would rather like to see business schools establishing some kind of affiliation with Harvard, Kellogg, Wharton, IIM or London Business School. I will be the first one to welcome affiliations with these trusted names because it would help us raise the quality of education here. We at KUSOM, too, will be under pressure to raise our level of competency. If we are not able to bring in prestigious universities, then probably it makes more sense to pool our resources together and invest it in our own MBA education. Besides, MBA education is locally sensitive to some extent where several courses need to be customised to meet the requirements of local businesses and organisations. For example, itâ€™s no point teaching students the US copyright law. Simply having the tag of a foreign university does not ensure quality education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think the new MBA colleges have been able to address issues that the older MBA colleges lack?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Not really. In any sector be it education or otherwise, our culture and psychology is such that rather than innovating, we simply follow the leader or a successful example. KUSOM had the advantages of being the first mover but it did commit its share of mistakes. However, the colleges that followed us failed to learn lessons from our mistakes. In Nepal, we donâ€™t have this culture or psychology of critiquing that brings forth positive evaluation of others. I would be happy if the business schools in Nepal learn from each other as far as successes are concerned. And of course, it would be great if they could also learn from each otherâ€™s mistakes and donâ€™t repeat them. It would go a long way towards enhancing the quality of management education in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBAs target a job in a bank. Is that only what the MBA course is designed for? Do you see any misconception among students in this regard?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">To be honest, we donâ€™t advise or encourage students to build their careers in the banking sector <i>per se</i> but the reality is that almost two-third of our students end up working for different banks. MBA course is not designed to develop people for the banking sector only. However, the fact is that banking is among the fastest growing sectors and 90 per cent of the students, while interviewed for intake, say that they want to join a bank after graduating. Another reason is that the banking sector has some very iconic figures and a lot of students seem to have their role models and corporate leaders associated with this industry. Compensation package in banks are more attractive compared to other sectors which is another factor. Besides, a lot of our students come from well-to-do families so they want to work in banks for reasons of convenience. I am sorry to say this but it is a wrong career model for MBA graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">On our part, we are consciously orienting our students to think in terms of careers outside the banking sector. Our emphasis is on entrepreneurship and we want our MBA graduates to become job-givers rather than become job-seekers. A majority of our students joining banks is actually alarming for us. We donâ€™t want to attach our MBA programme with banking career only because that will be suicidal for us. We are working to make sure that our students diversify their career choices.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus&nbsp; recruitment at KUSOM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We have an excellent track record on recruitment as our graduates are readily absorbed in the job market. And, some of them land a job even before they complete their programme. All our graduates so far have found employment within months of graduating and have gone far in life except for those who donâ€™t want to work for others. There are some graduates who either turn entrepreneurs or join their family businesses. We have a unit here called â€˜PlaCeâ€™ (Placement Cell) supervised by an Assistant Professor and supported by a couple of alumni in the team. In this context, we are organising a job fair on September 2 for which we have sent out invitations to about two dozen companies. This job fair will create a platform for employers and the potential employees. Also, in the last term of the programme, we train our students in job search. We have recently reorganised our placement cell. Now, people associated with it have come up with an excellent plan. They maintain a database of our graduates and some of the industries which have openings for fresh MBAs. One aspect that is missing but I would like to add to our placement efforts is appointment of a professional counsellor. We do job counselling to the extent we can but it is a specialised area so we hope to have a trained job counsellor or psychologist who can do a psychometric analysis of the studentsâ€™ career potential and advice them accordingly.</span></div>',
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			'description' => 'Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post........',
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	(int) 5 => array(
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			'id' => '428',
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			'title' => 'Economic Policy Deflections (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<strong><span style="font-size: 14px;"><i><img align="left" alt="economic" border="1" height="316" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/cover(1).jpg" style="width: 315px; height: 316px;margin:10px;padding:10px;" vspace="10" width="315" />By Achyut Wagle</i></span></strong></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">A</span><span style="letter-spacing: -0.05pt;">t present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is veering more towards the replay of 19th century model of state-controlled, putatively self-sufficient â€˜nationalistâ€™ and thus effectively an isolationist paradigm. The policy shift seems to have completed a full-circle from the campaign of self-sufficiency, trumpeting of fulfilling basic needs, then open-market-oriented liberal policies to the present one marred with confusion but decidedly intended to execute state-controlled economy. </span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Apparently, as elsewhere, the vicissitudes in the Nepali economic policy has been analogues to the nature of the political dispensation the country adopted in different points in history. The externalities too have their share of influence in shaping these policies. Such an influence is surely growing with the changing world order, shifting of epicentres of economic activities and, of course, with dramatically increased communication and transportation connectivities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Vicissitudes</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal presented its first national budget in 1952. Until the fall of Rana oligarchy in 1951, Nepal remained primarily a vassal state. Any economic policy under a 104-year long Rana rule used to be based on the whims of the ruler and that too, related only to the land tax and management of major temple trusts or â€˜Guthisâ€™. Back then, almost cent per cent people relied on agriculture of subsistence nature. State hardly spent for developing infrastructure, public delivery and services systems. The fall of Rana rule and dawn of democracy in 1951 February definitely heralded a new era both politically as well as economically. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first budget had three prime policy focuses â€“ expansion of education, promotion of co-operative like structures at the village level to increase agricultural productivity and monetising the economy to the extent possible. This also welcomed the American aid in the country thus far remained largely closed, except for British and Indian diplomats, for the outside world.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Those initial policies were fairly realistic to Nepal given the socio-economic realities of that time. But, the political squabbles and power struggles overshadowed the implementation of them for at least a decade to come.&nbsp;However, despite politically a fluid situation, mid 1950s marked as a major milestone â€“ mainly in two respects â€“ in 1955 Nepal Rastra Bank (NRB) was established and in 1956 Nepal adopted its first five-year plan. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">One of the major objectives of the NRB was to replace the Indian currency, which was widely circulated in Nepal, by the Nepali currency. Second one was to speed up the process of monetising the economy in place of widely practised barter system in goods and labour.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first plan focused on transport and communication infrastructures. A substantial allocation was made in developing the administrative structure all across the country. But before the completion of the first five year plan due 1961, political coup dâ€™Ã©tat by the then King changed the whole economic paradigm, development priorities and naturally their outcomes.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Flip-Flops of Panchayat</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The second plan was only for three years by lapsing a year. It was prepared by the National Planning Commission, a Russian style central planning mechanism, which still exists with very little variation.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">From the third five-year plan on, the partyless panchayat system under the direct rule of the King imposed a guided development policy. The economic policies were rather random mix of socialistic and capitalistic overtures. The state heavily invested in setting up state-enterprises of all sorts â€“ manufacturing, services and deliveries. This was an era of â€˜generousâ€™ foreign aid and Nepal was opened to all hues of them, albeit, with caution not to politically destabilise the largely totalitarian panchayat polity. Local panchayats were the political-administrative channels employed to carry out economic and development activities. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The seventh five-year plan (1985-90), the last of panchayat era, made two major policy departures. First, the plan categorically pronounced to work towards meeting the basic needs of the people, under the slogan coined as â€˜elevating the peopleâ€™s living to Asian standardsâ€™. And, second, it adopted a ground-breaking policy flexibility of inviting foreign direct investment and improving the performance of the state enterprises as recommended by Structural Adjustment Programme (SAP) piloted by the International Monetary Fund (IMF). During this period, apart from several foreign investments in tourism related industries, two foreign joint-venture banks, Nepal Arab Bank (Nabil) and Nepal Indosuez Bank were established. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Openness</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The reinstatement of multi-party democracy in 1990 began an era of economic liberalisation in Nepal too. The political change delayed the eighth plan by two years. But the eighth plan (1992-97) firmly advocated the privatisation of and divestment from the State Owned Enterprises (SOEs) and open market policies across all sectors. Undoubtedly, the forces of globalisation and international trend of reclaimed openness through democratic governance in former USSR and Eastern Europe contributed to these developments. Whatsoever, this is perhaps the â€˜golden eraâ€™ in terms of economic policy formulation and growth in Nepal. During this period, private sector investment was impressive. Airlines, hospitals, educational institutions, banks and manufacturing units were set-up by private investment. Public investment in infrastructures, mainly roads provided firm basis for urban access to villages. The ninth plan was generally continuation of the eighth plan. But the growth spirit was dampened by the armed insurgency initiated by the CPN-Maoist in 1996 February. Amidst fear and uncertainty, the economy dragged on. But the growth path was already truncated before the end of this plan in 2002 due to spread of violence in the country-wide scale, destruction of infrastructure and absence of any substantive private investment. Despite all odds, the GDP growth in the 1990s was about five per cent annual average.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Poverty Focus</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The tenth five-year plan was adopted through wider consultations with donor community led by the World Bank and other stakeholders. The whole plan was baptised as Poverty Reduction Strategy Paper (PRSP). True to its name, its focus was on poverty reduction with added dimensions like putting women in the forefront of rural poverty reduction strategies. An interesting policy link was introduced between the structural and legal reforms and the poverty reduction. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">At the very beginning of the plan, Nepal Development Forum was organised for the first time in Nepal. As the Maoist insurgency had become widespread, it also tried to look into the links of the factors like poverty, unemployment and social unrest or insurgency. Interestingly, however, the main policy basis adopted in 1992 that emphasised on the free market economy continued till the tenth plan that ended in 2007. One of the highlights of the tenth plan was Financial Sector Reform Programme (FSRP) that aimed to achieve the central bank autonomy and efficiency, reform in public sector banks, Rastriya Banaijya Bank, Nepal Bank Ltd and Agricultural Development Bank. Several other institutional set-ups like Credit Information Bureau, Debt Recovery Tribunal etc were added. Substantive legislative reforms were made, including a composite Bank and Financial Institutions Act 2007 (BAFIA). Reform in the capital market was another important agenda which has only partially achieved.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Some of highly ambitious reform agenda like bringing the financial giants like Employeeâ€™s Provident Fund and Citizen Investment Trust under an effective regulatory and supervisory ambit and establishing an Asset Management Company remained untouched. Despite generally appropriate policy directions in the later years of the tenth plan, the focus on implementation got immensely diluted. Among many other things, the process of privatising SOEs did not go ahead as expected.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">On the Reverse Gear </span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After signing of Comprehensive Peace Agreement with the Maoists in 2007, the discourse on economic policy has taken a backseat. The Agreement and the election for the Constituent Assembly both established the apparent dominance of the communist forces in Nepali politics. This not only changed but reversed the very orientation of national economic policy. Since then, no five year plan has been formulated. Two interim plans of three-year each were adopted in view of the prolonged political transition.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Contrary to the general expectation that the post-CPA period would create more conducive atmosphere for economy to grow, the economic performance has gone from bad to worse. The policy confusion is at its core. The communist forces, particularly the UCPN- Maoist is oscillating between proletarian dogma of state-controlled, distributive economy and present day global realities that demand openness and interdependence. The partyâ€™s heavy political reliance on its trade unions have made them unruly and major source of industrial disturbances.&nbsp;This has telling adverse effect of spatial nature on manufacturing and exports, new investments and employment generation. In a nutshell, Nepali economy is again going back to the era of â€œeverything done by the state.â€ Recently it has created new state-owned corporations like Hydropower Development Bank. No government policies assertively talk about privatisation and reform. In a bid to balance the international realities and communist indoctrination, the racing horse of growth has turned into a camel.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">For the last couple of years, the Maoist-UML coalition is in power. It has vehemently pushed a three-pillar â€“ government, cooperatives and private sector â€“ concept of economy which has irked and made apprehensive to the private sector regarding its role and treatment from the state. The private sector is unwilling to consider the cooperatives a separate sectors but the subsector of the private. Given nature, scale and GDP contribution, this proposition seems justifiable. But the more left-oriented policy makers have seen cooperatives as the substitute to the â€˜commune styleâ€™ operation of the economy, thus the emphasis. The cooperativesâ€™ contribution to the national GDP is estimated to be meagre 2 to 3 per cent.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Of late, the donor community and the potential investors â€“ both foreign and domestic â€“ seem to have lost interest in Nepali economy owing largely to absolute lack of policy predictability, growing apprehension of infringement on private property rights and disturbed industrial peace at the hands of ruling-party hoodlums and even stateâ€™s failure to bring them to&nbsp;justice.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Future</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal apparently does not stand at a point of immediate course correction so as it could regain the lost trust and re-ignite the growth engine. There are two main reasons for this: first, the communists, particularly the Maoists are still essentially against the concept of giving the private sector a lead role in economy.&nbsp;Not only that, their anti-private sector rhetorics is often repeated in this or that form. Recently, they have announced that â€˜allâ€™ party leaders would pull-out their children from private schools; purely a futile and demonstrative move. Therefore, until, the party recognises the private sector as major player in the economy and reflects the same in both â€“ policies and actions, economy is unlikely to come out of present sluggish pace of growth â€“ 3.5 per cent in the last fiscal year.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The second is the complete absence of the economic policy debate in all major political parties. Any economic policy introduced so far by any party or the government is not an outcome of all through meaningful debate from the local to the central bodies in a manner a democratic outfit should ensure for ownership and the implementation of these policies. Only adoption of this practice can bring the economic agenda to the forefront of the national debate and the policy predictability could also be ensured. </span><br />
	</span></p>',
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			'id' => '427',
			'article_category_id' => '40',
			'title' => 'Sorry State Of SOEs (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;"><strong>By Pinaki Roy</strong><br />
	Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government will provide over Rs 1.77 billion to the state-owned enterprises (SOEs) as subsidies in the current financial year while another Rs 1 billion will come in as foreign grant and loan. The subsidies to the SOEs for FYs 2009-10 and 2010-11 stood at Rs 1.54 billion and Rs 1.97 billion, respectively. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Most SOEs in Nepal are in loss for a long time now. Even the ones that are making profits are because of their monopolistic nature of business. However, itâ€™s inevitable that they too stand to come under pressure once competition intensifies. For example, Nepal Telecommunications Corporation (NTC) is being increasingly challenged by Ncell, a leading mobile telephony brand in Nepal. Most SOEs that are registering mounting losses year after year owe it mainly to political interference and corruption within these public corporations. The high profile Nepal Electricity Authority (NEA), Nepal Oil Corporation (NOC) and Nepal Airlines Corporation (NAC) are among the notable SOEs that have been making losses for as long as one can remember. Suresh Kumar Regmi, Under Secretary at Corporation Coordination and Privatisation Division of the Ministry of Finance (MoF) says, â€œThe corporations must try to become profit making entities on their own instead of expecting help from the government all the time.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Keeping these SOEs alive and kicking essentially means that the state has to dig deeper into its coffers to provide for them. The same money could have been invested otherwise on development. Among the most glaring failures are those of NEA and NOC that have miserably failed to adjust prices in accordance with evolving market dynamics. NEA sells electricity to its consumers at Rs 6.57 per unit as against its cost of Rs 8.97 per unit resulting in a loss of Rs 2.40 per unit. Its accumulated loss of around Rs 19.47 billion exceeds several folds to its total asset value. Similarly, NOC is under Rs 15 billion deficit currently due to heavy losses on petrol, diesel, kerosene and liquefied petroleum gas (LPG) prices. To make matters worse, it is plagued with corruption, political interference and poor governance. The government has no choice but to bailout these SOEs year after year because electricity and fuel are basic services that people of this country cannot be expected to live without. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The question arises as to how long can the state rescue the loss-making SOEs by compromising on development expenditure. NAC â€“ once the pride of the nation â€“ has gone from bad to worse with losses amounting over Rs 2 billion. Boasting a sizeable fleet of 21 aircraft at one point of time, it is left with only three small aircraft that fly domestic routes and two medium sized jets. Among the biggest foreign currency earners not too long ago, NAC today merely watches in despair other domestic and international airlines snatching away its market share. Never-ending controversies on aircraft purchasing, political meddling with appointment of staff and loans have hit the corporation hard in the recent past. The employees appointed by the public enterprises (PEs) stood at 33,603 in FY 2008-09, while this figure dropped slightly to 33,526 in the succeeding fiscal year. The average monthly expenditure of these employees reached Rs 34,126 in FY 2009-10.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The taxpaying populace is infuriated because its money is funnelled into these failed enterprises while development activities and service delivery are taking a beating due to, among others, inadequate funding. Furthermore, there has been a lack of genuine intent to reform or privatise the loss making enterprises. The SOEsâ€™ survival now stands purely for political reasons. Their existence does not add significant value to the countryâ€™s productive capacity. During FY 2009/10, 22 PEs earned net profit, whereas 14 PEs recorded loss; some of them had negative net worth. The governmentâ€™s investment in these SOEs has reached a whopping Rs 84.91 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The total operating income of these enterprises in FY 2009-10 registered an increase of 21.63 per cent over the previous FY and reached Rs 130.98 billion. While the operating income of service sector enterprises increased by 70.2 per cent, the industrial sector enterprises registered the least increase in operating income at 4.2 per cent. The net fixed assets of 36 enterprises that totalled Rs 133.740 billion in the fiscal year 2008-09, reached Rs 139.365 billion by the end of the fiscal year 2009-10, an increase of 4.2 percent. While analysing the entire profit and loss of the 36 PEs, the net profit of Rs. 10.55 billion they had earned in fiscal year 2009-10 grew by Rs 8.3 million in the fiscal year 2010-11. However, if three major profit making SOEs are taken out, these statistics cut a sorry figure in itself. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Akin to the case in other countries, the state enterprises in Nepal too are present in areas that could be more successfully occupied by the private sector. Incompetent SOEs have blocked private dynamism completely and, at the same time, necessitated an insurmountable financial and administrative burden. In contrast, privatisation promises to free up public assets for activities of urgent attention and facilitate improved and inexpensive services besides unlocking prospects for private sector growth. However, the Privatisation Cell of the MoF has no immediate plans to privatise SOEs anytime soon. â€œWe are not in a position to close loss making enterprises either as they provide employment to thousands of people,â€ Regmi informs on a rather helpless note. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Nepalâ€™s privatisation programme articulated in the 9th plan envisions promoting private sector participation in the economy. A number of enterprises, mostly agricultural and industrial, have been privatised since the programme began in 1992 with the government playing the role of a catalyst. However, a number of productive SOEs such as Bansbari Leather and Shoes Factory (BSLF) and Agricultural Tools Factory (ATF) have ceased to function after being privatised owing to governmentâ€™s thoughtlessness in selection modality and consultation process, and lack of proper homework while selling them. Over the last decade or so, the privatisation drive has slowed down considerably to the extent of coming to a virtual standstill.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The delicate financial health of the SOEs and their failure to adequately gratify market demands is a persistent problem that cannot be resolved by gifting subsidies and granting loans. Mismanagement, overstaffing, poor governance and accountability, competition from private players and most importantly, politics prevailing over economic imperatives have destroyed these SOEs and led them to their present dismal state. One can safely assume that unless there are radical and wholesome practices pursued such as privatisation (save the ones that are strategically linked to critical security and national interests) of these ailing enterprises, the SOEs will continue to be resigned to their fate and the taxpayers of this country will keep on bearing their burden. Worse, bailing out the SOEs of their financial chaos time and again only makes them more inefficient. Itâ€™s but tragic that the sick enterprises are encouraged to take the state and the nation at large for granted. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The Loss-making SOEs</span></div>
<table border="0" cellpadding="0" cellspacing="0" style="margin-left: 4pt; border-collapse: collapse; width: 321px; height: 678px;">
	<tbody>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border: 1pt solid white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Name of the SOE</span></b></span></div>
			</td>
			<td style="width: 59.9pt; border-width: 1pt 1pt 1pt medium; border-style: solid solid solid none; border-color: white white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Total Loss </span></b></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Dairy Development Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 325.1 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Herbs Production and Processing Company Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 136.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Hetauda Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 619.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Janakpur Cigarette Factory Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 800.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Drugs Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 485.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Udaypur Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.773 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oriental Magnesite </span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 3.597 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Food Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.107 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oil Corporation Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 8.418 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Airlines Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.557 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Gorkhapatra Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 89.7 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Television</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 760.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Water Supply Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 391.4 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Electricity Authority</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 18.230 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Agricultural Development Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 4.391 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rastriya Banijya Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 11.228 billion</span></span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>Source</i>: Ministry of Finance Report, Ashad 2068</span></div>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government.....',
			'sortorder' => '341',
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			'article_date' => '0000-00-00 00:00:00',
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	(int) 7 => array(
		'Article' => array(
			'id' => '426',
			'article_category_id' => '40',
			'title' => 'Policy Twists For Public Enterprises (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: 0.05pt;">T</span><span style="letter-spacing: 0.05pt;">he budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and ensure efficiency of public enterprises. However, this yearâ€™s budget has also mentioned a policy to disinvest the government shares among general public.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The latest budget is a step backward on privatisation policy adopted by previous governments. The budget presented by Dr Ram Sharan Mahat for the fiscal year 2007/08 had proposed a gradual privatisation of the state-owned enterprises. Then, the budget of 2008/09 presented by Dr Baburam Bhattarai of the UCPN-Maoist led government reversed the policy of privatisation. Next yearâ€™s budget by Surendra Pandey gave continuity to Bhattaraiâ€™s agenda to increase investments in government corporations. Economic experts had argued against increasing the investment in state-owned enterprises instead of taking up privatisation measures.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Though there were attempts of privatisation during the Panchayat system, they were unsuccessful.. The concept of socialism faded and liberalisation came into picture after the fall of communism in Eastern Europe. Nepal could not avoid the influences of the global change. There was massive change in Nepali economic policy with the restoration of democracy as the process of privatisation of public enterprises began after 1991. Experts have it that the new initiative was taken mainly because of the pressure from IMF, The World Bank and other donors. The change was incorporated in the White Paper published by the Girija Prasad Koirala government in 1991. The policy tried to balance the public and private sectors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The Koirala government emphasised on selling the shares of public enterprises at the stock market. That was aimed at widening the ownership of the newly-privatised corporations and also to ensure competition for companies as well as consumers. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Harisiddhi Brick and Tile Factory, Bhrikuti Paper and Pulp Factory and Bansbari Leather and Shoe Factory were privatised in the first phase. In 1993 and 1994, 14 companies were selected for privatisation. Seven of them were wholly government-owned while the rest had joint-ownership with the private sector. Similarly, in the second phase, Balaju Textile Factory, Nepal Film Development Corporation, Nepal Lube Oil, Bitumen and Barrel Industry and Raw Hide Collection and Development Corporation were privatised. Likewise, Jute Development and Trading Corporation and Tobacco Development Company were liquidated.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The policy took a different turn when the Communist Party of Nepal (UML) came to power in 1994. Unlike the Nepali Congress, the UML government favoured public enterprises. The budget speech of the same year read, â€œTo lessen the financial burden of the government, a privatisation program based on economic policies of the government will be implemented. There will be separate listing of corporations that are to be privatised and those that will not be privatised. The privatisation programme will be expedited for those corporations included in the privatisation lists.â€ However the government policy could not take off as the government did not even list the companies for privatisation. Further privatisation was certainly out of question. The budget of 2001/02 tried to be most intensive and aggressive towards public enterprises. The budget presented by Dr Ram Sharan Mahat promised to set up a separate unit in the Ministry of Industry, Commerce and Supplies to coordinate and monitor the price, quality and quantity of goods and services produced by the public sector. This budget also decided to prepare strategic and organisational planning to reform managerial, accounting and financial systems of the public enterprises. Most remarkably, it also decided to convert state-owned enterprises into companies curtailing the number of board members, their functions and duties to ensure professionalism.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">On minimising the cost to government, the budget presented by Dr Mahat read, â€œThe tendency of increasing short-term benefits by neglecting social security in public enterprises and development boards will be discouraged.â€ He proposed the provision to manage pension and gratuity compulsorily through Citizen Investment Trust. Likewise, the executive chief was made liable for creating any new financial liabilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another significant proposition by Dr Mahat was to encourage the private sector investment where the involvement of the government is deemed unnecessary and where there existed a high possibility of attracting private sector.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">After 2001, 17 companies have been either liquidated or privatised. Nepal Telecommunication Company was the latest one to join the list in 2008 when its some shares were sold to the public. However, the privatisation process stalled completely after 2009/10 except for the sale of government shares of Small Farmer Development Bank to Small Farmers Cooperatives&nbsp; in 2010/11.</span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
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			'description' => 'The budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and.....',
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	(int) 8 => array(
		'Article' => array(
			'id' => '425',
			'article_category_id' => '40',
			'title' => 'What’s Wrong With Public Enterprises? (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><span>T</span><span>he government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by Bharat Mohan Adhikari. The promise made in the budget 2010/11 to form the committee has however remained unfulfilled.&nbsp;The board is expected to manage and run the corporations effectively and efficiently. Suresh Kumar Regmi, Under Secretary of Corporation Coordination and Privatisation Division at the Ministry of Finance, said the proposal to constitute the board has been sent to the cabinet for approval.</span><br />
	</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The role of the government to act as a referee for the development of economy seems to be neglected by the new budget. Rather, it has proposed the concept of an economy led by cooperatives. Obviously, private sector is thoroughly dissatisfied with the government move. Dr Ram Sharan Mahat, former Finance Minister and Nepali Congress Leader, said, â€œThe proposal of the government-owned cooperatives is not an alternative. Rather, they are against the self-help spirit of the cooperatives.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the new budget, the government has tried to democratise the selection of Chief Executive Officers and General Managers of public enterprises. Merit-based selection is expected to welcome capable and qualified leadership. Often, it is alleged that poor leadership in the corporations led to their deterioration.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Similarly, this yearâ€™s budget says, â€œA policy of disinvesting the share of the public enterprises to the public will be implemented.â€ The share of the government was Rs 82.76 billion in 2009/10 while its total loan investment in 36 public enterprises remained at Rs 84.92 billion. In the previous fiscal year, the figures stood at Rs 86.13 billion and Rs 74.60 billion respectively. According to the economic survey of 2010/11, share investment of the government decreased by 3.9 per cent while loan investment rose by 13.8 per cent.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the name of reforms, the government is funnelling billions of rupees from the state coffers as subsidy to public enterprises which are constantly failing to show their competency in comparison with the private sector. This year, an estimated Rs 2.77 billion is being provided as subsidy. Similarly, the subsidy was Rs 1.97 billion in 2010/11 and Rs 1.54 billion in 2009/10. Regmi said, â€œThe corporations will not progress if they remain dependent on the government. Rather, they must manage their operations on their own.â€ â€œWhen the private companies in the same sector can do well, why canâ€™t the government-owned companies make profit,â€ he asked.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the last fiscal year, out of the 36 public enterprises, 22 were in profit while 14 were bearing losses. None of the corporations engaged in production are in profit. The economic survey shows that the net profit of Rs 10.55 billion in fiscal year 2009/10 grew by Rs 8.3 million in the fiscal year 2010/11. The share of net operating income of the public enterprises has been 11.2 per cent of the GDP. Regmi said though the number of profit-making companies has increased in recent years, the combined profit of the corporations has not increased. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although Nepal Tourism Year 2011 is going on, national carrier Nepal Airlines Corporation (NAC) is in the worst possible condition. Similarly, Hetauda Cement and the first cigarette factory of the nation, Janakpur Cigarette Factory, are also in dire straits. Despite a monopoly in the market, it is unfortunate to see Nepal Oil Corporation (NOC) and Nepal Electricity Authority (NEA) in heavy losses. Stories of other 14 corporations are no different. Poor management, inefficiency, corruption, weak leadership, skewed policies are to be blamed for their failure.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Likewise, the net fixed asset of the 36 public enterprises was Rs 133.740 billion in the fiscal year 2008/09 which increased to Rs 139.365 billion by the end of the fiscal year 2009/10, up 4.2 per cent. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">With the liberalisation policy on economy introduced after the restoration of democracy in Nepal, the government initiated the process of privatisation, liquidation and termination of state-owned enterprises in 1993. Ever since, 30 companies have been divested of which 18 corporations have been privatised while 11 have been liquidated and one, Nepal Transport Corporation, was dissolved. The disinvestment has been carried out through the sale of businesses assets, partial disinvestment of shares, sale of current assets, leasing of buildings and land, management contract, liquidation, and termination. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector and some economists are complaining that the government has taken a regressive step by reverting to state-controlled economy from the currently liberal economic regime. Mahat said the proposal of the government brought through the budget 2011/12 is suspicious and non-transparent. â€œThe government has failed to bring any concrete policy for the state-owned enterprises. It lacks an action plan for the corporations,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Experts opine that the government should play the role of a referee. It should work for the development of the real sector and the economy but it should not involve in doing business. They say competitive market entities should be handed over to the private sector. Dr Prakash Chandra Lohani, former Finance Minister and Co-president of Rastriya Janasakti Party, says the government and the private sector must complement each other. He opines without ensuring law and order and a strong policy framework, the private sector cannot prosper. â€œFor that, competitive regulation is necessary and the government should try to minimise the risk of the private sector. However, this yearâ€™s budget does not talk about vision and roadmap for the private sector,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although much criticised, the public enterprises have been the source of employment to 33,603 people at executive level appointed by the management in 2008/09. However, the figure dropped to 33,526 in the succeeding fiscal years. Regmi also accepts that public enterprises&nbsp;are overstaffed. Experts opine that the number of staff in sick corporations can be lowered, which may lower their cost of operation and.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">According to Regmi, the government does not have a list of public enterprises that they want to privatise or a policy framework to privatise them in the near future. He suggests that the policy should be made in coordination with line ministries to give such companies the right direction. â€œTrying to save them by the finance ministry alone will not work,â€ said Regmi. â€œA political decision can choose either to close down or keep operating the public enterprises. However, as thousands of people are getting employment even in sick public enterprises, they cannot be abruptly closed.â€ </span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by.....',
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	(int) 9 => array(
		'Article' => array(
			'id' => '424',
			'article_category_id' => '40',
			'title' => 'International Privatisation Trend (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">M</span><span style="letter-spacing: -0.05pt;">otivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation programmes in the last twenty-five years or so. Decades of poor performance and inefficient operations by SOEs led the governments to embrace privatisation. Thousands of SOEs have been given away to the private sector in Africa, Asia, Latin America, and Eastern and Western Europe. Throughout the world, annual revenues from privatisation soared during the late 1990s, peaking in 1998 at over US $100 billion.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Widespread privatisation in recent decades has generated a reasonable hype concerning the effects of ownership on performance. Most studies find that privatisation has a positive impact on profitability and efficiency of business firms. However, very little is known about the effects of partial privatisation where the government remains the controlling owner. Indiaâ€™s privatisation programme has followed a pattern of partial privatisation through share offerings but at a particularly slow rate. Between 1991 and 1999, the Indian government raised about $9 billion in privatisation revenues, compared to nearly $71 billion raised in Brazil and $21 billion in China over the same period, according to Global Development Finance Report 2001.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Since both ownership and control shift to the private sector at the same time, full privatisation makes it difficult to distinguish between the political and the managerial perspectives. In contrast, under partial privatisation, the shares of the firm are traded on the stock market while the firm remains under government control and subject to political interference. Letâ€™s have a look at the following examples of how some countries and regions responded to privatisation in the last two to three decades. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">India</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The state intervention in SOEs has been undergoing a close scrutiny in many developing countries including India since 1980. The argument was that excessive political interference and lack of managerial interest (autonomy) hampered the performance of SOEs. Economic policy and state-owned sector in the post-independent India can be divided into four phases: (i) 1950-1965, (ii) 1966-1984, (iii) 1984-91 and (iv) post-1991 policy regime. The second sub-period of the second phase i.e. 1973-84 recorded a slow process towards liberalisation, which culminated into an irreversible process of liberalisation of the economy through the third (1984-91) and during final phase (1991 onwards). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Concepts such as liberalisation, privatisation, disinvestment and market-friendly approach replaced the old concepts of socialism and mixed economy. The period of 1966-84 culminated in a total transformation in the economic policy where economy was made predominantly dependent on market forces rather than on the state. The attempt, it seemed, was to depoliticise economic decisions as far as possible. The industrial policy that was initiated in 1985 was the culmination of the process of drifting away, which started during the second phase of the economic policy in India. The 7th Plan (1985-90) proposed larger planned outlays for the private sector as compared to the state-owned sector for the first time in the planning history of India.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India witnessed a major policy reform programme consisting of considerable deregulation of industrial sector as well as liberalisation of foreign investment and technology imports since July 1991. The 8th, 9th and 10th Plan documents suggested many policy initiatives towards restructuring, modernisation, rationalisation of capacity, product-mix changes, privatisation, autonomy, performance accountability and disinvestments policy. The movement of denouncing socialism that started in many parts of the world influenced Indiaâ€™s policy makers as well. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India undertook sweeping economic reforms that included deregulation and privatisation in response to the foreign exchange crisis in 1991. Since the Industrial Policy Resolution of 1991, which outlined the economic reforms, nearly every governmentâ€™s annual budget has declared that the privatisation goal is to reduce government ownership to 26 per cent of equity. In the decade following the launch of the privatisation programme, the government sold minority shares through a variety of methods including auctions and public offerings in domestic markets, and through global depository receipts in international markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The share of state-owned sector in total investment continuously declined since the 1980s is illustrated in the following table. The relative shares of the state-owned and private sectors during 7th, 8th, 9th and 10th plans clearly signal the rising importance of the latter at the cost of the former.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The 9th Plan divided SOEs into three categories (i) profit-making PSEs (Public Sector Enterprises); (ii) PSEs making marginal profits and losses; and (iii) PSEs incurring substantial losses. Accordingly, all PSEs were placed in suitable categories. Disinvestment Commission, started in 1996, primarily to discipline PSEs and make them result oriented was developed into a full-fledged Ministry for Disinvestment, thereby institutionalising the process of reforms and restructuring of PSEs. Once it was established that privatisation of SOEs was no longer a choice but an imperative, the stage was set for privatisation of SOEs. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Privatisation Trend</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The emphasis of Indian privatisation from 1991 to 2000 was on disinvestment through offloading of governmentâ€™s shares to the state-owned or financial institutions. During this period, the government offloaded shares in as many as 39 SOEs. However, since March 2000, the emphasis has increasingly been on strategic sales of identified SOEs. The table below briefly summarises the amount realised and the number of SOEs disinvested or privatised till November 30, 2003.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Modern Foods Industries Limited (MFIL) was the first SOE to be strategically sold followed by Bharat Aluminium Company (BALCO). Fifty one per cent of BALCOâ€™s shares were sold to Sterlite Industries for Rs 5,515 million. Following this sale, the government was quick to proceed with strategic sales in important firms by divesting 51 per cent of the shares in Computer Maintenance Corporation (CMC) to Tata Sons and 74 per cent of the shares in HTL, PPL and Jessop (for Rs 550 million, Rs 1,520 million and Rs 180 million respectively) to Himachal Futuristic Corporations. Nineteen hotels of Indian Tourism Development Corporation (ITDC) and three hotels of Hotel Corporation of India Ltd (HCIL) collectively contributed Rs 6,866 million towards divestiture or disinvestment proceeds. For all these 19 hotels, 100 per cent of the equity was sold. In terms of individual sales, maximum proceeds (Rs 37 billion) were collected by selling 25 per cent of the equity in Videsh Sanchaar Nigam Limited (VSNL), followed by the contributions made by selling 27.5 per cent equity of Maruti Udyog Limited (MUL â€“ Rs 24 billion) and Indian Petrochemicals Corporation Limited (IPCL â€“ Rs 15 billion). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Post-liberalisation era</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The government was forced to revise its economic policies following the exceptionally severe balance of payments and fiscal crisis in 1991 which resulted in disinvestment of government equity in the PSEs. The government steadily paved the way for a level playing field and competition with the private sector and thus resulted in PSEs being envisioned as revenue earning ventures of the government. Thirty individual Central PSEs were divested to select financial institutions namely Life Insurance Corporation (LIC) of India, General Insurance Corporation and Unit Trust of India (UTI) in bundles. Post-1996, sale through the global depository receipt route was also permitted and PSEs capitalised this opportunity to access international financial markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There was a strategic shift in the government policies between FY 2000 and FY 2004 that facilitated â€˜Strategic Saleâ€™ or disinvestment of government stake in PSEs. The process involved transfer of big blocks of shares and management control to the strategic partners that were identified through competitive bidding. Post-FY 2005, disinvestment realisations were primarily through the sale of small equity stakes. The government realised an amount of Rs 534.23 billion as disinvestment proceeds between April 1992 and May 2008.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">In recent times, several government-owned companies have either started disinvestment process or are planning to begin so including the Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Corporation Limited (ONGC). According to Disinvestment Secretary Sumit Bose, Follow on Public Offer (FPO) in SAIL was expected to raise Rs 7-8,000 crores while divestment of five per cent stake in ONGC will fetch the government around Rs 13,000 crores based on present market valuations. The government has proposed a disinvestment target of Rs 95,000 crores from the sale of shares in public sector companies over the next three fiscals, including Rs 40,000 crores in the current fiscal. Last fiscal, the government had raised Rs 22,400 crores through disinvestment in PSU companies by coming out with three Initial Public Offerings (IPOs) and three FPOs. The value of Indian governmentâ€™s stakes in listed SOEs is estimated at about US$ 320 billion and if unlisted companies are included as well, the total value would be approximately US$ 460 billion. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Russia</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The world learnt from the Russian experience that introduction of the â€˜shock therapyâ€™ or rapid mass privatisation can also lead to massive corruption. It underlined the fact that good governance mechanism is vital. Historically, private ownership of production facilities, financial companies and land was absent in the Union of Soviet Socialist Republics (USSR) for over 70 years starting 1917. As per the constitution of the Russian Socialist Federative Soviet Republic of 1918, land was transferred to farming units for management; all production units to â€˜labour collectivesâ€™; and the ownership of forests, natural resources, etc to the state. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Russian government spontaneously introduced a mass privatisation process in 1991 and introduced what was termed as â€˜shock therapyâ€™ â€“ instant price decontrols and rapid opening up of markets. This large scale movement of ownership transfer brought with it massive corruption in the auction process. The mortgage auctions in 1995 were some of the worst cases. Finally in 1997, a new model of privatisation was instituted under which companies were sold rather than distributed. Further, in 1998, the government also introduced processes of asset valuation by international advisors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Current Scenario</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The SOEs continue to play an integral role in the Russian economy even though the role of private sector is ever expanding in Russia. The Russian government believes in the state role through ownership for industrial growth, economic diversification and energy security. The fraction of firms with 100 percent state and mixed (state and private domestic ownership) as per 2007 data is as follows: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; All firms and organisations: <br />
	11 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Employment: 39 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Capital investment: 32 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Fixed assets (state ownership greater than 50 percent): 23 percent. </span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Hong Kong</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong is a relative newcomer to the global club of countries opting for privatisation. It has actually missed some opportunities to learn about and avoid certain problems of privatisation experienced in other countries. There have also been socio-political issues that are unique to Hong Kong. Its experience needs to be seen in the context of the long established worldwide phenomenon of SOEs and the trend of privatisation from early 1980s.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Despite being a British colony, Hong Kong didnâ€™t join the global trend of privatisation during 1980s and 1990s. Some ideas about privatisation were addressed in the government report for Public Sector Reform in 1989 but not followed up for two main reasons. First, there was no strong practical need to privatise public enterprises. Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), had once acknowledged that the erstwhile colony had little external, political or budgetary pressure to reform its public sector. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong recorded public budget surpluses year after year in the post-war period, much envied by other governments. The second reason for â€˜no privatisationâ€™ was political. During the long political transition till 1997, China opposed any colonial government proposal to privatise government assets in fear of a British plot to sell out the interests of the future HKSAR administration. However, the arguments about privatisation in Hong Kong have been reversed after 1997.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Divestment Plans</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Before the return of sovereignty to China in 1997, the Hong Kong government did not divest public assets because of Chinaâ€™s opposition and an absence of budgetary pressure. During the political transition, the colonial government was regarded as fairly competent in dealing with public confidence crises. However, after 1997, these conditions changed quite dramatically. The new conditions in HKSAR prompted the government to formulate divestment plans, but at the same time they raised potential problems for the implementation of the plans. After the political transition, China no longer opposed privatisation proposals of the HKSAR government.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Three Divestment Exercises</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Hong Kong community is generally receptive to the ideas of small government and privatisation compared to many other developed communities. The general acceptance in Hong Kong is partly due to the fact that the government uses public offers as the main strategy of divestment. The popular belief is that citizens will make good profits once they are allocated shares from the governmentâ€™s IPOs. Although the public generally favours public listing, the divestment exercises in Hong Kong were not without controversy. Fundamental conflicts of public interest in privatisation have had to be resolved from time to time. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">MTRC</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Mass Transit Railway Corporation (MTRC) was the first target of divestment in Hong Kong. In late 1999, the government introduced new legislation to replace the MTRC ordinance and to grant a proposed new MTRC company the right to operate the subway system. In October 2000, 24 percent of the MTRC shareholding (US$1.28 billion in value) was divested by way of listing in Hong Kong, London and New York. The offer was 18 times over-subscribed and broke the local record for an initial offering. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Tunnels and Bridge</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After the Legislative Council approved the relevant grant of power, the government divested the future revenues from five toll tunnels and a toll bridge in August 2004 under a securitisation scheme involving the listing of government notes worth US$ 770 million. The offer to individual investors was two times over-subscribed, and the portion earmarked for institutional investors was heavily subscribed. The assets themselves continue to be government-owned through a new government company, Hong Kong Link 2004 Limited. The day-to-day operation of the tunnels and bridge as managed by franchised private firms remains unchanged.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Link-REIT</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">The Housing Authority (HA â€” a statutory corporation) announced in July 2003 that it planned to divest most of its retail and car-parking facilities in public housing estates. The plan was that the government would first set up a new asset-owning and management company, Link Limited, and then divest its ownership entitlement to the companyâ€™s future revenue streams in full by way of the listing of a real estate investment trust fund, Link-REIT. The trust fund, REIT, was chosen as a vehicle for divestment partly because it would restrict the scope of Link Limitedâ€™s business initiatives and partly because the government wanted to promote REIT as a new type of financial product. The HA planned to transfer the retail and car-parking assets to Link Limited after the scheduled listing had been completed. In due time, Link Limited took over the day-to-day management of the HAâ€™s retail and car-parking facilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Latin America</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Latin American countries have been very active in privatisation. Even against the backdrop of massive economic transformations in transition economies, the privatisation record of Latin America seems remarkable. To facilitate their shift to a market economy, most Latin American countries launched mass privatisation programmes that resulted in dramatic reductions of state ownership. Latin America accounted for 55 percent of total privatisation revenues in the developing world in the 1990s followed by transition economies in Eastern Europe and Central Asia at 21 percent. The decline in the economic activity of SOEs has been more substantial in Latin America than in Asia and Africa, bringing levels close to those of industrialised countries. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Dramatic differences in the extent of privatisation are also evident within regions. In Latin America, for example, countries with large state owned sectors, such as Ecuador, Nicaragua, and Uruguay, barely privatised at all in the 1990s, while others such as Argentina, Bolivia, Guyana, Panama, and Peru raised revenues from comprehensive privatisation programmes that amount to over 10 percent of GDP. The difference in the extent of privatisation across countries and the large amount of assets in the hands of the state heightened the importance of understanding the privatisation record and of developing lessons for future privatisation programmes. However, Latin America has virtually halted its privatisation process in recent years after being the most active region in the 1990s. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><b><i>References</i></b></span></div>
<div style="margin-top: 5.65pt; text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>1&nbsp;&nbsp; Madhu Bala (2006) â€˜Economic Policy and State Owned Enterprises: Evolution towards Privatisation in Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>2&nbsp;&nbsp; â€œKPMG Internationalâ€ (2010) â€˜Resurgent PSUs Vibrant Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>3&nbsp;&nbsp; Nandini Gupta (2005) â€˜Partial Privatization and Firm Performanceâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>4&nbsp;&nbsp; Rikkie L K Yeung (2005) â€˜Divestment in Hong Kong: Critical Issues and Lessonsâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>5&nbsp;&nbsp; Alberto Chong &amp; Florencio LÃ³pez de Silanes (2004) â€˜Privatization in Latin America: What Does the Evidence Say?â€™</i></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>',
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			'description' => 'Motivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation.....',
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		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nationâ€™s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, â€œWe canâ€™t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.â€&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. â€œThe stateâ€™s attitude is the major hindrance towards attracting private sector investment in renewable energy,â€ alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who donâ€™t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, â€œI personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.â€</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepalâ€™s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump â€˜right wasteâ€™ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. â€œIf we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,â€ Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nationâ€™s industries avert collapse. On the other hand, NEA wonâ€™t be affected adversely because the industries will be there to make up for its â€˜apparent lossâ€™.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the countryâ€™s topography provide ideal conditions for the development of some of the worldâ€™s largest hydroelectric projects. â€œIf we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,â€ Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepalâ€™s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors donâ€™t have an alternative. â€œThe FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,â€ he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, â€œSaudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.â€ He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. â€œMy observation is that energy crisis will continue in the next five years,â€ says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. â€œWe must determine our total energy-mix scenario over the next five, 10 or 20 years now,â€ he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. â€œNepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, â€œI see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.â€ </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepalâ€™s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. â€œThe total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,â€ claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepalâ€™s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. â€œWe are certainly not late in identifying the sectorâ€™s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, â€œThis country will collapse if we donâ€™t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepalâ€™s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'created' => '2011-09-05',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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	(int) 12 => array(
		'Article' => array(
			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producersâ€™ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious â€˜Manager of The Year 2006â€™ award from Management Association Of Nepal (MAN) and â€˜Excellence Award 2010 in Energy (Hydropower)â€™&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sectorâ€™s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, itâ€™s about time we gave topmost priority to hydropower development in Nepalâ€™s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earthâ€™s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepalâ€™s cities and towns are situated at an elevation. Hence, they donâ€™t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, itâ€™s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we donâ€™t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we canâ€™t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which canâ€™t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We wonâ€™t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesnâ€™t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you donâ€™t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past â€“ the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening â€˜another bankâ€™? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
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			'created' => '2011-09-05',
			'modified' => '2012-08-23',
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			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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	(int) 13 => array(
		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because itâ€™s the rainy season. But once monsoon is over, it will be back to square one â€” we will experience 14-15 hours of power outage again. As for renewable energy, I donâ€™t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA wonâ€™t have to lose because the industries are there to make up for NEAâ€™s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but canâ€™t agree with each other or we donâ€™t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in todayâ€™s context, how can we export when we donâ€™t have enough for ourselves? Take Bhutanâ€™s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the countryâ€™s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the â€˜right wasteâ€™ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Whatâ€™s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEAâ€™s low rates , which are highly subsidised. Therefore, itâ€™s no surprise that the private sector does not want to invest in renewable energy. They wonâ€™t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 14 => array(
		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Current Scenario</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Building Parameters</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for the Masses</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for Foreigners</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Looking Forward</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
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			'id' => '473',
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			'title' => 'Business Of B-schools (September 2011)',
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			'content' => '<p style="text-align: justify;">
	<strong><span style="font-size: 14px;">By Gaurav Aryal</span></strong></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" height="252" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/sep-cover.jpg" style="width: 251px; height: 252px;" vspace="10" width="251" /></span><span style="font-size: 14px;">During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly trained human resource in the field, the management education also thrived as the business in itself. The growing number of banks, financial institutions, corporate houses and increased awareness about the need for modern management expertise to run any commercial&nbsp;venture fueled the growth in management education. Private sector investment in setting up the state-of-the-art institutions and immensly improved quality of education indeed have had multiplier effect in adding attraction to both-investors and students. More than&nbsp;one and half dozen colleges affiliated to three universities - Pokhara University, Purbanchal University and Kathmandu University (KU) - are running either Master in Business Management (MBA) or Executive MBA (EMBA) or both. Though the Tribhuvan University (TU) has not introduced any of these courses, it is running Master in Business Studies (MBS) for decades now. TU plans to introduce an MBA programme in the near future. All these universities also run Bachelor in Business Management (BBA), a four year course while TU has Bachelors in Business Studies (three year course) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A few years back studying medicine was supposed to be the most prestigious academic pursuit for a whole lot of students and guardians. Today, the market demand, expansion of career prospects in management sector, growing importance of human resources in companies and distinct teaching-learning methodology are luring more students to management education, perhaps, more than in any other discipline. Nepali universities are also working hard to produce quality managers to compete in the market where top-notch managers are still mostly from foreign universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The History</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management education began in Nepal in the form of commerce education in 1954 with the establishment of commerce department in government-owned Tri-Chandra College. The college had introduced Intermediate of Commerce (ICom) and Bachelor of Commerce (BCom) programs with 27 and four students respectively. The programme was affiliated to an Indian university till the establishement of Tribhuvan University (TU) in 1959. The following year, in 1960, TU began offering post-graduate programme in commerce called Master in Commerce (MCom) as well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Bijay KC, the Dean and Professor at South Asian Institute of Management (SAIM), says introduction of National Educational System Plan in 1971 proved a milestone in the evolution of management education in the country. TU set up Institute of Business Administration, Commerce and Public Administration. This institute was renamed as Institute of Management in 1976. It is now called Faculty of Management (FOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal National College (later renamed Shankar Dev Campus), Public Commerce College (Kathmandu), Nepal Commerce College (Lalitpur), Thakur Ram College (Birgunj), Mahendra Morang College (Biratnagar) ruled the roost for a long period in the management education of Nepal. Numerous prominent business persons&nbsp;and management gurus were educated in these colleges. These colleges were later brought under the direct control of TU (as TUâ€™s constituent campuses) following the introduction of National Education System Plan of 1971.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That system of complete state control on education was withdrawn in 1979 and TU started granting affiliation to colleges set up by the private sector. However, it was only after 1991 (i.e. after the advent of multi-party democracy) that there was real growth of colleges from the private sector in management as well as in other types of higher education. That was the year when Kathmandu University (KU) was set up. KU set up Management School (called KU School of Management or KUSOM) in August 1993.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That was followed by establishment of Purbanchal University in 1995 and Pokhara University in 1996. Thus, there are four universities in Nepal now providing management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These universities are competing to introduce new tools and techniques in management education. For example, MBA with modern teaching-learning methodology and accordingly courses designed at these universities have helped maintain almost global standards in upper-level management education. A new brand of MBA â€“ EMBA has been introduced recently targeting practising managers. This management programme has been introduced in several private colleges affiliated to Pokhara University, Purbanchal University as well as the central college of KU called KU School of Management (KUSOM).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As of 2009, TUâ€™s FOM had 28 constituent colleges and 506 affiliated colleges. The latest entry (August 2011) in the website of Pokhara University shows that it has over ten colleges affiliated to it for different types of management education in the Bachelorâ€™s or Masterâ€™s level in addition to its central campus of PU School of Business. Similarly, KU has three colleges affiliated to it for such courses in addition to its central campus KUSOM. Purbanchal University has over 35 constituent or affiliated colleges for such programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">These colleges offer such courses as Master of Travel and Tourism Management (MTTM) at the Masterâ€™s level in addition to MBA, MBS and EMBA. At the Bachelorâ€™s level, there are other specialised programmes as well in addition to BBS and BBA. The examples are Bachelor in Hotel Management (BHM), Bachelor of Information Management (BIM), Bachelor of Travel and Tourism Management (BTTM), Bachelor of Business Information System (BBIS) and Bachelor of Commerce Studies (BCS).&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, despite such growth in management education in Nepal, a large number of Nepali students are still going abroad for management education. While that shows the growing demand for the higher education in management science, it has lured a number of foreign institutions to set up their campuses in Nepal or forge partnerships with Nepali colleges or universities.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Growth</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Saroj Dhakal, Management Faculty at the recently established CG-CEDEMAS Institute of Management (CGCIM), feels MBA has now become a most sought after brand amongst the ones aspiring to make career in financial or managerial fields. This institute is a joint venture between Nepalâ€™s one of the porominent business houses Chaudhary Group and Englandâ€™s Centre for Development Management Studies (CEDEMAS).</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Colleges offering MBA, EMBA or both degrees</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 424px; height: 987px;">
	<tbody>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">S. No.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Name of College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Affiliation</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">2.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Ace Institute of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Apex College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">National Open College (NOC)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">5.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Uniglobe College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University-Faculty of Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">7.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">8.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu Don Bosco College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">9.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Novel Academy</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">10.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidency College Of Management Sciences</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">11.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Zenith International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kantipur Hotel Management &amp; Interior Design College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">13.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">DAV College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">14.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Topper Management College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">15.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">White House Graduate School of Management</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">16.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Campion Kathmandu College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">17.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Birganj Public College, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Maharaja Agrasen College of Management, Birgunj</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">19.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Management Campus, Biratnagar</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">20.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Bebasthapan (Sang) College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">21.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">King's College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">22.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Presidential Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nova International College</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International American University (USA)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">24.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Lord Buddha Education Foundation (LBEF)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Sikkim Manipal University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">25.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">International Center for Academic College of Distance Education &amp; Online Studies(ICA)</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">26.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Nepal Information Technology</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Indira Gandhi National Open University (IGNOU) (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">27.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Institute of Banking &amp; Management Studies</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Bharathiar University (India)</span></div>
			</td>
		</tr>
		<tr>
			<td width="43">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">28.</span></div>
			</td>
			<td width="293">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">KFA Business School</span></div>
			</td>
			<td width="295">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Vinayaka Missions University (India)</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Apart from the banking and financial system, the demand for professional managers is equally strong in other sectors like tourism and hospitality, energy, agriculture, public sector and others.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As the reasons for growing attraction and development of management education Dr Bijay KC lists development in infrastructure over one-and-a-half decades, change in the trade and occupational patterns in Nepal, growth in media, information technology and development of financial sector, among others. MBA and EMBA graduates are more in demand in the private sector than in the government. KC feels that globalisation and liberalisation have spurted the demand for quality managers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Prof Dr Geeta Pradhan, Dean at Faculty of Management Studies at Pokhara University, says â€œThe growth of banks and corporate houses has definitely added attraction to management studies in the country. Similarly, MBA teaching methods has several in-built practical approaches with internships, project works and case studies.â€ She thinks such approach of teaching-learning methodology produces graduates that are competitive in the work environment and turn out to be capable managers. She added, â€œManagers are required in every field â€“ hospitals to corporate houses. This has created the demand for management graduates.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, Prof Dr Dev Raj Adhikari, Head, Central Department of Management, Tribhuvan University, says that the current growth is not of the actual business schools but in the business studies. He gives credit for this to leading four universities for the growth. He says, the number of students and resource persons is growing along with the demand for competitive human resources in the market that is also growing. Adhikari says, â€œManagement education has improved in terms of both quality and quantity.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<strong><span style="font-size: 14px;">Student Psyche</span></strong></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">MBA students are often tagged as job creators in foreign universities for their attitude summarised as: â€œWe donâ€™t seek job. We create jobs.â€ However, that attitude is not so common among Nepali students. Pradhan says, â€œStudents are not sufficiently eager and positive towards setting up their own business. When I encourage my students about coming up with such ideas, I donâ€™t see enthusiasm in them. I think they are quite lazy. Working in a bank is considered prestigious while setting up a farm by an educated person is not given respect in our society.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says, â€œMore than 95 per cent students are job seekers.â€ He says it is engraved in our culture to search for jobs rather than create one by taking risk of being an entrepreneur. However, he shares some examples of his students who are willing to take up an entrepreneurâ€™s career. â€œSome MBA graduates have established their own cooperatives and finance companies, which is quite positive.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dr Subas KC, Dean of KUSOM, says that most of the students in his colleges are from well-off families and they prefer easy desk jobs in banks rather than hard work, of setting up companies and being an entrepreneur.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Social psyche, parentâ€™s expectation, socialisation and schooling are blamed for this mentality of job seekers rather than job creators. In fact, MBA courses are not designed to produce graduates who seek jobs but it is designed to produce managers and entrepreneurs. Risk taking attitude is said to be missing among students and aspiring entrepreneurs.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dhakal however points out that the level of risks to be shouldered in our society is higher than in other comparable countries including in the immediate neighbourhood. Lack of security, extortions and unfavourable investment environment are driving away graduates from setting up their own business, he argues. Julie Peters, Project Director CGCIM, says her college provides incentive to students with best ideas to set up their own business at the end of their studies to promote entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Curriculum</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management course covers a wide range of disciplines with focus on marketing, human resource management, organisational behaviour, and strategic management among others. Apart from these, mathematics, psychology, sociology, philosophy and economics are taught in the classrooms to the graduate students. These courses expect students to understand and manage the literally all operational aspects of the organisation. Management studies enhance the managerial skills by sharing of ideas, healthy discussions and project works, say experts.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari, who is also the President of Nepalese Academy of Management, said MBA course is designed to understand the changing perspectives in the business. MBA graduates are expected to understand new definitions and programmes, think strategically, make decisions and have a practical approach to any problem. The aspects make them expert managers and business leaders.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Number of Management Colleges</span></div>
<table border="2" cellpadding="0" cellspacing="0" style="width: 401px; height: 246px;">
	<tbody>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Courses</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Tribhuvan University</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Pokhara University</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Purbanchal University</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">Kathmandu University</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">533</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">BBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">18</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">35</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">23</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">4</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBS</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">45 in operation out of 90</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">MBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">6</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">12</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
		<tr>
			<td valign="top" width="69">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">EMBA</span></div>
			</td>
			<td valign="top" width="156">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">NA</span></div>
			</td>
			<td valign="top" width="124">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
			<td valign="top" width="136">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">3</span></div>
			</td>
			<td valign="top" width="143">
				<div style="text-align: justify;">
					<span style="font-size: 14px;">1</span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari shared, â€œGeneral Motors of USA has devised three â€˜Tsâ€™ concept for its human resources - technology, talent and transformation. We need MBA graduates for such transformations.â€ He adds that MBA course in Nepal is devised to produce capable leaders who can understand and cope up with new advancements and plan, organise and execute accordingly. â€œMBA is not introduced only for the sake of MBA. It was introduced to support the emerging economy by developing such human resources that can meet the requirements either through a job or entrepreneurship,â€ he said talking about TUâ€™s management programmes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Scholars accept that the masterâ€™s level curricula on management of Nepali universities are that of the international standards. However, they often question about the way it is delivered to students. Dr Bijay KC said, â€œThe system we follow is more or less the same as in foreign universities. Many universities have accepted the credits our students have achieved primarily due to the courses we teach. Semester system, alphabetical grading evaluation, standard text books used here are similar to western system. In some cases, students may have to take some test/examination which, I think, is normal practice everywhere for any&nbsp; foreign student.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors think that the main gap is in the teaching-learning methods. KC explains, universities have the same curricula that cover human resource, finance, marketing, organisational behavior, economics, quantitative techniques, strategy, environment and management information system with more or less similar contents.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari and KC share the similar view that most important is the treatment of the course and its delivery in the classroom, the quality of faculty, the pedagogy used and practical exposure that the students gain during the course.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Teaching-Learning Methodology</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The classes of TU MBS are mostly based on the lecture method. However, the colleges under other universities have adopted more practical and participatory methodology to teach in MBA level. These days, traditional teaching-learning method based on lecture is deemed obsolete for any discipline. For management studies, active participation of students in group work and more practical approach, along with observatory methods are considered appropriate. In an MBA class, teacher and students challenge statements, attack and defend ideas. Inclusion of other approaches plays an important role in the learning process.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Adhikari says the central department of management is forced to adopt the traditional method of lecture as they have a huge number of students â€“ around 200 in a single class. He says this simply makes impossible to adopt the other style such as group discussions, presentations, case studies, etc.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Peters of CGCIM opines, â€œPurely academic approach will not work. The MBA course must take an approach of looking at company case study and the actual issues in that company and how they address those issues. Theories may come later. Theory is something managers already know from their experience but they donâ€™t realise that they know.â€ Dhakal from the same institute argues that for a class to be participatory and active, students too must have some kind of exposure and experience. â€œBut Nepali students are straight out of the undergraduate colleges, so the teaching methodology is confined to theories alone,â€ he said. Internationally, students can enrol into MBA course only after practical experience of a couple of years as a manager.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">An appropriately designed MBA curriculum demands for more participation, personality development and attitude development. So, the classroom must be synchronised accordingly. After graduation, students enter the job market. So, the colleges must be producing graduates who can face the real working environment. Adhikari believes, â€œTeaching-learning methodology plays a pivotal role in bridging the gap between classroom and workplace. Such environment in the class must be ensured so that they can adapt to the work environment the very next day.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the business schools have tried to revolutionise the classrooms. They have introduced the concept of dual faculty in a class. Along with an academician, a professional contributor takes a class. Academician deals with the theory while the professional contributor shares his supportive working and real-life experiences. Such professional may be a Chief Executive Officer or Human Resource Manager of a bank or a corporate house.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Most graduate schools of management implement project works, participatory techniques, encourage team work, case studies and field visits and some invite visiting faculties from foreign universities. Similarly, games, participatory techniques and decision making opportunities are frequently practised in graduate schools.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">International Recognition</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The validity of degrees from Nepali universities is often questioned in foreign universities, mostly in the US and Europe. The courses adopted here, teaching method, curriculum, assessment criteria are mostly blamed for the failure of giving equal recognition to our degrees. Nepali masterâ€™s degree holders from any university mandatorily have to take up some kind of foundation course or additional credit hours in those foreign universities for them to get recognised as MBAs for employment and further degrees. Moreover, the competency of our colleges and students with the international counterparts can also be often questionable.&nbsp;Experts believe our universities and management institutes cannot be compared to the quality being offered by some universities and institutes in India and the US. However, we have been successful to devise the curriculum that is at par with the international quality for MBA as well as BBA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case of MBA, a student requires to meet certain requirements in USA to get enrolled. Unlike here, a student must have two years of work experience and must appear in the GMAT test before admission. Adhikari points these as some of the reasons why our degrees are not directly recognised internationally. However he claimed, â€œAlthough there is no direct recognition, our education is not derecognised anywhere in the world. After meeting some of their criteria like additional courses and credit hours, our degrees are largely recognised.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">One of the reasons Nepali young generation prefers foreign or international degrees to pursue MBA is the issue of recognition of our degrees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Foreign Affiliation</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A number of Nepali institutes and colleges have now presented an option to acquire foreign degrees while being within the country. However, most of these colleges are centred in the capital city Kathmandu only. It is not only the Nepali colleges that are willing to bring in foreign affiliations, but also foreign universities are interested to have Nepali affiliates. The reason is the attraction of Nepali students for international degrees and thus the potential market for those colleges.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">CGCIM is the latest institute to offer post-graduate diploma affiliated to Centre for Development Management Studies (CEDEMAS), UK. Dhakal of CGCIM says that the institute was established with the idea to provide teaching in Nepal by foreigner professors. He said, â€œThis is the concept of providing a world-class degree from Nepal. Instead of students going abroad, professors come here to teach and the cost is relatively very small for the students.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Similarly, colleges like KFA, Institute of Banking &amp; Management Studies, Lord Buddha Education Foundation and some other are affiliated with Indian universities. Kingâ€™s College, Presidential Business School, Nova International College are affiliated to International American University, USA.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the quality of the affiliated university is also questioned by professionals in management and business studies. KC of KUSOM said, â€œUniversities that Nepali colleges are affiliated to are not much heard-of. Such co-operations will not contribute much to the development of management studies. It will be really praiseworthy if colleges can bring in affiliations from top universities like Harvard, Oxford or any other well-known universities or even Indian Institute of Management.â€</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although the trend of getting affiliation with foreign university is increasing, the government universities are not feeling any threat. Adhikari of TU said, â€œNepali universities are in the forefront on the basis of competition and curriculum. We have much better course design that is customised with Nepali culture, system, economy, situation, need and expectation of the market.â€ Most of the foreign affiliations are based on the distance learning mode.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Sponsorship</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Funding students for business and management studies in Nepali college is not much practised by corporate houses. However, some corporate houses have financed a few students in some leading colleges. Apart from that there is also a trend to send the employees of the corporates to Indian colleges and institutes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Professors do not think that corporate houses are sending students abroad due to the crisis of trust on Nepali colleges. They believe it must be because of some extraordinary qualities that they cannot find in Nepali colleges but see in foreign ones.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However Adhikari says, â€œCorporate houses are not investing in HR for academic programmes. I have not found a single student sponsored by corporate houses.â€ Even in EMBA, which is meant for working managers, students are studying under self-financing. According to Adhikari, in other countries, EMBA students are compulsorily sponsored by employing organisations.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">EMBA</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is the course designed for working professionals who want to improve their leadership and management skills. It is relatively a new course introduced in Nepal. This programme is said to help managers learn, grow, and change in their career while working. It is the only post-experience management degree as the MBA here does not need any prior work experience.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">EMBA is a two years course based on semester or trimester system. The course aims to enrich both theoretical and practical knowledge. The course requires being changed and updated to keep up with pace of the evolution in the market. Students of EMBA believe it helps to tackle the challenges they face in managerial profession that keep on arising at work. The course content of EMBA is quite similar to that of MBA with more priority on the practical aspects. EMBA colleges adopt case study, participative method, group discussions, presentations, field visits, project works as their common methods of teaching-learning, supported by lectures.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Three universities â€“ KU, Purbanchal and Pokhara University â€“ are offering EMBA courses. KU has it in its own campus â€“ KUSOM while Pokhara is offering it in its central campus as well as affiliated colleges and PU is providing it through its affiliates. Assessment criteria applied in these universities is a mixed bag of practical and theoretical written exams. Moreover, most colleges have implemented the overall performance evaluation for the grading system that is usually alphabetical.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">Career Prospects and Recruitments</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Management and business graduates opt for career in the financial sector which is at present the major job market in Nepalâ€™s formal sector. Students do not much prioritise other sectors than the financial institutions as their career area. Only a few students take the path of self-employment and job-creation through entrepreneurship.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Joint venture companies are also becoming the target areas of MBA graduates for jobs. Meanwhile it is expected that the service sector, which is growing fast, will certainly attract management graduates. KUSOM has its own employment cell to coordinate job placements. Ace Institute of Management too has similar kind of on-campus and off-campus placement mechanism. Dr Subas KC said that students used to be hired by well-known corporate houses in bulk when KUSOM was the only college to offer MBA. However, bulk hiring is not much practised now, companies still reach the college searching for suitable MBAs. Apart from students searching for jobs, companies too come searching for their probable employees.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Although it is not so difficult to secure a job after MBA, the facilities, working environment and remuneration are quite low compared to their qualification. Dr Geeta Pradhan accepts that management graduates are not getting the pay in Nepal that they deserve.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In our market, performance-based pay is less in practice. The flat industrial pay scale is common. Although pay is determined by several factors like economy, industrialisation, market, countryâ€™s status, personâ€™s productivity and efficiency, it is believed that most appropriate pay system is performance-based, that is what exactly is missing here in Nepal.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;">The Future</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Nepal being a growing economy, it is certain that the need for professional managers will grow in almost every sector. With the creation of job and growth of market, management graduates will be demanded by both private and public sectors. There are sectors like hydropower might just gradually open up as attractive jobs for new graduates The job market that is confined to the banking sector is certain to expand with more joint ventures coming, growth of service sector, more industries and growth of market.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That will lead to more demand for management graduates and management schools that produce top-notch managers. The collegesâ€™ changing trend shows that they will be able to manage to cater to the demands of the market and time. For that, the teaching-learning method has to change for the better. Similarly, the research practice that is missing among the professors must be developed. Rather than studying just what is happening in the outside world, management schools must be capable to address the evolving Nepali market realities. Without researches by the universities and professors that is almost impossible to do.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Moreover, MBA colleges are blamed for utter commercialisation. To revolutionise the management studies, they require to rise above the worries of profit and loss and dedicate themselves to bring in professional management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Experts opine that the concept of business school in true sense of the term is yet to come to Nepal. Business schools are more autonomous with definite vision, mission, and goals and operate accordingly. Adhikari says that such schools have distinct identity and existence. â€œTU is planning to develop the concept of business school. The only question is the extent of autonomy.â€ He thinks that MBA colleges are coming just for the sake of money without caring to meet their social responsibilities. The courses and academic studies must address the current needs of the country. â€œBusiness schools just with the aim to get students for the sake of business will not sustain in the future. They must take ahead business education with national and international perspectives in mind and by charting out clear vision, mission and leadership,â€&nbsp; he suggests.</span></div>
<h3 style="color: blue;">
	<span style="font-size: 14px;"><br />
	</span></h3>
<h3 style="color: blue;">
	<span style="font-size: 14px;">* Alumni Speak *</span></h3>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sujan Raja Shrestha received an MBA degree from Kathmandu University School of Management (KUSOM) in 2000. Currently a Management Consultant with Smart Food &amp; Snacks Pvt Ltd, he also manages his own business ventures â€“ Sovereign Education Network and Barahi Eco Farming Company.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Having started his professional career as an employee in various companies, he has come full circle in his decade-long professional journey. He says, â€œI have learned much and had the opportunity to implement management skills over the years.â€ Shrestha takes pride in having reached the companies he worked with (Himalayan Snacks, Smart Food etc), to new heights. He emphasises that a corporate entityâ€™s success is the result of team work to a large extent. And almost in the same breath, he doesnâ€™t forget to remind, â€œTo manage and mobilise a team well enough to obtain maximum output, we require excellent management skills.â€ He adds that these skills can be learnt and it certainly helps having a management education.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Shrestha believes that one must not pursue management education, particularly an MBA degree, only to find better employment or to get a promotion. â€œThe knowledge a student gathers while studying management builds his/her analytical skills better than ever before and pays dividends over a long period of time,â€ he explains. He opines that a competent management education helps students make more informed decisions with a greater probability of success.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A firm believer of blending theory and practice in management education, he expresses confidence that having successfully completed their MBA programme, the students can choose any business or profession they have their heart for and want to excel at. Shrestha hopes that most management graduates will ultimately turn employers rather than remaining employees for life. â€œI look forward to the current crop of MBAs to turn entrepreneur after getting a few years experience so that they can create jobs for others and become more productive and constructive,â€ he concludes on an &nbsp;optimistic note.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Subodh Sharma Sigdel completed his MBA (Finance) from Nepal Commerce Campus, Tribhuvan University in 2000. He also attained an additional degree with an MSc in International Banking and Finance (IBF) from University of Greenwich, London in 2010. He is currently the Chief Executive Officer of CDS and Clearing Limited.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Sigdel was in the early phase of his banking career when he completed his MBA in 2000. The qualification helped him become a good leader and taught him skills related to conflict management, team motivation, plans and programmes preparation, effective communication and overall managerial acumen. After working in the banking and financial sector for more than nine years, he realised the need to get another degree that specialised in his working arena. Hence, he opted to obtain a degree in International Banking and Finance from the University of Greenwich in London. â€œThis degree has given me an excellent opportunity towards shaping my career,â€ he observes. Meanwhile, Sigdel also ran a trading institute where he trained commodity and stock investors about investing money in the market. He has been recently appointed the CEO of the first ever CDS company of Nepal, CDS and Clearing Limited which is an integral part of the capital market. â€œStudying subjects like International Capital Market and Financial Trading Techniques immensely helped me in bagging this coveted position. Besides, the IBF degree helped me with my policy making role and supervisory activities,â€ he reiterates. He credits his MBA (Finance) degree for building his career while being grateful to the MSc (IBF) qualification for shaping his career in a better direction.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€œManagement education has become extremely important for students aspiring for a career in management,â€ Sigdel asserts. He suggests that students should pursue a management degree because the market holds enormous opportunities for trained professionals. He adds that management career, today, is not limited to the banking and financial sector only. â€œCareer choices for management graduates are widening these days with new companies like Central Depository System, Commodity Exchanges, Credit Rating Agency, Mutual Funds and the concept of working as Commodity and Stock Trading Members have emerged in our economy,â€ he points out. Since these companies demand huge workforce, Sigdel advises students to attain relevant management education and fashion successful managerial careers for themselves.</span></div>',
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			'created' => '2011-10-11',
			'modified' => '2012-08-23',
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			'description' => 'During past one decade or so, one of the areas that witnessed a exponential growth in Nepal is the Management Education. Along with the growing demand of duly.......',
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	(int) 1 => array(
		'Article' => array(
			'id' => '472',
			'article_category_id' => '40',
			'title' => ''We Are Compelled ToStudy Foreign Cases' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Prof Dr Geeta Pradhan</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Dean, Faculty of Management Studies</span><span style="font-size: 14px;"><img align="right" alt="" border="1" height="215" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/geeta pradhan(1).jpg" style="width: 166px; height: 215px;" vspace="10" width="166" /></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Pokhara University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR (Human Resource) Management and MBA in Management Information System. These courses produce expertise that is required for any corporate house or enterprise. Other course that I want to introduce is a Masters programme in Public Policy. I think the current education does not well equip those going for government and civil services.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There is a remarkable growth in management colleges and students in Nepal. When I joined Pokhara University, there were very few students. In 2008, there was just one student in MBA. In Pokhara, there was a belief that MBA will not succeed. With the help of some officials from the university, I visited banks, institutes, chambers of commerce for searching students. They all assured to cooperate. Then, we received applications from 80 candidates while we had only 50 seats. At that time in BBA, the dropout rate was high. Admission was announced thrice for one BBA session. The growth of banking sector has also created demand for capable managers. Management studies with practical approach of teaching like internships, project works have helped graduates to contribute competitively in the organisations. Hence, there is growth in attraction to these courses and management schools.This course produces capable human resource and managers who are required in every field â€“ hospitals to corporate houses. Emerging financial institutions and corporate houses have also increased the demand for management graduates.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sending students to study in foreign colleges. Does that mean they donâ€™t trust our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is not that our education is bad but we have not achieved their level, which we can achieve easily. I blame our attitude to ignore rules, regulations and the system. Despite having excellent course design, students are not able to perform well. If they can work accordingly, they will be capable, honest and manage their time efficiently.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most MBA graduates seem to be targeting a job in banks. Are the MBA courses designed for that only? Do you see any&nbsp; misconception in students?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">That is a misconception. The MBA is for producing capable managers and entrepreneurs. Our society does not respect all kinds of works. Table work is always considered the best job but running a farm is taken in a different way. Bank jobs have become a symbol of prestige now. Very few students think of setting up their own businesses. I encourage students to find out ways to use hot natural springs around Pokhara and prepare proposals but I think students do not have positive attitude for such creative works.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Case study is what foreign universities opt for teaching. It is said that we donâ€™t have much cases within our country to study. Are we forced to study only the foreign cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">In case studies, frankly speaking, the trend of case writing is missing in Nepal. In my university too, we employ the case study method, which is a foreign concept. Good cases from Nepal are not being written. There are some professors who write them but still good cases are missing. We often encourage writing them but professors for some reasons are not willing to write them. I think they feel lazy. I feel we donâ€™t have a tendency to be competent and do something different. So, we are bound to study foreign cases though we have enough cases and examples in our own surroundings.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is our curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The curriculum suits the typical business environment of Nepal. However, the dialogue between academia and business is missing. Business is heading in one direction while business schools are in another.&nbsp;I often tell business houses to exchange resources but I donâ€™t know why it is not been possible to find a working chord.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Curriculum and teaching-learning methodology of Nepali colleges and universities are&nbsp;said to be traditional. What is your university doing to update your curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is true that we have traditional method of teaching and learning. For bringing some changes, students must have exposure and the teachers too need to have some inputs. They teach only what they have studied. That makes it quite difficult. When visiting faculties are selected I prefer MBA graduates from America. They have exposure to different methodologies and it is definitely different than teachers who got education here. We are revising the curriculum even of BBA and that has been approved by the subject committee. We have also included the course of business ethics. We continuously go on revising the curriculum.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the course bridge the gap between real life work place and the lessons taught in business schools?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If there were more teachers who studied in foreign universities or from abroad, bridging the gap between classroom and the real world would have been much easier. There are many constraints. When we ask students to go for some field visits they ask the university to bear the cost. That is a hindrance. To some extent, students also need to bear these expenses when it is useful for their studies and career. I think many do not understand the concept of university. In university, students are required to manage some expenses for themselves. What they do and what they learn in classroom is reflected in the real working environment.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Nepali universities are said to have weak management and the basics like exams and results are not conducted on time. What is the main problem?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The management is not a total failure but it is also true that it is quite weak. The management is unable to enforce the rule upon students and their unrealistic demands are not suppressed. In some cases, colleges themselves are involved in encouraging students for demonstrations to change the date of scheduled exams. They reason, the course is incomplete. I think infiltration of political elements in colleges is guiding it. But we have tried to bring the session back on track by cancelling vacations. The situation is gradually improving because we are also taking firm decisions. I think one of the reasons behind such practice is, most of the time students are enrolled without proper selection due to various reasons.</span></div>',
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			'created' => '2011-10-11',
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			'keywords' => '',
			'description' => 'New courses have been introduced in Nepal like EMBA. In MBA too, we have MBA in Finance, MBA in Global Business and we have planned for MBA in HR....',
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		'Article' => array(
			'id' => '471',
			'article_category_id' => '40',
			'title' => ''MBA Has Become Competitive Now' (September 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><img align="right" alt="" border="2" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dev raj adhikari.jpg" style="width: 190px; height: 245px;" vspace="10" /></span><span style="font-size: 14px;"><b>Prof Dr Dev Raj Adhikari</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Head, Central Department of Management</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Tribhuvan University</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU) - the oldest one in the country - are contributing to the growth of management studies. Along with the growth in number of students and faculty, there is also the growth in demand for the products in the market. Market is also growing. Currently, we can see quantitative growth but there is impressive qualitative growth too. Recently, a report of Ministry of Education has revealed that the number of students going for foreign education has dropped. Management education has grown both qualitatively and quantitatively.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the emerging trends in management studies?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are talking about globalisation today. That automatically reflects in our curriculum. Our curriculum cannot always be taught in the same old traditional methods because our students have to compete in the international market. The demand is growing for&nbsp;change and advancement in the management studiesâ€™ curriculum. The teaching-learning model also needs to be reformed. Some schools have adopted really good methodology but in our MBS, we have not been able to achieve the global standards due to a large number of students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How have the management schools tried to change the traditional practices?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Some of the institutes are practising methods like project works, case studies and participatory techniques in classrooms. They are encouraging team work and group work. Students are often taken for industrial tours and field visits. Professionals and entrepreneurs are giving lectures while visiting faculties are being sourced from foreign universities. These are now being practised in Nepali colleges. They are trying their best because they are getting money and need to satisfy the parents and students. I have seen bank CEOs addressing the classes. Some institutes even have the system of dual faculties in which one is academician while the other may be a professional. Academician teaches theory while the professional shares his real work-life experiences. He may be the HR director of a certain bank or even a CEO. Now, MBA has become competitive. Market will judge in the future if one can or cannot deliver. Teaching-learning method is not that much traditional as in the past. In MBS, traditional method is also being used. The most popular method in the world is the lecture method. When the classroom is small and focus is on a particular group, we can go for case studies, game theories, project works, participatory techniques, create decision making opportunities. But in a large class, the same is not possible. It is being traditional because we donâ€™t have environment to use new tools and pedagogy. Some classes are traditionally run but the cases have changed a lot compared to the past. In the coming ten years, there will be a lot of changes.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our competency compared to the level of regional and international universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is very difficult to say what exactly is our competency compared to other universities, especially those in India. Currently, in the growth of Indian management education, quality is especially seen in state universities and management institutes like IIM, Ahmedabad. We have not reached that level of quality in education. Here, Pokhara, Kathmandu and Purbanchal universities are leading in MBA. They have changed with time and have created the course well with a lot of planning but so far the implementation is missing. We are lagging behind in regional and international perspectives. But the TU MBS can be easily compared to Indian quality. Curriculum is good and our MBS course can be compared with good universities in India. So, what we can safely say in MBA we still have to do a lot of things because growth in business here does not have the same pace as in India. Our internship level can by no means be compared with theirs. We have also not been able to provide facilities and educational environment that Indian MBA students get. In such a case, we canâ€™t compare with them. Nevertheless, we are trying our best; our universities are trying for something similar.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Are our colleges, courses and degrees internationally recognised?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">TU is recognised worldwide as the largest university of Nepal. Any masterâ€™s degree holder from TU need to do further studies if he wants to pursue further studies in the US. MBS graduates again need to do MBA there. In USA, to do an MBA, one must compulsorily have two years of work experience but it does not apply here. And they must also appear in GMAT. Here one can directly join MBA after bachelorâ€™s degree. So, there is no direct recognition but our education is not derecognised anywhere in the world. Though they donâ€™t give exact equivalence, after completing some credit hours and some courses, our degrees are recognised well.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is our curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We should try to develop professional entrepreneurship as well. It is engraved in our culture that after completion of studies, everyone must do some kind of job. Everyone expects to get a good job. But there are some students who really want to develop as a professional or an entrepreneur. Some of my own students are aiming to create jobs through their entrepreneurship. More than 95 per cent students are job seekers either in national, Indian or international markets. But only a few are willing to develop as a professional or an entrepreneur. Some MBA students have even established their own cooperatives and finance companies.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How does the management course bridge the gap between real life workplace and the lessons taught in classrooms?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We need good teaching-learning method to bridge the gap between classroom and the workplace. The environment in the class must be such as the students can begin working immediately after completing the education and can adapt to the work environment. Similar kind of pedagogy, customisation and workplace-friendly curriculum must be selected. Then, we need the curriculum in accordance to the business expectation. That will bridge the gap between the classroom and the workplace otherwise there will be a difference always. If we can not bridge this gap, organisations will have to invest a lot in training and development of the new recruits from the management stream. So, these days, management colleges are focussing on training for a banking career to MBAs as the banking and finance sector is our major job market. If the gap is to be bridged, we have to make the classroom workplace friendly and design the curriculum accordingly. We have that curriculum but if we also have the similar delivery we can minimise the gap.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If you look at it through competition and curriculum, our local universities are in forefront. If you compare the foreign university curriculum with Nepali counterparts, we have a much better curriculum. Nepali universities are already customised with local environment while Indian university cannot be customised. You have to run according to their curriculum. Our curriculum is customised according to our culture, system, economy, situation, need and expectation. That way our curriculum is excellent and those courses have not proven any threat to us. But that does not mean it is time to stay idle. The way foreign universities are coming, they have changed the teaching-learning method. Concept of dual faculty has been introduced in Indian university affiliated colleges. It is a challenging system. That will challenge us in the future. British, American and Indian universities are willing and are coming to Nepal. However, they are mostly offering distance education, so far. Till date, we have a strong curriculum and we are not facing any threat from universities.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Most of the leadership positions in the private sector banks and corporate houses are being held by MBA graduates from foreign universities. How do you react to this?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Companies must have found some difference in these foreign graduates. They must have certain unique personality and knowledge. But that knowledge, skill, efficiency will be transferred gradually to ours too. This will not be the same forever. In the days to come, Nepali MBA graduates can also do that. It is only a matter of time. It may take a few years or a few decades. India has a long history in management studies and MBA while we have just begun teaching MBA. Such things are not negative. We can learn from them and analyse what we lack and what special they have got. Students must self actualise and they can develop themselves accordingly.</span></div>',
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			'description' => 'The growth you are talking about is the growth of management education. Four universities namely Kathmandu, Pokhara, Purbanchal and Tribhuvan University (TU).....',
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			'article_category_id' => '40',
			'title' => ''Corporate EntitiesKnow The Importanceof Having MBAs' (September 2011)',
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			'summary' => null,
			'content' => '<p>
	<span style="font-size: 14px;"><img align="right" alt="" border="0" height="192" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/dr bijay kc.jpg" style="width: 159px; height: 192px;" vspace="10" width="159" /></span></p>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>Dr Bijay KC</b></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Faculty Prof and Dean</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">South Asian Institute of Management (SAIM)</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think itâ€™s going to shape up in the foreseeable future?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I have been quite satisfied with the way things are. A good number of management schools have come up in recent years because there is a huge demand for management graduates in the job market. However, I must admit that we must adapt ourselves to the fast changing scenario of business education. The schools should also become receptive to the needs of the business enterprises because ultimately itâ€™s they who are going to provide employment to the students graduating from these schools. I also feel that the government should take an initiative to come up with a new university that will specialise in management studies. At the same time, such a university should permit only such schools and colleges that have proven themselves in the field of management education. Another important aspect is that the faculty of business schools must have a say in matters related to examinations and quality control because they best understand the needs of the students.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Is the Nepali business schoolsâ€™ curriculum well prepared to meet the demands created by globalisation? What is SAIMâ€™s curriculum targeted at â€“ producing job seekers or job creators?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We, at SAIM, offer a programme called MBA Global Business in affiliation with Pokhara University which, fundamentally, exposes our students to global management practices. We do have some courses on entrepreneurship which are targeted at developing job creators of the future but a majority of the students prefer to join different sectors as professionals. As for a job creator, an entrepreneur must also have some knowledge on marketing, finance and resource etc. But I do realise that to make our programme more entrepreneurship-oriented, we need to have more courses included in the curriculum by our parent university.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Could you tell us about the teaching methodology at SAIM? Are the students forced to study foreign cases primarily because there is a dearth of home-grown cases?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Yes, we mostly use foreign case studies and I see no harm in using those. These cases are actually very good and a management educationâ€™s basic purpose is to develop the skills of the students. We do have a few good home-grown cases which we use. You must understand here that good case studies are hard to come by and writing them is not an easy job.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Some corporate houses are sponsoring their fresh employees to study in foreign colleges. Do you think there is a lack of trust, on their part, in the quality of our colleges and curriculum?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">I think more than anything else it is to make their employees gain further knowledge and equip them better. If they didnâ€™t have faith in the quality of education we offer, they wouldnâ€™t hire them in the first place. My feeling is that management education is a lifelong asset for the students. Getting an MBA degree does not mean that the students know everything about management. My recommendation to the corporate houses is that after three-four years of work experience, they should look at sending these students for further studies abroad.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">A lot of students are going abroad to pursue management degrees? Why are the local colleges not able to retain them here?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The fact of the matter is that, now-a-days, a lot of Nepali students want to pursue management degrees. Itâ€™s a classic case of demand overwhelming supply as the number of seats available in Nepalâ€™s business schools is not adequate to accommodate all these management degree aspirants. We understand that there is a need for more business schools and more seats. At the same time, we cannot afford to compromise on quality. Among the many business schools operating in Nepal, there are only about four or five of them providing quality education. This limited number of colleges can accommodate around 200 students at best. Itâ€™s but obvious that a lot of students not finding a seat in these colleges will look to go abroad. Besides, some good students may get admission to world renowned business schools like IIM or Harvard, for example. In such cases, we cannot be unfair and ask them to stay back in the country for our own selfish reasons.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How suitable is your curriculum for the typical business environment of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The basic concept of management education is the same around the world. For example, a course on inventory management is same whether in the US or here in Nepal. A lot of cases provide a wider perspective of problems therefore; we look at applying them in the context of Nepal. In some cases, we have to resort to modification to suit the business needs locally.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Why do you think there is tremendous attraction to business studies these days?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">It is because of the job opportunities available to management graduates in recent times. In the last decade-and-a-half or so, corporate entities have realised the importance of having them in their ranks. It has become relatively easier for MBA graduates to start professional careers based on their education. Besides, these graduates have performed and proved themselves at their respective workplaces which have compelled companies to hire suitably qualified management graduates. So, job opportunities coupled with career enhancement prospects have been instrumental in attracting scores of students towards business studies of late.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Do you think MBA graduates from Nepali business schools are paid lower than they deserve?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">As far as remuneration is concerned, it basically differs from company to company. From the companiesâ€™ perspective, if they want to have bright students working for them, they must be prepared to pay handsomely to attract them. What also matters is an individualâ€™s ability, he/she must be prepared to perform and prove his/her worthiness to command better remuneration. Having an MBA does not automatically guarantee an excellent pay. I am sure even if some students may begin their careers by agreeing to work for a package that is less than their expectation levels, they can always prove themselves first and then demand a better pay package.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Tell us the way you go about campus recruitment at SAIM.</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">At the end of the two-year programme, we prepare profiles highlighting academic background and credentials of all students that are passing out and distribute the profiles among the interested companies. A lot of these companies evince interest in particular individuals so we act as a link between the two. Itâ€™s both established companies as well as upcoming ventures that hire our graduates.</span></div>',
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	<span style="font-size: 14px;"><img align="right" alt="" border="1" height="183" hspace="5" src="http://newbusinessage.com/ckfinder/userfiles/Images/pro subash kc.jpg" style="width: 142px; height: 183px;" vspace="5" width="142" /><b>Prof Subas KC</b></span></div>
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	<span style="font-size: 14px;">Faculty and Dean</span></div>
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	<span style="font-size: 14px;">Kathmandu University School of Management (KUSOM)</span></div>
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	<span style="font-size: 14px;">Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post Graduate Diploma in Training and Development from University of Manchester, UK, his areas of specialisations include Human Resource Management/Development, Organisational Behaviour and Organisation Development. He previously worked as the Director of Centre for Management Innovation (CEMI) at Nepal Administrative Staff College and as a Training and Research Officer for the development of cooperatives in the government. In an interview with <i>New Business Age</i>, Professor KC expresses his ideas on the importance of management education in Nepal and recommends better quality to get closer to international standards. Excerpts:</span></div>
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	<strong><span style="font-size: 14px;">What is driving the growth of management schools in Nepal? How do you think management education is going to shape up in the foreseeable future?</span></strong></div>
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	<span style="font-size: 14px;">I think the growth has been pretty good. A number of business schools have opened in recent years as a result of the increasing demand for business education. From the perspective of both demand and supply of business education, it is a very encouraging and healthy development we have here. However, I canâ€™t say the same from a quality perspective. All the business schools in Nepal need to substantially improve their quality levels. We need to be able to supply competitive products in the market particularly because they have to compete with business graduates arriving from western universities.</span></div>
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	<span style="font-size: 14px;">I believe that our society is going through a process whereby it is trying to managerialise itself. What we lacked in the past was a managerial approach to address our issues and problems. However, if you look at the history of economic, social and industrial development of the western societies, you will find that they went through a managerial revolution at some stage or the other. Therefore, we need managerialisation of values, ideas, attitudes and perspectives among others. A manager looks at things differently than a person who is not trained as a manager. Our society and economy are in the process of modernisation so we need to managerialise them accordingly. This is another reason why the demand and value for management graduates have tremendously increased. I only hope that itâ€™s not a passing fad and the demand for MBA graduates will continue to grow. As for managerialisation, the process has already begun and the evidence is for all of us to see but I am not happy with the pace of it. If the existing process accelerates and catches momentum, we will need more professionals and graduates with adequate training in business administration. Therefore, I am confident that the value of MBA education will continue to grow at least in the foreseeable future.</span></div>
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	<strong><span style="font-size: 14px;">What is the competency of business graduates produced in Nepal compared to those from regional and international universities?</span></strong></div>
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	<span style="font-size: 14px;">As I just mentioned, we need to maintain our competitiveness if we want to be part of the globalised economy. When we compare home-grown graduates with the ones who have graduated from western universities or the best universities in India, we are slightly behind in terms of quality. Itâ€™s not necessary that everyone who has a business degree from abroad is better than the graduates produced in Nepal. However, it would be unfair to compare our graduates with the ones from IIM, Harvard or Wharton. On the whole, MBA graduates from good business schools in Nepal are at least at par with business graduates from average or above average universities in India and elsewhere. But the business graduates from mediocre business schools in Nepal are far behind in terms of quality. Though it will take plenty of time, effort, resources and dedication, we at KUSOM want to improve the quality of our graduates to enhance their competitiveness. We are certainly on our way to make our graduates as competitive as possible.</span></div>
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	<strong><span style="font-size: 14px;">How do you analyse the motives of students behind pursuing management education now-a-days?</span></strong></div>
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	<span style="font-size: 14px;">Itâ€™s definitely very good from the perspective of business schools. However, itâ€™s not too difficult to explain this explosion of interest in business education. There are a couple of reasons for the strong desire on part of the students to pursue business education, particularly MBA. You must understand that MBA is a global brand. With increasing exposure to the rest of the world, parents as well as students have become aware of this brand and its value. The brand value of MBA was always there worldwide but it arrived slightly late in our part of the world and it has now caught on. An MBA programme is a package which prepares its graduates for taking on diverse and competent roles and it gives them an edge over other education. This ultimately helps them put their best foot forward in the job market as well as while taking over family businesses or turning entrepreneurs.</span></div>
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	<strong><span style="font-size: 14px;">The teaching-learning methodology is often criticised for being traditional. How has KUSOM tried to change this traditional practice?</span></strong></div>
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	<span style="font-size: 14px;">Without talking about the pedagogy of education, we cannot talk about MBA. In fact, worldwide, it is an educational process where you would find different methodological approaches compared to other disciplines. We are trying to follow different approaches to train and educate our MBA students. We follow case-based methods and a lot of times, problem-based method of teaching. We give students problem-like situations, either real-life or imaginary problems, and we ask them to first analyse the problem using theoretical concepts or models and then come up with recommended course of action. We also apply project-based method of learning where students are given real-life problems. They have to reach out to several industries and organisations, interact with the managers, come up with real data, prepare a report and finally make a presentation based on all these. Even in a classroom environment, we create what we call interactive and group-based learning approach. Students are divided into small groups and made to discuss issues and problems among themselves so they learn through and with each other. This cross-breeding of ideas generates new ways of looking at things. We have been the pioneer and leader in using more innovative approaches through these three methods of learning namely problem-based, project-based and interaction-based methods.</span></div>
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	<strong><span style="font-size: 14px;">How do you see the current trend of colleges being affiliated to foreign universities?</span></strong></div>
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	<span style="font-size: 14px;">Itâ€™s a tricky proposition and to be honest with you, I am not happy about the whole idea. The foreign universities that some business schools in Nepal claim to have an affiliation with are not prestigious universities by any means. I would rather like to see business schools establishing some kind of affiliation with Harvard, Kellogg, Wharton, IIM or London Business School. I will be the first one to welcome affiliations with these trusted names because it would help us raise the quality of education here. We at KUSOM, too, will be under pressure to raise our level of competency. If we are not able to bring in prestigious universities, then probably it makes more sense to pool our resources together and invest it in our own MBA education. Besides, MBA education is locally sensitive to some extent where several courses need to be customised to meet the requirements of local businesses and organisations. For example, itâ€™s no point teaching students the US copyright law. Simply having the tag of a foreign university does not ensure quality education.</span></div>
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	<strong><span style="font-size: 14px;">Do you think the new MBA colleges have been able to address issues that the older MBA colleges lack?</span></strong></div>
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	<span style="font-size: 14px;">Not really. In any sector be it education or otherwise, our culture and psychology is such that rather than innovating, we simply follow the leader or a successful example. KUSOM had the advantages of being the first mover but it did commit its share of mistakes. However, the colleges that followed us failed to learn lessons from our mistakes. In Nepal, we donâ€™t have this culture or psychology of critiquing that brings forth positive evaluation of others. I would be happy if the business schools in Nepal learn from each other as far as successes are concerned. And of course, it would be great if they could also learn from each otherâ€™s mistakes and donâ€™t repeat them. It would go a long way towards enhancing the quality of management education in Nepal.</span></div>
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	<strong><span style="font-size: 14px;">Most MBAs target a job in a bank. Is that only what the MBA course is designed for? Do you see any misconception among students in this regard?</span></strong></div>
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	<span style="font-size: 14px;">To be honest, we donâ€™t advise or encourage students to build their careers in the banking sector <i>per se</i> but the reality is that almost two-third of our students end up working for different banks. MBA course is not designed to develop people for the banking sector only. However, the fact is that banking is among the fastest growing sectors and 90 per cent of the students, while interviewed for intake, say that they want to join a bank after graduating. Another reason is that the banking sector has some very iconic figures and a lot of students seem to have their role models and corporate leaders associated with this industry. Compensation package in banks are more attractive compared to other sectors which is another factor. Besides, a lot of our students come from well-to-do families so they want to work in banks for reasons of convenience. I am sorry to say this but it is a wrong career model for MBA graduates.</span></div>
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	<span style="font-size: 14px;">On our part, we are consciously orienting our students to think in terms of careers outside the banking sector. Our emphasis is on entrepreneurship and we want our MBA graduates to become job-givers rather than become job-seekers. A majority of our students joining banks is actually alarming for us. We donâ€™t want to attach our MBA programme with banking career only because that will be suicidal for us. We are working to make sure that our students diversify their career choices.</span></div>
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	<strong><span style="font-size: 14px;">Tell us the way you go about campus&nbsp; recruitment at KUSOM.</span></strong></div>
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	<span style="font-size: 14px;">We have an excellent track record on recruitment as our graduates are readily absorbed in the job market. And, some of them land a job even before they complete their programme. All our graduates so far have found employment within months of graduating and have gone far in life except for those who donâ€™t want to work for others. There are some graduates who either turn entrepreneurs or join their family businesses. We have a unit here called â€˜PlaCeâ€™ (Placement Cell) supervised by an Assistant Professor and supported by a couple of alumni in the team. In this context, we are organising a job fair on September 2 for which we have sent out invitations to about two dozen companies. This job fair will create a platform for employers and the potential employees. Also, in the last term of the programme, we train our students in job search. We have recently reorganised our placement cell. Now, people associated with it have come up with an excellent plan. They maintain a database of our graduates and some of the industries which have openings for fresh MBAs. One aspect that is missing but I would like to add to our placement efforts is appointment of a professional counsellor. We do job counselling to the extent we can but it is a specialised area so we hope to have a trained job counsellor or psychologist who can do a psychometric analysis of the studentsâ€™ career potential and advice them accordingly.</span></div>',
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			'description' => 'Professor Subas KC is a faculty Dean at Kathmandu University School of Management (KUSOM). An MBAC from Tribhuvan University and with a Post........',
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		'Article' => array(
			'id' => '428',
			'article_category_id' => '40',
			'title' => 'Economic Policy Deflections (august 2011)',
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			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<strong><span style="font-size: 14px;"><i><img align="left" alt="economic" border="1" height="316" hspace="10" src="http://newbusinessage.com/ckfinder/userfiles/Images/cover(1).jpg" style="width: 315px; height: 316px;margin:10px;padding:10px;" vspace="10" width="315" />By Achyut Wagle</i></span></strong></div>
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	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">A</span><span style="letter-spacing: -0.05pt;">t present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is veering more towards the replay of 19th century model of state-controlled, putatively self-sufficient â€˜nationalistâ€™ and thus effectively an isolationist paradigm. The policy shift seems to have completed a full-circle from the campaign of self-sufficiency, trumpeting of fulfilling basic needs, then open-market-oriented liberal policies to the present one marred with confusion but decidedly intended to execute state-controlled economy. </span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Apparently, as elsewhere, the vicissitudes in the Nepali economic policy has been analogues to the nature of the political dispensation the country adopted in different points in history. The externalities too have their share of influence in shaping these policies. Such an influence is surely growing with the changing world order, shifting of epicentres of economic activities and, of course, with dramatically increased communication and transportation connectivities. </span></span></div>
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	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Vicissitudes</span></span></strong></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal presented its first national budget in 1952. Until the fall of Rana oligarchy in 1951, Nepal remained primarily a vassal state. Any economic policy under a 104-year long Rana rule used to be based on the whims of the ruler and that too, related only to the land tax and management of major temple trusts or â€˜Guthisâ€™. Back then, almost cent per cent people relied on agriculture of subsistence nature. State hardly spent for developing infrastructure, public delivery and services systems. The fall of Rana rule and dawn of democracy in 1951 February definitely heralded a new era both politically as well as economically. </span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first budget had three prime policy focuses â€“ expansion of education, promotion of co-operative like structures at the village level to increase agricultural productivity and monetising the economy to the extent possible. This also welcomed the American aid in the country thus far remained largely closed, except for British and Indian diplomats, for the outside world.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Those initial policies were fairly realistic to Nepal given the socio-economic realities of that time. But, the political squabbles and power struggles overshadowed the implementation of them for at least a decade to come.&nbsp;However, despite politically a fluid situation, mid 1950s marked as a major milestone â€“ mainly in two respects â€“ in 1955 Nepal Rastra Bank (NRB) was established and in 1956 Nepal adopted its first five-year plan. </span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">One of the major objectives of the NRB was to replace the Indian currency, which was widely circulated in Nepal, by the Nepali currency. Second one was to speed up the process of monetising the economy in place of widely practised barter system in goods and labour.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The first plan focused on transport and communication infrastructures. A substantial allocation was made in developing the administrative structure all across the country. But before the completion of the first five year plan due 1961, political coup dâ€™Ã©tat by the then King changed the whole economic paradigm, development priorities and naturally their outcomes.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Flip-Flops of Panchayat</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The second plan was only for three years by lapsing a year. It was prepared by the National Planning Commission, a Russian style central planning mechanism, which still exists with very little variation.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">From the third five-year plan on, the partyless panchayat system under the direct rule of the King imposed a guided development policy. The economic policies were rather random mix of socialistic and capitalistic overtures. The state heavily invested in setting up state-enterprises of all sorts â€“ manufacturing, services and deliveries. This was an era of â€˜generousâ€™ foreign aid and Nepal was opened to all hues of them, albeit, with caution not to politically destabilise the largely totalitarian panchayat polity. Local panchayats were the political-administrative channels employed to carry out economic and development activities. </span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The seventh five-year plan (1985-90), the last of panchayat era, made two major policy departures. First, the plan categorically pronounced to work towards meeting the basic needs of the people, under the slogan coined as â€˜elevating the peopleâ€™s living to Asian standardsâ€™. And, second, it adopted a ground-breaking policy flexibility of inviting foreign direct investment and improving the performance of the state enterprises as recommended by Structural Adjustment Programme (SAP) piloted by the International Monetary Fund (IMF). During this period, apart from several foreign investments in tourism related industries, two foreign joint-venture banks, Nepal Arab Bank (Nabil) and Nepal Indosuez Bank were established. </span></span></div>
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	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Openness</span></span></strong></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The reinstatement of multi-party democracy in 1990 began an era of economic liberalisation in Nepal too. The political change delayed the eighth plan by two years. But the eighth plan (1992-97) firmly advocated the privatisation of and divestment from the State Owned Enterprises (SOEs) and open market policies across all sectors. Undoubtedly, the forces of globalisation and international trend of reclaimed openness through democratic governance in former USSR and Eastern Europe contributed to these developments. Whatsoever, this is perhaps the â€˜golden eraâ€™ in terms of economic policy formulation and growth in Nepal. During this period, private sector investment was impressive. Airlines, hospitals, educational institutions, banks and manufacturing units were set-up by private investment. Public investment in infrastructures, mainly roads provided firm basis for urban access to villages. The ninth plan was generally continuation of the eighth plan. But the growth spirit was dampened by the armed insurgency initiated by the CPN-Maoist in 1996 February. Amidst fear and uncertainty, the economy dragged on. But the growth path was already truncated before the end of this plan in 2002 due to spread of violence in the country-wide scale, destruction of infrastructure and absence of any substantive private investment. Despite all odds, the GDP growth in the 1990s was about five per cent annual average.</span></span></div>
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	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Poverty Focus</span></span></strong></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The tenth five-year plan was adopted through wider consultations with donor community led by the World Bank and other stakeholders. The whole plan was baptised as Poverty Reduction Strategy Paper (PRSP). True to its name, its focus was on poverty reduction with added dimensions like putting women in the forefront of rural poverty reduction strategies. An interesting policy link was introduced between the structural and legal reforms and the poverty reduction. </span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">At the very beginning of the plan, Nepal Development Forum was organised for the first time in Nepal. As the Maoist insurgency had become widespread, it also tried to look into the links of the factors like poverty, unemployment and social unrest or insurgency. Interestingly, however, the main policy basis adopted in 1992 that emphasised on the free market economy continued till the tenth plan that ended in 2007. One of the highlights of the tenth plan was Financial Sector Reform Programme (FSRP) that aimed to achieve the central bank autonomy and efficiency, reform in public sector banks, Rastriya Banaijya Bank, Nepal Bank Ltd and Agricultural Development Bank. Several other institutional set-ups like Credit Information Bureau, Debt Recovery Tribunal etc were added. Substantive legislative reforms were made, including a composite Bank and Financial Institutions Act 2007 (BAFIA). Reform in the capital market was another important agenda which has only partially achieved.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Some of highly ambitious reform agenda like bringing the financial giants like Employeeâ€™s Provident Fund and Citizen Investment Trust under an effective regulatory and supervisory ambit and establishing an Asset Management Company remained untouched. Despite generally appropriate policy directions in the later years of the tenth plan, the focus on implementation got immensely diluted. Among many other things, the process of privatising SOEs did not go ahead as expected.</span></span></div>
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	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">On the Reverse Gear </span></span></strong></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After signing of Comprehensive Peace Agreement with the Maoists in 2007, the discourse on economic policy has taken a backseat. The Agreement and the election for the Constituent Assembly both established the apparent dominance of the communist forces in Nepali politics. This not only changed but reversed the very orientation of national economic policy. Since then, no five year plan has been formulated. Two interim plans of three-year each were adopted in view of the prolonged political transition.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Contrary to the general expectation that the post-CPA period would create more conducive atmosphere for economy to grow, the economic performance has gone from bad to worse. The policy confusion is at its core. The communist forces, particularly the UCPN- Maoist is oscillating between proletarian dogma of state-controlled, distributive economy and present day global realities that demand openness and interdependence. The partyâ€™s heavy political reliance on its trade unions have made them unruly and major source of industrial disturbances.&nbsp;This has telling adverse effect of spatial nature on manufacturing and exports, new investments and employment generation. In a nutshell, Nepali economy is again going back to the era of â€œeverything done by the state.â€ Recently it has created new state-owned corporations like Hydropower Development Bank. No government policies assertively talk about privatisation and reform. In a bid to balance the international realities and communist indoctrination, the racing horse of growth has turned into a camel.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">For the last couple of years, the Maoist-UML coalition is in power. It has vehemently pushed a three-pillar â€“ government, cooperatives and private sector â€“ concept of economy which has irked and made apprehensive to the private sector regarding its role and treatment from the state. The private sector is unwilling to consider the cooperatives a separate sectors but the subsector of the private. Given nature, scale and GDP contribution, this proposition seems justifiable. But the more left-oriented policy makers have seen cooperatives as the substitute to the â€˜commune styleâ€™ operation of the economy, thus the emphasis. The cooperativesâ€™ contribution to the national GDP is estimated to be meagre 2 to 3 per cent.</span></span></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Of late, the donor community and the potential investors â€“ both foreign and domestic â€“ seem to have lost interest in Nepali economy owing largely to absolute lack of policy predictability, growing apprehension of infringement on private property rights and disturbed industrial peace at the hands of ruling-party hoodlums and even stateâ€™s failure to bring them to&nbsp;justice.</span></span></div>
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	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Future</span></span></strong></div>
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	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal apparently does not stand at a point of immediate course correction so as it could regain the lost trust and re-ignite the growth engine. There are two main reasons for this: first, the communists, particularly the Maoists are still essentially against the concept of giving the private sector a lead role in economy.&nbsp;Not only that, their anti-private sector rhetorics is often repeated in this or that form. Recently, they have announced that â€˜allâ€™ party leaders would pull-out their children from private schools; purely a futile and demonstrative move. Therefore, until, the party recognises the private sector as major player in the economy and reflects the same in both â€“ policies and actions, economy is unlikely to come out of present sluggish pace of growth â€“ 3.5 per cent in the last fiscal year.</span></span></div>
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	<span style="font-size: 14px;"><span style="line-height: 115%;">The second is the complete absence of the economic policy debate in all major political parties. Any economic policy introduced so far by any party or the government is not an outcome of all through meaningful debate from the local to the central bodies in a manner a democratic outfit should ensure for ownership and the implementation of these policies. Only adoption of this practice can bring the economic agenda to the forefront of the national debate and the policy predictability could also be ensured. </span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'At present, Nepal stands at the crossroads, as perhaps never before in its history, in several respects â€“ political, economic, social, structural etc. In particular regard to economic policy, it is.....',
			'sortorder' => '342',
			'image' => null,
			'article_date' => '0000-00-00 00:00:00',
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			'breaking_news' => false,
			'main_news' => false,
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			'user_id' => '0'
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	),
	(int) 6 => array(
		'Article' => array(
			'id' => '427',
			'article_category_id' => '40',
			'title' => 'Sorry State Of SOEs (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14px;"><strong>By Pinaki Roy</strong><br />
	Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government will provide over Rs 1.77 billion to the state-owned enterprises (SOEs) as subsidies in the current financial year while another Rs 1 billion will come in as foreign grant and loan. The subsidies to the SOEs for FYs 2009-10 and 2010-11 stood at Rs 1.54 billion and Rs 1.97 billion, respectively. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Most SOEs in Nepal are in loss for a long time now. Even the ones that are making profits are because of their monopolistic nature of business. However, itâ€™s inevitable that they too stand to come under pressure once competition intensifies. For example, Nepal Telecommunications Corporation (NTC) is being increasingly challenged by Ncell, a leading mobile telephony brand in Nepal. Most SOEs that are registering mounting losses year after year owe it mainly to political interference and corruption within these public corporations. The high profile Nepal Electricity Authority (NEA), Nepal Oil Corporation (NOC) and Nepal Airlines Corporation (NAC) are among the notable SOEs that have been making losses for as long as one can remember. Suresh Kumar Regmi, Under Secretary at Corporation Coordination and Privatisation Division of the Ministry of Finance (MoF) says, â€œThe corporations must try to become profit making entities on their own instead of expecting help from the government all the time.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Keeping these SOEs alive and kicking essentially means that the state has to dig deeper into its coffers to provide for them. The same money could have been invested otherwise on development. Among the most glaring failures are those of NEA and NOC that have miserably failed to adjust prices in accordance with evolving market dynamics. NEA sells electricity to its consumers at Rs 6.57 per unit as against its cost of Rs 8.97 per unit resulting in a loss of Rs 2.40 per unit. Its accumulated loss of around Rs 19.47 billion exceeds several folds to its total asset value. Similarly, NOC is under Rs 15 billion deficit currently due to heavy losses on petrol, diesel, kerosene and liquefied petroleum gas (LPG) prices. To make matters worse, it is plagued with corruption, political interference and poor governance. The government has no choice but to bailout these SOEs year after year because electricity and fuel are basic services that people of this country cannot be expected to live without. </span></div>
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	<span style="font-size: 14px;">The question arises as to how long can the state rescue the loss-making SOEs by compromising on development expenditure. NAC â€“ once the pride of the nation â€“ has gone from bad to worse with losses amounting over Rs 2 billion. Boasting a sizeable fleet of 21 aircraft at one point of time, it is left with only three small aircraft that fly domestic routes and two medium sized jets. Among the biggest foreign currency earners not too long ago, NAC today merely watches in despair other domestic and international airlines snatching away its market share. Never-ending controversies on aircraft purchasing, political meddling with appointment of staff and loans have hit the corporation hard in the recent past. The employees appointed by the public enterprises (PEs) stood at 33,603 in FY 2008-09, while this figure dropped slightly to 33,526 in the succeeding fiscal year. The average monthly expenditure of these employees reached Rs 34,126 in FY 2009-10.</span></div>
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The taxpaying populace is infuriated because its money is funnelled into these failed enterprises while development activities and service delivery are taking a beating due to, among others, inadequate funding. Furthermore, there has been a lack of genuine intent to reform or privatise the loss making enterprises. The SOEsâ€™ survival now stands purely for political reasons. Their existence does not add significant value to the countryâ€™s productive capacity. During FY 2009/10, 22 PEs earned net profit, whereas 14 PEs recorded loss; some of them had negative net worth. The governmentâ€™s investment in these SOEs has reached a whopping Rs 84.91 billion. </span></div>
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	<span style="font-size: 14px;"><br />
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	<span style="font-size: 14px;">The total operating income of these enterprises in FY 2009-10 registered an increase of 21.63 per cent over the previous FY and reached Rs 130.98 billion. While the operating income of service sector enterprises increased by 70.2 per cent, the industrial sector enterprises registered the least increase in operating income at 4.2 per cent. The net fixed assets of 36 enterprises that totalled Rs 133.740 billion in the fiscal year 2008-09, reached Rs 139.365 billion by the end of the fiscal year 2009-10, an increase of 4.2 percent. While analysing the entire profit and loss of the 36 PEs, the net profit of Rs. 10.55 billion they had earned in fiscal year 2009-10 grew by Rs 8.3 million in the fiscal year 2010-11. However, if three major profit making SOEs are taken out, these statistics cut a sorry figure in itself. </span></div>
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	<span style="font-size: 14px;"><br />
	</span></div>
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	<span style="font-size: 14px;">Akin to the case in other countries, the state enterprises in Nepal too are present in areas that could be more successfully occupied by the private sector. Incompetent SOEs have blocked private dynamism completely and, at the same time, necessitated an insurmountable financial and administrative burden. In contrast, privatisation promises to free up public assets for activities of urgent attention and facilitate improved and inexpensive services besides unlocking prospects for private sector growth. However, the Privatisation Cell of the MoF has no immediate plans to privatise SOEs anytime soon. â€œWe are not in a position to close loss making enterprises either as they provide employment to thousands of people,â€ Regmi informs on a rather helpless note. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
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<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Nepalâ€™s privatisation programme articulated in the 9th plan envisions promoting private sector participation in the economy. A number of enterprises, mostly agricultural and industrial, have been privatised since the programme began in 1992 with the government playing the role of a catalyst. However, a number of productive SOEs such as Bansbari Leather and Shoes Factory (BSLF) and Agricultural Tools Factory (ATF) have ceased to function after being privatised owing to governmentâ€™s thoughtlessness in selection modality and consultation process, and lack of proper homework while selling them. Over the last decade or so, the privatisation drive has slowed down considerably to the extent of coming to a virtual standstill.&nbsp;</span></div>
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	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">The delicate financial health of the SOEs and their failure to adequately gratify market demands is a persistent problem that cannot be resolved by gifting subsidies and granting loans. Mismanagement, overstaffing, poor governance and accountability, competition from private players and most importantly, politics prevailing over economic imperatives have destroyed these SOEs and led them to their present dismal state. One can safely assume that unless there are radical and wholesome practices pursued such as privatisation (save the ones that are strategically linked to critical security and national interests) of these ailing enterprises, the SOEs will continue to be resigned to their fate and the taxpayers of this country will keep on bearing their burden. Worse, bailing out the SOEs of their financial chaos time and again only makes them more inefficient. Itâ€™s but tragic that the sick enterprises are encouraged to take the state and the nation at large for granted. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The Loss-making SOEs</span></div>
<table border="0" cellpadding="0" cellspacing="0" style="margin-left: 4pt; border-collapse: collapse; width: 321px; height: 678px;">
	<tbody>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border: 1pt solid white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Name of the SOE</span></b></span></div>
			</td>
			<td style="width: 59.9pt; border-width: 1pt 1pt 1pt medium; border-style: solid solid solid none; border-color: white white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><b><span style="color: white;">Total Loss </span></b></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Dairy Development Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 325.1 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Herbs Production and Processing Company Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 136.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Hetauda Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 619.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Janakpur Cigarette Factory Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 800.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Drugs Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 485.8 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Udaypur Cement Industry Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.773 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oriental Magnesite </span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 3.597 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Food Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.107 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Oil Corporation Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 8.418 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Airlines Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 1.557 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Gorkhapatra Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 89.7 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Television</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 760.2 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Water Supply Corporation</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 391.4 million</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Nepal Electricity Authority</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 18.230 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Agricultural Development Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 4.391 billion</span></span></div>
			</td>
		</tr>
		<tr style="height: 3pt;">
			<td style="width: 116.5pt; border-width: medium 1pt 1pt; border-style: none solid solid; border-color: -moz-use-text-color white white; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="155">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rastriya Banijya Bank Ltd</span></span></div>
			</td>
			<td style="width: 59.9pt; border-width: medium 1pt 1pt medium; border-style: none solid solid none; border-color: -moz-use-text-color white white -moz-use-text-color; background: none repeat scroll 0% 0% rgb(134, 55, 59); padding: 4pt; height: 3pt;" valign="top" width="80">
				<div style="text-align: justify;">
					<span style="font-size: 14px;"><span style="color: rgb(255, 255, 255);">Rs 11.228 billion</span></span></div>
			</td>
		</tr>
	</tbody>
</table>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>Source</i>: Ministry of Finance Report, Ashad 2068</span></div>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'Public corporations in Nepal will receive subsidies in excess of Rs 2.77 billion in the fiscal year (FY) 2011-12. According to the budget announced on 15 July this year by Finance Minister Bharat Mohan Adhikari, the government.....',
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	(int) 7 => array(
		'Article' => array(
			'id' => '426',
			'article_category_id' => '40',
			'title' => 'Policy Twists For Public Enterprises (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: 0.05pt;">T</span><span style="letter-spacing: 0.05pt;">he budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and ensure efficiency of public enterprises. However, this yearâ€™s budget has also mentioned a policy to disinvest the government shares among general public.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The latest budget is a step backward on privatisation policy adopted by previous governments. The budget presented by Dr Ram Sharan Mahat for the fiscal year 2007/08 had proposed a gradual privatisation of the state-owned enterprises. Then, the budget of 2008/09 presented by Dr Baburam Bhattarai of the UCPN-Maoist led government reversed the policy of privatisation. Next yearâ€™s budget by Surendra Pandey gave continuity to Bhattaraiâ€™s agenda to increase investments in government corporations. Economic experts had argued against increasing the investment in state-owned enterprises instead of taking up privatisation measures.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Though there were attempts of privatisation during the Panchayat system, they were unsuccessful.. The concept of socialism faded and liberalisation came into picture after the fall of communism in Eastern Europe. Nepal could not avoid the influences of the global change. There was massive change in Nepali economic policy with the restoration of democracy as the process of privatisation of public enterprises began after 1991. Experts have it that the new initiative was taken mainly because of the pressure from IMF, The World Bank and other donors. The change was incorporated in the White Paper published by the Girija Prasad Koirala government in 1991. The policy tried to balance the public and private sectors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The Koirala government emphasised on selling the shares of public enterprises at the stock market. That was aimed at widening the ownership of the newly-privatised corporations and also to ensure competition for companies as well as consumers. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Harisiddhi Brick and Tile Factory, Bhrikuti Paper and Pulp Factory and Bansbari Leather and Shoe Factory were privatised in the first phase. In 1993 and 1994, 14 companies were selected for privatisation. Seven of them were wholly government-owned while the rest had joint-ownership with the private sector. Similarly, in the second phase, Balaju Textile Factory, Nepal Film Development Corporation, Nepal Lube Oil, Bitumen and Barrel Industry and Raw Hide Collection and Development Corporation were privatised. Likewise, Jute Development and Trading Corporation and Tobacco Development Company were liquidated.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">The policy took a different turn when the Communist Party of Nepal (UML) came to power in 1994. Unlike the Nepali Congress, the UML government favoured public enterprises. The budget speech of the same year read, â€œTo lessen the financial burden of the government, a privatisation program based on economic policies of the government will be implemented. There will be separate listing of corporations that are to be privatised and those that will not be privatised. The privatisation programme will be expedited for those corporations included in the privatisation lists.â€ However the government policy could not take off as the government did not even list the companies for privatisation. Further privatisation was certainly out of question. The budget of 2001/02 tried to be most intensive and aggressive towards public enterprises. The budget presented by Dr Ram Sharan Mahat promised to set up a separate unit in the Ministry of Industry, Commerce and Supplies to coordinate and monitor the price, quality and quantity of goods and services produced by the public sector. This budget also decided to prepare strategic and organisational planning to reform managerial, accounting and financial systems of the public enterprises. Most remarkably, it also decided to convert state-owned enterprises into companies curtailing the number of board members, their functions and duties to ensure professionalism.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">On minimising the cost to government, the budget presented by Dr Mahat read, â€œThe tendency of increasing short-term benefits by neglecting social security in public enterprises and development boards will be discouraged.â€ He proposed the provision to manage pension and gratuity compulsorily through Citizen Investment Trust. Likewise, the executive chief was made liable for creating any new financial liabilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another significant proposition by Dr Mahat was to encourage the private sector investment where the involvement of the government is deemed unnecessary and where there existed a high possibility of attracting private sector.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">After 2001, 17 companies have been either liquidated or privatised. Nepal Telecommunication Company was the latest one to join the list in 2008 when its some shares were sold to the public. However, the privatisation process stalled completely after 2009/10 except for the sale of government shares of Small Farmer Development Bank to Small Farmers Cooperatives&nbsp; in 2010/11.</span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '0000-00-00',
			'keywords' => '',
			'description' => 'The budget for fiscal year 2011/12 has once again proposed the establishment of High-Level Public Enterprises Management Board. The board will try and.....',
			'sortorder' => '340',
			'image' => null,
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	(int) 8 => array(
		'Article' => array(
			'id' => '425',
			'article_category_id' => '40',
			'title' => 'What’s Wrong With Public Enterprises? (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p style="text-align: justify;">
	<span style="font-size: 14px;"><span>T</span><span>he government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by Bharat Mohan Adhikari. The promise made in the budget 2010/11 to form the committee has however remained unfulfilled.&nbsp;The board is expected to manage and run the corporations effectively and efficiently. Suresh Kumar Regmi, Under Secretary of Corporation Coordination and Privatisation Division at the Ministry of Finance, said the proposal to constitute the board has been sent to the cabinet for approval.</span><br />
	</span></p>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The role of the government to act as a referee for the development of economy seems to be neglected by the new budget. Rather, it has proposed the concept of an economy led by cooperatives. Obviously, private sector is thoroughly dissatisfied with the government move. Dr Ram Sharan Mahat, former Finance Minister and Nepali Congress Leader, said, â€œThe proposal of the government-owned cooperatives is not an alternative. Rather, they are against the self-help spirit of the cooperatives.â€</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the new budget, the government has tried to democratise the selection of Chief Executive Officers and General Managers of public enterprises. Merit-based selection is expected to welcome capable and qualified leadership. Often, it is alleged that poor leadership in the corporations led to their deterioration.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Similarly, this yearâ€™s budget says, â€œA policy of disinvesting the share of the public enterprises to the public will be implemented.â€ The share of the government was Rs 82.76 billion in 2009/10 while its total loan investment in 36 public enterprises remained at Rs 84.92 billion. In the previous fiscal year, the figures stood at Rs 86.13 billion and Rs 74.60 billion respectively. According to the economic survey of 2010/11, share investment of the government decreased by 3.9 per cent while loan investment rose by 13.8 per cent.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the name of reforms, the government is funnelling billions of rupees from the state coffers as subsidy to public enterprises which are constantly failing to show their competency in comparison with the private sector. This year, an estimated Rs 2.77 billion is being provided as subsidy. Similarly, the subsidy was Rs 1.97 billion in 2010/11 and Rs 1.54 billion in 2009/10. Regmi said, â€œThe corporations will not progress if they remain dependent on the government. Rather, they must manage their operations on their own.â€ â€œWhen the private companies in the same sector can do well, why canâ€™t the government-owned companies make profit,â€ he asked.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">In the last fiscal year, out of the 36 public enterprises, 22 were in profit while 14 were bearing losses. None of the corporations engaged in production are in profit. The economic survey shows that the net profit of Rs 10.55 billion in fiscal year 2009/10 grew by Rs 8.3 million in the fiscal year 2010/11. The share of net operating income of the public enterprises has been 11.2 per cent of the GDP. Regmi said though the number of profit-making companies has increased in recent years, the combined profit of the corporations has not increased. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although Nepal Tourism Year 2011 is going on, national carrier Nepal Airlines Corporation (NAC) is in the worst possible condition. Similarly, Hetauda Cement and the first cigarette factory of the nation, Janakpur Cigarette Factory, are also in dire straits. Despite a monopoly in the market, it is unfortunate to see Nepal Oil Corporation (NOC) and Nepal Electricity Authority (NEA) in heavy losses. Stories of other 14 corporations are no different. Poor management, inefficiency, corruption, weak leadership, skewed policies are to be blamed for their failure.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Likewise, the net fixed asset of the 36 public enterprises was Rs 133.740 billion in the fiscal year 2008/09 which increased to Rs 139.365 billion by the end of the fiscal year 2009/10, up 4.2 per cent. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">With the liberalisation policy on economy introduced after the restoration of democracy in Nepal, the government initiated the process of privatisation, liquidation and termination of state-owned enterprises in 1993. Ever since, 30 companies have been divested of which 18 corporations have been privatised while 11 have been liquidated and one, Nepal Transport Corporation, was dissolved. The disinvestment has been carried out through the sale of businesses assets, partial disinvestment of shares, sale of current assets, leasing of buildings and land, management contract, liquidation, and termination. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector and some economists are complaining that the government has taken a regressive step by reverting to state-controlled economy from the currently liberal economic regime. Mahat said the proposal of the government brought through the budget 2011/12 is suspicious and non-transparent. â€œThe government has failed to bring any concrete policy for the state-owned enterprises. It lacks an action plan for the corporations,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Experts opine that the government should play the role of a referee. It should work for the development of the real sector and the economy but it should not involve in doing business. They say competitive market entities should be handed over to the private sector. Dr Prakash Chandra Lohani, former Finance Minister and Co-president of Rastriya Janasakti Party, says the government and the private sector must complement each other. He opines without ensuring law and order and a strong policy framework, the private sector cannot prosper. â€œFor that, competitive regulation is necessary and the government should try to minimise the risk of the private sector. However, this yearâ€™s budget does not talk about vision and roadmap for the private sector,â€ he said.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Although much criticised, the public enterprises have been the source of employment to 33,603 people at executive level appointed by the management in 2008/09. However, the figure dropped to 33,526 in the succeeding fiscal years. Regmi also accepts that public enterprises&nbsp;are overstaffed. Experts opine that the number of staff in sick corporations can be lowered, which may lower their cost of operation and.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<p style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">According to Regmi, the government does not have a list of public enterprises that they want to privatise or a policy framework to privatise them in the near future. He suggests that the policy should be made in coordination with line ministries to give such companies the right direction. â€œTrying to save them by the finance ministry alone will not work,â€ said Regmi. â€œA political decision can choose either to close down or keep operating the public enterprises. However, as thousands of people are getting employment even in sick public enterprises, they cannot be abruptly closed.â€ </span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-09-17',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'The government reiterated the proposal to establish a High Level Public Enterprises Management Board in the fiscal year 2011/12 in the budget presented by.....',
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	(int) 9 => array(
		'Article' => array(
			'id' => '424',
			'article_category_id' => '40',
			'title' => 'International Privatisation Trend (august 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><span style="color: rgb(134, 55, 59); letter-spacing: -0.05pt;">M</span><span style="letter-spacing: -0.05pt;">otivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation programmes in the last twenty-five years or so. Decades of poor performance and inefficient operations by SOEs led the governments to embrace privatisation. Thousands of SOEs have been given away to the private sector in Africa, Asia, Latin America, and Eastern and Western Europe. Throughout the world, annual revenues from privatisation soared during the late 1990s, peaking in 1998 at over US $100 billion.</span></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Widespread privatisation in recent decades has generated a reasonable hype concerning the effects of ownership on performance. Most studies find that privatisation has a positive impact on profitability and efficiency of business firms. However, very little is known about the effects of partial privatisation where the government remains the controlling owner. Indiaâ€™s privatisation programme has followed a pattern of partial privatisation through share offerings but at a particularly slow rate. Between 1991 and 1999, the Indian government raised about $9 billion in privatisation revenues, compared to nearly $71 billion raised in Brazil and $21 billion in China over the same period, according to Global Development Finance Report 2001.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Since both ownership and control shift to the private sector at the same time, full privatisation makes it difficult to distinguish between the political and the managerial perspectives. In contrast, under partial privatisation, the shares of the firm are traded on the stock market while the firm remains under government control and subject to political interference. Letâ€™s have a look at the following examples of how some countries and regions responded to privatisation in the last two to three decades. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">India</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The state intervention in SOEs has been undergoing a close scrutiny in many developing countries including India since 1980. The argument was that excessive political interference and lack of managerial interest (autonomy) hampered the performance of SOEs. Economic policy and state-owned sector in the post-independent India can be divided into four phases: (i) 1950-1965, (ii) 1966-1984, (iii) 1984-91 and (iv) post-1991 policy regime. The second sub-period of the second phase i.e. 1973-84 recorded a slow process towards liberalisation, which culminated into an irreversible process of liberalisation of the economy through the third (1984-91) and during final phase (1991 onwards). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Concepts such as liberalisation, privatisation, disinvestment and market-friendly approach replaced the old concepts of socialism and mixed economy. The period of 1966-84 culminated in a total transformation in the economic policy where economy was made predominantly dependent on market forces rather than on the state. The attempt, it seemed, was to depoliticise economic decisions as far as possible. The industrial policy that was initiated in 1985 was the culmination of the process of drifting away, which started during the second phase of the economic policy in India. The 7th Plan (1985-90) proposed larger planned outlays for the private sector as compared to the state-owned sector for the first time in the planning history of India.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India witnessed a major policy reform programme consisting of considerable deregulation of industrial sector as well as liberalisation of foreign investment and technology imports since July 1991. The 8th, 9th and 10th Plan documents suggested many policy initiatives towards restructuring, modernisation, rationalisation of capacity, product-mix changes, privatisation, autonomy, performance accountability and disinvestments policy. The movement of denouncing socialism that started in many parts of the world influenced Indiaâ€™s policy makers as well. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">India undertook sweeping economic reforms that included deregulation and privatisation in response to the foreign exchange crisis in 1991. Since the Industrial Policy Resolution of 1991, which outlined the economic reforms, nearly every governmentâ€™s annual budget has declared that the privatisation goal is to reduce government ownership to 26 per cent of equity. In the decade following the launch of the privatisation programme, the government sold minority shares through a variety of methods including auctions and public offerings in domestic markets, and through global depository receipts in international markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The share of state-owned sector in total investment continuously declined since the 1980s is illustrated in the following table. The relative shares of the state-owned and private sectors during 7th, 8th, 9th and 10th plans clearly signal the rising importance of the latter at the cost of the former.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The 9th Plan divided SOEs into three categories (i) profit-making PSEs (Public Sector Enterprises); (ii) PSEs making marginal profits and losses; and (iii) PSEs incurring substantial losses. Accordingly, all PSEs were placed in suitable categories. Disinvestment Commission, started in 1996, primarily to discipline PSEs and make them result oriented was developed into a full-fledged Ministry for Disinvestment, thereby institutionalising the process of reforms and restructuring of PSEs. Once it was established that privatisation of SOEs was no longer a choice but an imperative, the stage was set for privatisation of SOEs. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Privatisation Trend</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The emphasis of Indian privatisation from 1991 to 2000 was on disinvestment through offloading of governmentâ€™s shares to the state-owned or financial institutions. During this period, the government offloaded shares in as many as 39 SOEs. However, since March 2000, the emphasis has increasingly been on strategic sales of identified SOEs. The table below briefly summarises the amount realised and the number of SOEs disinvested or privatised till November 30, 2003.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Modern Foods Industries Limited (MFIL) was the first SOE to be strategically sold followed by Bharat Aluminium Company (BALCO). Fifty one per cent of BALCOâ€™s shares were sold to Sterlite Industries for Rs 5,515 million. Following this sale, the government was quick to proceed with strategic sales in important firms by divesting 51 per cent of the shares in Computer Maintenance Corporation (CMC) to Tata Sons and 74 per cent of the shares in HTL, PPL and Jessop (for Rs 550 million, Rs 1,520 million and Rs 180 million respectively) to Himachal Futuristic Corporations. Nineteen hotels of Indian Tourism Development Corporation (ITDC) and three hotels of Hotel Corporation of India Ltd (HCIL) collectively contributed Rs 6,866 million towards divestiture or disinvestment proceeds. For all these 19 hotels, 100 per cent of the equity was sold. In terms of individual sales, maximum proceeds (Rs 37 billion) were collected by selling 25 per cent of the equity in Videsh Sanchaar Nigam Limited (VSNL), followed by the contributions made by selling 27.5 per cent equity of Maruti Udyog Limited (MUL â€“ Rs 24 billion) and Indian Petrochemicals Corporation Limited (IPCL â€“ Rs 15 billion). </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Post-liberalisation era</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The government was forced to revise its economic policies following the exceptionally severe balance of payments and fiscal crisis in 1991 which resulted in disinvestment of government equity in the PSEs. The government steadily paved the way for a level playing field and competition with the private sector and thus resulted in PSEs being envisioned as revenue earning ventures of the government. Thirty individual Central PSEs were divested to select financial institutions namely Life Insurance Corporation (LIC) of India, General Insurance Corporation and Unit Trust of India (UTI) in bundles. Post-1996, sale through the global depository receipt route was also permitted and PSEs capitalised this opportunity to access international financial markets. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There was a strategic shift in the government policies between FY 2000 and FY 2004 that facilitated â€˜Strategic Saleâ€™ or disinvestment of government stake in PSEs. The process involved transfer of big blocks of shares and management control to the strategic partners that were identified through competitive bidding. Post-FY 2005, disinvestment realisations were primarily through the sale of small equity stakes. The government realised an amount of Rs 534.23 billion as disinvestment proceeds between April 1992 and May 2008.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">In recent times, several government-owned companies have either started disinvestment process or are planning to begin so including the Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Corporation Limited (ONGC). According to Disinvestment Secretary Sumit Bose, Follow on Public Offer (FPO) in SAIL was expected to raise Rs 7-8,000 crores while divestment of five per cent stake in ONGC will fetch the government around Rs 13,000 crores based on present market valuations. The government has proposed a disinvestment target of Rs 95,000 crores from the sale of shares in public sector companies over the next three fiscals, including Rs 40,000 crores in the current fiscal. Last fiscal, the government had raised Rs 22,400 crores through disinvestment in PSU companies by coming out with three Initial Public Offerings (IPOs) and three FPOs. The value of Indian governmentâ€™s stakes in listed SOEs is estimated at about US$ 320 billion and if unlisted companies are included as well, the total value would be approximately US$ 460 billion. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Russia</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The world learnt from the Russian experience that introduction of the â€˜shock therapyâ€™ or rapid mass privatisation can also lead to massive corruption. It underlined the fact that good governance mechanism is vital. Historically, private ownership of production facilities, financial companies and land was absent in the Union of Soviet Socialist Republics (USSR) for over 70 years starting 1917. As per the constitution of the Russian Socialist Federative Soviet Republic of 1918, land was transferred to farming units for management; all production units to â€˜labour collectivesâ€™; and the ownership of forests, natural resources, etc to the state. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Russian government spontaneously introduced a mass privatisation process in 1991 and introduced what was termed as â€˜shock therapyâ€™ â€“ instant price decontrols and rapid opening up of markets. This large scale movement of ownership transfer brought with it massive corruption in the auction process. The mortgage auctions in 1995 were some of the worst cases. Finally in 1997, a new model of privatisation was instituted under which companies were sold rather than distributed. Further, in 1998, the government also introduced processes of asset valuation by international advisors.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Current Scenario</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The SOEs continue to play an integral role in the Russian economy even though the role of private sector is ever expanding in Russia. The Russian government believes in the state role through ownership for industrial growth, economic diversification and energy security. The fraction of firms with 100 percent state and mixed (state and private domestic ownership) as per 2007 data is as follows: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; All firms and organisations: <br />
	11 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Employment: 39 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Capital investment: 32 percent</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">â€¢ &nbsp;&nbsp;&nbsp; Fixed assets (state ownership greater than 50 percent): 23 percent. </span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Hong Kong</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong is a relative newcomer to the global club of countries opting for privatisation. It has actually missed some opportunities to learn about and avoid certain problems of privatisation experienced in other countries. There have also been socio-political issues that are unique to Hong Kong. Its experience needs to be seen in the context of the long established worldwide phenomenon of SOEs and the trend of privatisation from early 1980s.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Despite being a British colony, Hong Kong didnâ€™t join the global trend of privatisation during 1980s and 1990s. Some ideas about privatisation were addressed in the government report for Public Sector Reform in 1989 but not followed up for two main reasons. First, there was no strong practical need to privatise public enterprises. Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region (HKSAR), had once acknowledged that the erstwhile colony had little external, political or budgetary pressure to reform its public sector. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Hong Kong recorded public budget surpluses year after year in the post-war period, much envied by other governments. The second reason for â€˜no privatisationâ€™ was political. During the long political transition till 1997, China opposed any colonial government proposal to privatise government assets in fear of a British plot to sell out the interests of the future HKSAR administration. However, the arguments about privatisation in Hong Kong have been reversed after 1997.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Divestment Plans</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Before the return of sovereignty to China in 1997, the Hong Kong government did not divest public assets because of Chinaâ€™s opposition and an absence of budgetary pressure. During the political transition, the colonial government was regarded as fairly competent in dealing with public confidence crises. However, after 1997, these conditions changed quite dramatically. The new conditions in HKSAR prompted the government to formulate divestment plans, but at the same time they raised potential problems for the implementation of the plans. After the political transition, China no longer opposed privatisation proposals of the HKSAR government.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Three Divestment Exercises</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Hong Kong community is generally receptive to the ideas of small government and privatisation compared to many other developed communities. The general acceptance in Hong Kong is partly due to the fact that the government uses public offers as the main strategy of divestment. The popular belief is that citizens will make good profits once they are allocated shares from the governmentâ€™s IPOs. Although the public generally favours public listing, the divestment exercises in Hong Kong were not without controversy. Fundamental conflicts of public interest in privatisation have had to be resolved from time to time. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">MTRC</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The Mass Transit Railway Corporation (MTRC) was the first target of divestment in Hong Kong. In late 1999, the government introduced new legislation to replace the MTRC ordinance and to grant a proposed new MTRC company the right to operate the subway system. In October 2000, 24 percent of the MTRC shareholding (US$1.28 billion in value) was divested by way of listing in Hong Kong, London and New York. The offer was 18 times over-subscribed and broke the local record for an initial offering. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Tunnels and Bridge</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">After the Legislative Council approved the relevant grant of power, the government divested the future revenues from five toll tunnels and a toll bridge in August 2004 under a securitisation scheme involving the listing of government notes worth US$ 770 million. The offer to individual investors was two times over-subscribed, and the portion earmarked for institutional investors was heavily subscribed. The assets themselves continue to be government-owned through a new government company, Hong Kong Link 2004 Limited. The day-to-day operation of the tunnels and bridge as managed by franchised private firms remains unchanged.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Link-REIT</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">The Housing Authority (HA â€” a statutory corporation) announced in July 2003 that it planned to divest most of its retail and car-parking facilities in public housing estates. The plan was that the government would first set up a new asset-owning and management company, Link Limited, and then divest its ownership entitlement to the companyâ€™s future revenue streams in full by way of the listing of a real estate investment trust fund, Link-REIT. The trust fund, REIT, was chosen as a vehicle for divestment partly because it would restrict the scope of Link Limitedâ€™s business initiatives and partly because the government wanted to promote REIT as a new type of financial product. The HA planned to transfer the retail and car-parking assets to Link Limited after the scheduled listing had been completed. In due time, Link Limited took over the day-to-day management of the HAâ€™s retail and car-parking facilities.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Latin America</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Latin American countries have been very active in privatisation. Even against the backdrop of massive economic transformations in transition economies, the privatisation record of Latin America seems remarkable. To facilitate their shift to a market economy, most Latin American countries launched mass privatisation programmes that resulted in dramatic reductions of state ownership. Latin America accounted for 55 percent of total privatisation revenues in the developing world in the 1990s followed by transition economies in Eastern Europe and Central Asia at 21 percent. The decline in the economic activity of SOEs has been more substantial in Latin America than in Asia and Africa, bringing levels close to those of industrialised countries. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Dramatic differences in the extent of privatisation are also evident within regions. In Latin America, for example, countries with large state owned sectors, such as Ecuador, Nicaragua, and Uruguay, barely privatised at all in the 1990s, while others such as Argentina, Bolivia, Guyana, Panama, and Peru raised revenues from comprehensive privatisation programmes that amount to over 10 percent of GDP. The difference in the extent of privatisation across countries and the large amount of assets in the hands of the state heightened the importance of understanding the privatisation record and of developing lessons for future privatisation programmes. However, Latin America has virtually halted its privatisation process in recent years after being the most active region in the 1990s. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><b><i>References</i></b></span></div>
<div style="margin-top: 5.65pt; text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>1&nbsp;&nbsp; Madhu Bala (2006) â€˜Economic Policy and State Owned Enterprises: Evolution towards Privatisation in Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>2&nbsp;&nbsp; â€œKPMG Internationalâ€ (2010) â€˜Resurgent PSUs Vibrant Indiaâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>3&nbsp;&nbsp; Nandini Gupta (2005) â€˜Partial Privatization and Firm Performanceâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>4&nbsp;&nbsp; Rikkie L K Yeung (2005) â€˜Divestment in Hong Kong: Critical Issues and Lessonsâ€™.</i></span></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><i>5&nbsp;&nbsp; Alberto Chong &amp; Florencio LÃ³pez de Silanes (2004) â€˜Privatization in Latin America: What Does the Evidence Say?â€™</i></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>',
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			'description' => 'Motivated by the evidence on the failures of state-owned enterprises (SOEs), governments in more than a hundred countries have undertaken privatisation.....',
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		'Article' => array(
			'id' => '414',
			'article_category_id' => '40',
			'title' => 'Demand And Supply (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per cent of the Nepali population has access to electricity through grid and off-grid systems. The main load centre is the central zone which includes the Kathmandu Valley. Nepal owns a number of hydropower plants with a total installed capacity of around 650 MW which includes several small and medium hydropower plants owned by Independent Power Procedures (IPP). A significant amount of energy is also supplied by thermal (Diesel) and solar photovoltaic power plants besides the micro hydro plants in hilly areas. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">There is a huge power demand-supply imbalance which is evident from load shedding implemented over the last several years now. At present, Nepal Electricity Authority (NEA) is supply -deficit. While the peak power demand in wet season is more or less met by the supply, the deficit during the dry season is very high resulting in power outage for as much as 16 hours a day in the capital itself. According to a forecast, the power misery due to supply-deficit is likely to continue till at least 2013-14, when, among others, Upper Tamakoshi (456 MW) is expected to be commissioned.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Constraints</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">There is no denying that lack of development of indigenous energy sources has resulted in an over-dependence on fuel import. This drains a significant portion of the nationâ€™s foreign exchange earnings and poses threats to long-term energy security and to the environment. Pradhan reasons, â€œWe canâ€™t always depend on imported energy so we have to develop hydropower as it is the cheapest form of energy. There is no alternative to hydropower.â€&nbsp;The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy given to other energy sources pale in comparison. There should be a level-playing field without any discrimination. â€œThe stateâ€™s attitude is the major hindrance towards attracting private sector investment in renewable energy,â€ alleges Shrestha. He adds that the government should let petroleum products compete with other energy products instead of being biased towards it. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Another problem is that of major differences in opinion among the energy experts who donâ€™t seem to agree on practically anything.&nbsp;A disagreement among experts also puts the government in a lot of difficulty. A common agenda for producing 3,000 MW is the need of the hour, probably leaving disagreements for the future.&nbsp;Shrestha explains, â€œI personally believe there are people in Nepal who have a lot of knowledge and an idea regarding the energy sector but disagreement takes precedence among them. My request to these experts is to first ensure a position where we can generate about 3,000 MW for basic need.â€</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Potential</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Bio-gas potential is immense from the perspective of Nepalâ€™s renewable energy sector. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. In other words, bio-gas is providing 250,000 LPG cylinders worth of energy in Nepal. This is certainly an achievement that can be taken forward. Cow dung was used for operating bio-gas plants earlier, however, a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, it is viable to increase the number of bio-gas plants in Nepal. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal receives ample solar radiation with approximately 300 days of sun a year. The development of solar energy is thus reasonably favourable in many parts of the country. As per a report by Alternative Energy Promotion Centre (AEPC) under the Solar &amp; Wind Energy Resource Assessment in Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Solar panels are a highly feasible option for families using minimum energy for lighting purposes and can be installed for Rs 3-4,000 per household. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">The third largest indigenous biomass source of energy in terms of consumption is agricultural residue in Nepal which directly comes from the agricultural crops. It is therefore indicative that more than two-thirds of the total energy requirement of the country can be supplied solely from agricultural residues while considering the heating value of the resources. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. This can be processed at big bio-gas plants and used for generating energy rather than sending it to landfill areas. However, for this to happen, the waste has to get collected in a segregated manner by applying ways to sort bio-degradable waste right at the source. It requires discipline though to make the users dump â€˜right wasteâ€™ in designated containers themselves. Shrestha cites the example of sewerage treatment as a serious practice in most cities of the advanced countries where water is drained back in the river afte</span><span style="letter-spacing: 0.35pt;">r taking out the energy and purifying it. He emphasises that waste management is absolutely crucial in the <br />
	present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The major impact of power outage is on industry as it needs 1,100 gigawatt hours (GWh) of energy for the industrial sector which is about 40 per cent of the total electricity produced by NEA. It has close to 1.77 million subscribers of which 1.2 million households consume minimum energy for lighting purposes. â€œIf we could equip these households with 100W solar panels, we can easily save 500 GWh which can be diverted to industry,â€ Shrestha calculates. He adds that the government must take initiatives to this effect by providing tax relief and subsidy of some kind to the households and help the nationâ€™s industries avert collapse. On the other hand, NEA wonâ€™t be affected adversely because the industries will be there to make up for its â€˜apparent lossâ€™.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepal has over 6,300 rivers and rivulets and thousands of hills and valleys. The perennial nature of Nepali rivers and the steep gradient of the countryâ€™s topography provide ideal conditions for the development of some of the worldâ€™s largest hydroelectric projects. â€œIf we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset,â€ Pradhan advises. Hydropower could be the engine of growth for Nepal as it would offer opportunity to create employment, alleviate poverty and provide basic services including good governance. The development of this sector can be a potent contributor for transforming villages, cities and societies in Nepal into prosperous and inclusive economic zones. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Looking Forward</span></span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Nepalâ€™s imports have increased by Rs 25 billion due to severe power cuts (Rs 12 billion-diesel, Rs 3 billion-electricity import, Rs 2 billion-battery, Rs 5 billion-inverters and generators, rest on other means of energy like candles etc). The country is already facing a trade deficit of Rs 300 billion, which makes it mandatory for Nepal to find measures towards minimising imports. Pradhan says foreign investment can come for the hydropower sector as it is the only area in Nepal for which investors donâ€™t have an alternative. â€œThe FDI for other sectors may get diverted to other countries due to various reasons such as low wages, security environment and tax free policies. However, in order to exploit the water resources of Karnali River, for example, they have to come to Nepal,â€ he elucidates.</span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.05pt;">Pradhan further recommends not to link water resources to nationalism. He elaborates, â€œSaudi Arabia makes oil available at the cheapest rates to its people and sells surplus oil for national development. We should also adopt this policy: </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">The water unused today will go in waste; this is a time bound business.â€ He asserts hydropower is a sustainable source of energy for Nepal as well as for the region and has the potential to minimise imported energy. He says if Nepal can focus on water management, it can not only eradicate its domestic power woes but also play a regional and global role energy-wise. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: -0.05pt;">Recent developments indicate that our focus will be on reducing load shedding in the next five years or so. â€œMy observation is that energy crisis will continue in the next five years,â€ says Dr Shrestha. He adds the energy sector does not hold out a very bright future and will have many problems but Nepal can certainly make some valuable progress in attaining energy independence. He also warns experts and authorities against depending on a single energy source such as hydropower and instead asks them to work for an appropriate energy-mix. â€œWe must determine our total energy-mix scenario over the next five, 10 or 20 years now,â€ he asserts.<br />
	<br />
	</span></span>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 13.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">Power Projects Licenses </span></p>
	<p class="newsubhead" style="margin-top: 0in;">
		<span style="font-size: 8.5pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">(List updated June 03, 2011</span><span style="font-size: 10pt; font-family: &quot;Arial Unicode MS&quot;,&quot;sans-serif&quot;;">)</span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Issued Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 202 projects = 149.769 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 220 projects = 1505.661 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 57 projects = 2966.68 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 34 projects = 10854.12 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 61 projects = 1385.806 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">List of Applications</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (Below 1 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 758 projects = 642.976 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (1 to 25 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 581 projects = 3932.34 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Application for Survey License for Generation (25 to 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 69 projects = 3840.89 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; letter-spacing: -0.15pt;">Application for Survey License for Generation (Above 100 MW)</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 45 projects = 16798.72 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 71 projects = 2596.117 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Cancelled Construction License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 3 projects = 23.5 MW</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">&nbsp;</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><b><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Licenses</span></b></span></p>
	<p align="left" class="BODYTEXT" style="margin-top: 7.45pt; text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">GON Reserved Survey License for Generation</span></span></p>
	<p align="left" class="BODYTEXT" style="text-align: left; text-indent: 0in;">
		<span style="font-size: 14px;"><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Total capacity for 27 projects = 1627.699 MW</span></span></p>
	<p class="BODYTEXT" style="margin-top: 2.5pt; text-indent: 0in;">
		<span style="font-size: 14px;"><i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">Source</span></i><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;">: Department of Electricity Development, Ministry of Energy</span><br />
		</span></p>
</div>',
			'published' => true,
			'created' => '2011-09-05',
			'modified' => '2011-09-05',
			'keywords' => '',
			'description' => 'The story of power position in Nepal is that of highest potential and lowest consumption. The electricity demand in Nepal is increasing by about 10 per cent every year and close to 40 per.....',
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	(int) 11 => array(
		'Article' => array(
			'id' => '413',
			'article_category_id' => '40',
			'title' => 'SHADOW OF ENERGY (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<span style="font-size: 8pt;">Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign investments. To come out of the current mess, experts offer many models but the problem is they donâte agree on which one to pursue in what degree. In this cover story, New Business Age unravels the industry and the roadblocks.<br />
	<br />
	</span></div>
<div style="text-align: justify;">
	<b>&nbsp;</b></div>
<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 10.5pt; letter-spacing: -0.05pt;">N</span><span style="letter-spacing: -0.05pt;">epal's current energy situation is in dire straits, to say the least. Despite its potential to be a credible power producer even to the extent of exporting surplus energy, it has miserably failed at meeting its own domestic demand.&nbsp;A mammoth 68 per cent of our energy needs are met by exploiting forest resources which has resulted in reducing Nepal's forest area to a mere 30 per cent. If deforestation continues at the current rate, one should not be surprised if we have no forests to talk about in the next three to four decades. </span></div>
<div style="text-indent: 0in; text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">With increasing population, Nepal will not be able to fulfil its energy requirements if it depends so heavily on the declining forest resources. The consumption of petroleum products has grown incredibly over the past decade-and-a-half so much so that we spend more money on importing petroleum products than we earn by our total exports. â€œNepal will have to take a World Bank loan in 2020 only to buy petrol fuel if its import continues unabated in the present manner and that will be a total disaster, says Dr Jagan Nath Shrestha, Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University.&nbsp;</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.05pt;">Nepal still does not have its own reserves of gas, coal or oil in economically significant quantity. Although its most significant energy resource is water, less than one per cent of hydropower potential is currently harnessed. Nepal is extremely lucky in terms of clean water over 225 billion cubic metres of water flows down its rivers every year which is approximately 20,000 litres of water per person per day. Even if Nepal was an aggressive agro-economic country, it would consume less than 5,000 litres per person per day. Looking at this surplus, Er Gyanendra Lal Pradhan, Executive Chairman of Hydro Solutions Pvt Ltd, says, â€œI see no reason why we should not exploit our water resources for meeting domestic water needs as well as exporting the daily per capita surplus of 15,000 litres of water.â€ </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: 0.1pt;">It's no secret that Nepal's economic and social development is critically hampered by its inadequate energy supply. Moreover, developing and exporting surplus energy resources can help develop other sectors and enable the country to import other products that cannot be produced indigenously. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Mix<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The total energy consumption of Nepal currently stands at over 10 million tonnes of oil equivalent (TOE). While close to 90 per cent energy is derived from traditional resources, the rest comes from commercial and renewable sources. Nepalâ€™s electricity generation is dominated by hydropower and only one per cent energy need of the country is fulfilled by electricity. Bulk of the energy need is dominated by fuel wood (68 per cent), agricultural waste (15 per cent), animal dung (8 per cent) and imported fossil fuel (8 per cent). </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<strong><span style="letter-spacing: -0.05pt;">Energy Consumption<br />
	<br />
	</span></strong></div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Energy mismanagement has been plaguing the country for a long time now. It has become absolutely important to focus on energy resources that promise sustainable supply. â€œThe total energy availability and the accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th,â€ claims Dr Shrestha. He adds that people have to become conscious about and inculcate a habit of conserving energy. For example, every kilowatt hour (kWh) of energy saved is equivalent to one kWh generation. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The overall energy consumption in Nepal is largely dominated by the use of traditional and non-commercial forms of energy such as fuel wood, agricultural residues and animal waste. The remaining energy consumed comes through commercial sources such as petroleum fuels, coal and electricity and renewable sources. It would be worthwhile to mention here that the share of commercial sources in Nepalâ€™s overall energy consumption has increased considerably in the last decade-and-a-half. The renewable energy consumption has been registering an annual growth of more than 15 per cent on an average. And, within the renewable energy system, solar energy consumption is increasing at a more-than-steady 200 per cent annually. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">A staggering 18 million metric tonne of forest timber is cut every year while experts say that the sustainable level is only half of it. There are 5.8 million households in Nepal but only 400,000 households use Improved Cooking Stoves (ICS). These households using fuel-efficient stoves save half the energy. Barring the urban areas where ICS cannot be brought to use, a good 3 million households in rural Nepal can benefit from this improved technology. If this endeavour could be pursued in a focused manner, the consumption of timber-for-fuel can come down to half i.e. 9 million metric tonne in the next three to five years. This could help the forests grow and make the forest usage more sustainable. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The new boundary of Traditional Energy Resources (TER) has extended beyond the territory of forestry. Biomass is the major source of energy, particularly in rural Nepal as availability of biomass resources for energy production exists in abundance. The new territory of bio-energy now encompasses agriculture, livestock, industry and human settlement sectors as well. However, the use of some traditional energy sources is neither sustainable nor desirable from environmental considerations.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">More than 300,000 households use solar electricity in Nepal whereas an average of four-five kWh per square metre per day of solar energy can be generated in Nepal. The solar dryers have extensive use in the rural areas for drying of agriculture products and food. Solar Cookers are being used to cook food which saves fuel and helps deforestation to slow down. For a large part of the rural population consuming low electrical energy, there is no viable alternative to solar electricity. Besides, solar electricity generating systems do not need fuel or extensive infrastructure and are easy and quick to install. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Water is plentiful in the rugged hills of Nepal and micro-hydro provides a more practical and cost effective alternative. An estimated 150,000 households benefit from the micro hydro sector in Nepal and it has greater potential to be a major source of energy in the rural areas. </span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The hydropower sector has made some progress indeed over the last five years or so. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction and another 250 MW has been added recently. â€œWe are certainly not late in identifying the sectorâ€™s immense potential but we must make it work now to ensure that we are not behind schedule in the future, Pradhan says on a cautious note. He adds, â€œThis country will collapse if we donâ€™t export hydropower in the near future because we have so much to import for which we need to pay through exports.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">However, the present situation is that Nepal has developed approximately 600 MW of hydropower only. Therefore, the bulk of the economically feasible generation has not been realized yet. Although bestowed with tremendous hydropower resources, only about 40 per cent of Nepal's population has access to electricity. Most of the power plants in Nepal are run-of-river type with energy available in excess of the country's demand during the monsoon season and deficit during the dry season.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">Looking at the energy consumption pattern of the world, Nepal has one of the lowest energy consumption levels. An average of 15 gigajoule (GJ) per capita is the minimum that a country can think of. Out of this 15 GJ, most of the energy is spent on cooking and thermal applications. Dr Shrestha analyses the situation thus: Nepal's electricity consumption is probably one of the lowest in the world, hitting our economic activities hard. We are facing the consequences because of low production levels in this country.</span></div>
<div style="text-align: justify;">
	<br />
	 </div>
<div style="text-align: justify;">
	<span style="letter-spacing: -0.05pt;">The residential needs account for the major share of energy consumption (89.1 per cent), followed by transport (5.2 per cent), industry (3.3 per cent), commercial (1.3 per cent) and then the agricultural sector and others. Due to inadequate numbers of energy intensive industries, the industrial sector holds the third position in Nepalâ€™s total energy consumption.<br />
	<br />
	<br />
	<br />
	</span></div>',
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			'created' => '2011-09-05',
			'modified' => '2012-08-23',
			'keywords' => '',
			'description' => 'Despite immense potentials for electricity generation, Nepalis have to suffer long hours of power-cuts. This affects its industrial output as well, which in turn makes Nepal a less attractive destination for foreign.......',
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	(int) 12 => array(
		'Article' => array(
			'id' => '412',
			'article_category_id' => '40',
			'title' => 'Give Topmost Priority To Hydropower Development In Nepal’s Interest (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Er Gyanendra Lal Pradhan</strong>, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the Executive Member of Independent Power Producersâ€™ Association, Nepal (IPPAN), Federation of Nepalese Chambers of Commerce &amp; Industry (FNCCI) and SAARC Chamber of Commerce &amp; Industry, Nepal. Er Pradhan has initiated a number of successful projects and enterprises of varied scope and sizes in his 25 years of career. He has received the prestigious â€˜Manager of The Year 2006â€™ award from Management Association Of Nepal (MAN) and â€˜Excellence Award 2010 in Energy (Hydropower)â€™&nbsp;from Hydro Nepal-Journal of Water, Energy and Environment. He has also won several other recognitions for his contributions to hydropower and clean energy. He has visited over 100 hydro power plants of 1 KW to 18,600 MW capacity in over 20 countries. In an interview with <i>New Business Age</i>, Er Pradhan shared his views on hydropower sector in Nepal and what can make it a booming success in the country. Excerpts:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">How do you assess the overall development of hydropower sector in the country in last couple of decades?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The private sector started investing in hydropower after 1990 following the liberal policy adopted by the government. But there was a lack of favourable work environment due to the decade-long insurgency in Nepal. Even for the period between 2000 and 2005, you could hardly brand this sector as lucrative. However, after 2005, well-to-do and influential people including politicians have been investing and maintaining shares in hydropower projects. Today, all political parties have hydropower development as the topmost agenda in their manifestos. Though we are not late in identifying the sectorâ€™s immense potential, we must make it work now. The private sector has come forward promising to develop 2,000 MW while the government has projects for 600 MW under construction. Another 250 MW has been added recently. So, we have been making some progress indeed over the last five years or so. But, like I said, itâ€™s about time we gave topmost priority to hydropower development in Nepalâ€™s interest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite having vast water resources, why has Nepal not been able to exploit it to the maximum?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">The earthâ€™s surface area is dominated by water at 70.8 per cent but the proportion of clean or fresh water is three per cent only. From that perspective, we are extremely lucky to have 20,000 litres of clean water per person per day in Nepal. However, water mismanagement in our country has led to where we stand today. There is no water in the tap and no water for irrigation and electricity either. You must remember that water can never be regenerated. Projects such as the ones related to irrigation can never be sustainable because they do not have adequate output income. These need to be related to hydropower because the income generated from electricity can pay for such projects. If you look at the projects today, they sustain because revenue from electricity has helped make water available at affordable prices to farmers and the common people. Flood control, irrigation, fishery and electricity should go hand-in-hand wherever possible; there are many projects in Nepal which prove this point. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Have we become over-optimistic due to climate change? What does global warming mean to Nepal? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Yes, the nature provides us clean water through snow glaciers and the glacier melting is helping us provide water throughout the year. If global warming continues at the current level, it will adversely affect several parts of the world. We will have fewer glaciers of course but it will not affect Nepal much. We get rainwater in excess of 225 billion cubic meters so we are getting more rainwater than the water from the glaciers. Therefore, our water level has not receded overall. In fact, global warming has helped us have more clean water as we have been receiving greater rainfall during monsoon. A majority of Nepalâ€™s cities and towns are situated at an elevation. Hence, they donâ€™t fall in the flood-prone zone. We have over 6,300 rivers and rivulets and thousands of hills and valleys. If we could block the water in these valleys, we can conserve the rainwater and it can be a huge asset. Water is like oil (energy) for us, itâ€™s a blessing for the hydropower sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">What is your analysis of the debate on power production for external versus internal consumption? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Without any doubt, the first need is that of domestic consumption. The current load-shedding problem may seem a big issue right now but it can definitely be dealt with over the next four years or so. In fact, we will also have surplus with us which we should look at exporting. This country will collapse if we donâ€™t export hydropower in the near future because we have so much to import which we need to compensate with exports. For example, iron and steel is our most exportable item at over Rs 10 billion but the net saving is only 15 per cent as 85 percent money is spent on importing raw materials. On the other hand, if we could export hydropower for the same worth, 85 per cent of the money would stay in Nepal itself. There is huge value addition when it comes to hydropower. But if we canâ€™t use the water today, we will have new water tomorrow and it continues in that manner. We are sending precious foreign currency abroad for importing petroleum because we are not exploiting our water resources.&nbsp;&nbsp; </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Talking about alternative energy, can it be adequate for household needs? Further, do you see it contributing to industrial growth in some way? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">To tell you the truth, solar energy generates only 12 MW in Nepal which canâ€™t end load-shedding. Do you think solar energy can meet our current requirement of 2,500 MW? The solar sector was given subsidy which yielded practically no result. There would be 2,500 MW of sustainable hydropower if hydropower sector was granted the same amount of subsidy. We wonâ€™t need any battery and there would be no pollution either. However, I do agree that solar energy must exist for people living in high mountains for the sake of social justice as we cannot take electricity to those areas with the same ease as solar energy. Other alternative energy sources such as wind too cannot support any economic activity, leave alone industrialisation. There is a potential for wind energy in Mustang and Kali Gandaki corridors but why would you generate wind at Rs 10 per unit when you can do the same at Rs 5 per unit from water flowing below these very corridors. Besides, you have to invest heavily to create necessary infrastructure on top of the mountains. Saudi Arabia gets so much of sunlight but it has no solar energy. It doesnâ€™t have to look elsewhere because of its abundant oil resources. Similarly, we have hydropower in Nepal so we must focus on developing it instead of looking at the so-called alternatives that are not cost-effective at all. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has increased 20 per cent on PPA rates but you donâ€™t seem to be satisfied. What is your idea of a good deal?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">I will give you the numbers. Let me tell you that rates cannot be negotiated behind closed doors. Only a few Nepali companies can build projects upward of 25 MW individually because the high degree of technical and financial capacity required for building such projects may not be at the disposal of most companies. More than 95 per cent of the projects being built by Nepali entrepreneurs are below 25 MW capacities. These projects would produce power at only Rs 5.45 per unit for a 30-year average while 25 MW and above projects are built at a lesser cost and can generate power at Rs 7.50 per unit for the same period. Even the projects promoted by Nepal Electricity Authority (NEA) staff have been promised Rs 5.54 per unit. From a distance, it seems that 20 per cent has been increased on existing PPA rates for private sector investors. However, escalation has been brought down to five years from the earlier nine years. So, in effect, the net increase will come to 10 per cent only. After the increase, the rate has barely managed to reach Rs 6 per unit which is a discriminatory practice being pursued by the state. The so-called increase of 20 per cent for private sector investors is an illusion. We are not even asking for a rate of Rs 7.50 per unit. We are confident in our belief that if we are given Rs 6.50 per unit, besides being a rupee cheaper, some more projects may want to invest in this crucial sector.&nbsp;</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">Despite all the fuss, private sector investment is not coming forth for hydropower development. Why so?</span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">Well, nobody invests in a business to make losses and hydropower is no exception. The prospects must be commercially viable for any investment to come in. Further, the banks have invested a whopping 70 per cent of the total money involved in hydropower. If they have to additionally invest crores of rupees every year for infeasible projects, they are not going to finance. Therefore, no private sector project is going to invest willingly given the current situation barring a couple of projects who may invest to honour license validity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<strong><span style="font-size: 14px;">The government has proposed to establish a separate bank for hydropower development. Do you endorse the idea? </span></strong></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;">We have given the government a figure of 2,500 MW to end load-shedding. We need an investment of US$ 5 billion for this. So, over the next four-and-a-half years, we will require Rs 350 billion. It is only possible if we use half the amount in the banking system of Nepal which has a total of Rs 700 billion. Given this situation, the state has to bring foreign investment as it is difficult for the private sector to do so. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="line-height: 115%;">It is good to open a bank but do we really need one? It is better to have a fund manager. We have a few failed examples from the past â€“ the state floated Agricultural Development Bank which has failed to increase agricultural production in the country. Today, the farmers take the most expensive loans from this bank at a monstrous 18 per cent. Nepal Industrial Development Corporation (NIDC) promised to boost industrialisation but now all the money has gone down the drain in the industry sector. Going by these examples, what is the logic in opening â€˜another bankâ€™? c by getting funds from abroad at 1.75 per cent and give it to commercial banks, both state-owned and private sector, and ask them to invest in certain sectors. For example, they can give it to the banks at 5 per cent and ask them to invest it at 8 per cent. It will solve the problem of interest lending and fulfill fund requirement as well. The state should manage fund and monitor it accordingly instead of opening a bank and turning it into a business proposition. </span></span></div>',
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			'description' => 'Er Gyanendra Lal Pradhan, a hydropower specialist-cum-entrepreneur is an electrical engineer by training. He is currently the Executive Chairman of Hydro Solutions Pvt Ltd. He is also the.............',
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		'Article' => array(
			'id' => '411',
			'article_category_id' => '40',
			'title' => ''The Accessibility, Impact And Applicability Of Renewable Energy Is Ever  So Growing' (july 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-indent: 0in; text-align: justify;">
	<span style="font-size: 14px;"><strong>Dr Jagan Nath Shrestha</strong> is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy Society. In an interview with New Business Age, Dr Shrestha shared his views on the overall energy sector in Nepal and made a case for developing renewable energy in the wake of acute energy crisis plaguing the nation for quite some time now. Excerpts:</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><b>&nbsp;</b></span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How significant a role can renewable energy development play to minimise the effects of the current electricity crisis?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">We are having a gala time right now because itâ€™s the rainy season. But once monsoon is over, it will be back to square one â€” we will experience 14-15 hours of power outage again. As for renewable energy, I donâ€™t see a problem from such energy if we need energy only for lighting purpose. Solar electricity costs far less now compared to even three years ago. Apart from that, we have had innovations in lighting over the decades that have helped us reduce energy consumption. These have helped in household energy consumption.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">However, the major impact of the current energy crisis is on industry, which needs a lot of energy. We need 1,100 gigawatt hours of energy for the industrial sector which is about 40 per cent of the total electricity produced by Nepal Electricity Authority (NEA). I do see a couple of options to save our industries though. NEA has close to 1.77 million subscribers of which 1.2 million are households that consume very little energy as in these households it is mostly used for lighting purpose only. If we could equip these households with 100W solar panels, we can easily save 500 gigawatt hours which can be diverted to industry. For this, we need appropriate policies. In this manner, we can save our industries from a complete collapse.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">If all the investment in setting up solar power system in the households is to come from the government, there will be problems. It will probably take billions of rupees to provide 100W solar panels to these 1.2 million households. But if these households are made ready to share some of the investment, the problem can be reduced to a great extent. The government, on its part, can help by providing tax relief and subsidy of some kind. This will definitely encourage many people to opt for solar energy. On the other hand, NEA wonâ€™t have to lose because the industries are there to make up for NEAâ€™s loss of customers.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">But, let me caution that even though it looks very simple, its management may be complex. This calls for a blend of engineering technology and management art. Technologists or managers cannot produce results working separately, they should complement each other.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you see the priority given in Nepal to research and development (R&amp;D) in the energy sector to tackle existing energy shortage?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">A lot of R&amp;D in the energy sector is being done in advanced countries on a continued basis. I cannot say how practical it is for a developing country like Nepal to do the same. What Nepal could probably do is to identify suitable energy resources for different areas and decentralise energy utilisation in the country. It is definitely a challenge for our universities and research institutions to conduct research for actualised energy applications. The outcome of this research should benefit the communities across the country and create employment. At the same time, such a study should look at protecting the environment. The energy must be efficiently used in a productive way.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">What are the major impediments to the development of energy sector in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">There are two sides of the coin. We either have too many energy experts who know all about it but canâ€™t agree with each other or we donâ€™t know anything about energy development at all. I personally believe there are people in Nepal who have a lot of knowledge and ideas about the energy sector. However, they have not been able to work independently from the government or other agents. And, the characteristic of this group is disagreement among themselves. My request to these experts is: first ensure a position where we can generate about 3,000 MW for fulfilling the basic need of the households and of the industries. Once this objective is met, there is no harm on agreeing and disagreeing on numerous other counts. But till that time, all the experts must work out a consensus and stick to that. A disagreement among experts puts the government in a bind.&nbsp;</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How do you view the debate on whether to produce power for export or for consumption within the country?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Of course, our focus should be to first meet domestic needs,. But, if we do manage to produce surplus energy, we should definitely export. However, in todayâ€™s context, how can we export when we donâ€™t have enough for ourselves? Take Bhutanâ€™s example: it invites foreign countries to invest in its hydropower development and puts some conditions on such investments. It wants them to produce as much energy as possible but allows them to export only when the countryâ€™s internal needs are fully met. On the other hand, we are talking about exporting power while the power outage hours are ever increasing. Nepal has a problem with capital. It takes a lot of money to develop hydropower but Nepal does not have that money. An investor will definitely want to see how he can recover his investment. My opinion is that Nepal should be self-sufficient in power first. While not wanting to export is an extreme view, we also cannot talk about exporting everything that we produce.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How is the possibility of alternative energy sources meeting the industrial needs of Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">The perception that renewable energy cannot help industries is wrong. It all depends on the size and location of an industry. A medium scale industry may require anything between 500 KW and 10 MW. If such an industrial unit is situated near a micro or mini hydro plant, its energy needs may be fulfilled. Similar may be the case if the industry is located near a windy place or where there is plenty of sunshine. We can ascertain the energy feasibility for an industry after taking its size, nature and location into account. Talking about solar electricity, an average of 4-5 kilowatt hour per square metre per day can be generated in Nepal. During daytime, we can use solar energy directly. It can also be stored and used in the night or when there is no sunshine.</span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Which one will be the most economical source of energy for a particular industry?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.15pt;">After studying the energy needs of an industry, the most economical, beneficial and rewarding renewable energy option can be determined and worked upon. We must give priority to hydropower if it can be generated in a sustainable manner. Besides being economically feasible, hydropower can supply energy reliably when the concentrated power requirement is high. Comparatively, renewable energy may not be available when needed. Though, of course, it varies from case to case. There are many industries in the world which run completely on renewable energy. It is not only about solar or wind energy; it could be derived from biomass, agricultural and municipal waste also. The advanced countries rely on renewable energy because they care about environmental degradation, global warming, pollution etc. They focus on economic development, energy security and environment protection. Solar energy can be adequate for household needs, especially for lighting purposes. I know of households in Nepal who spend as much as Rs 800 per month on candles against Rs 80 for electricity. This is where micro-financing can come in and help such families to install solar panels worth Rs 3-4,000. The accessibility, impact and applicability of renewable energy are ever so growing because energy consumption of electronic devices has come down to from about 1/4th to 1/100th. Renewable energy has become a feasible option in urban areas as well. I personally feel that people have to become conscious and inculcate a habit of conserving energy. Every kilowatt hour of energy saved is equivalent to one kilowatt hour generated. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">How important is bio-gas production given the amount of organic garbage generated in Nepal?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><span style="letter-spacing: 0.1pt;">Bio-gas potential is immense. More than 250,000 bio-gas plants have been established so far mostly in remote areas where there is no electricity. A six cubic-meter bio-gas plant can generate thermal energy equivalent to one standard LPG cylinder in about 24 days. For the sake of drawing a comparison, you can say that bio-gas is providing 250,000 LPG cylinders worth of energy in the country. This is certainly an achievement and we can take&nbsp;this even further. Cow dung was used for operating bio-gas plants earlier. But a lot of experimentation has led to a state where anything bio-degradable is equivalent to cow dung. Therefore, we can certainly increase the number of bio-gas plants in Nepal. More than 70 per cent of the waste coming out of big municipalities is bio-degradable. We must process this waste and generate energy rather than sending it to landfill areas. The problem is that the waste does not get collected in a segregated manner. We must find ways to sort bio-degradable waste right at the source. Keeping different garbage containers at the source can save segregation cost as the users will throw the â€˜right wasteâ€™ in a designated container. Sewage treatment is a serious practice in most cities of the advanced countries. The water is drained out in the river after removing bio-degradable waste from it and purifying the water. Waste management is absolutely crucial in the present context. </span></span></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;"><br />
	</span></div>
<div style="text-align: justify;">
	<strong><span style="font-size: 14px;">Whatâ€™s the current state on private sector investment in renewable energy? What can be done to make this more adequate and on a bigger scale?</span></strong></div>
<div style="text-align: justify;">
	<span style="font-size: 14px;">Private sector invests in a sector where it sees a profit. Its investment in renewable energy will happen once there is a healthy competition in the energy sector. The government doles out billions of rupees to buy petroleum products when prices get higher whereas the subsidy to micro-levl hydropower, solar and wind energy projects, for example, pales in comparison. Given this scenario, private sector investment in renewable energy is a distant dream. The government is biased towards petroleum products instead of letting them compete with other energy sectors. There should be a level playing field. The subsidy given to proven renewable energy technology is inadequate and impacts adversely the opportunity for private sector investment. The government should proactively employ proven technologies instead of giving subsidies. For example, the price of electricity sold by NEA has not increased in the last decade or so. Renewable energy sources cannot provide power at the NEAâ€™s low rates , which are highly subsidised. Therefore, itâ€™s no surprise that the private sector does not want to invest in renewable energy. They wonâ€™t get the desired returns. We need to correct the situation and ensure a level playing field to lure the private sector to invest.</span></div>',
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			'created' => '2011-09-05',
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			'description' => 'Dr Jagan Nath Shrestha is a Professor and Council Member at Centre for Energy Studies, Institute of Engineering, Tribhuvan University. He is also the President of Nepal Solar Energy............',
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	(int) 14 => array(
		'Article' => array(
			'id' => '379',
			'article_category_id' => '40',
			'title' => 'URBAN HOUSING HOME IN HIGH-rises(june 2011)',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="margin-bottom: 0.0001pt; text-align: justify; vertical-align: middle;">
	<span style="font-size: 14.5pt;">T</span><span style="font-size: 9.5pt;">he conventional system of owner-built housing is still predominant but with the growing demand for land-for-house, the Kathmandu Valley is experiencing a space-constraint in recent times. It is becoming increasingly difficult for people to find suitable land to build individual residences on. However, inducing paradigm shift is a substantial challenge to overcome the tradition of building oneâ€™s own house. Vertical living, due to its sheer nature of accommodating multiple units, promises to become the preferred lifestyle option for many.&nbsp;Currently, the housing industry of Nepal is worth an estimated whopping Rs 200 billion. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">A total of 54 companies have received permission for construction of community or collective housing so far in the three districts of the Kathmandu Valley. These companies have received the nod to build 3,633 units of family residences against a demand of 30,000 units which is expected to exceed well over 40,000 units each year in the valley by 2020. While fiscal years 2007-08 and 2008-09 saw the highest number of new projects registration, 2009-10 had very few registrations and 2010-11 has no new projects initiated owing to lack of investment on the part of banks and financial institutions (BFIs). Om Rajbhandary, the CEO and Chairman of Comfort Housing Pvt Ltd reveals, â€œSome approved projects have continued to progress while some others have slowed down, delayed or downsized.â€ </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Current Scenario</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The overheated housing market has shown signs of meltdown intensifying the apprehension of the speculative investors leading to the BFIs losing sleep over huge loans issued to the housing developers. With the BFIs tightening issue of new loans and aggressively pursuing recovery of past loans, it will take a while before the now stagnant housing market bounces back, a developer opines. The BFIs had invested aggressively to begin with but the current slump has left them anxious due to their huge loan portfolio for the housing sector. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Even though the housing industry is going through a difficult period, entrepreneurs take solace from the fact that scarcity of land along with a sense of security ensured by apartment complexes is bound to hold the business in good stead in the foreseeable future. The intended dwellers too are gaining confidence and slowly gravitating towards the concept of community living of late. On an average, the prices of apartments vary from anything between Rs 6 million to well over Rs 10 million. However, some companies have recently introduced economy flats costing about Rs 1.7 million.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Realtorsâ€™ Perspective</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Itâ€™s about time the term â€˜realtorâ€™ came into force with obtained legality if Nepalâ€™s housing sector were to register a positive growth. The Nepal Land and Housing Developersâ€™ Association (NLHDA) has proposed the government to issue â€˜licence to operateâ€™ tag so that only the licensed realtors have the right to ply the trade. It will regulate the housing sector to a great extent and bring the realtors within the taxation bracket. Till now, the sector has been operating on an ad-hoc basis in the absence of concrete bylaws, says Ichha Raj Tamang, the President of NLHDA. He adds that the private housing projects have also been suffering from lack of proper legislation on housing development â€“ an effective â€˜code of ethicsâ€™ and â€˜property transaction actâ€™ are much desired for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Majority of the construction work is being carried out in a haphazard manner and in unplanned areas. NLHDA has urged the authorities to strictly regulate the construction business to address the ever-growing demand of urban construction and check the blatant use of landscape for its vertical growth. NLHDA has recommended that housing development be sought through land pooling projects. It will help plan a particular area right from the outset and thus ensure desired infrastructure required for residential colonies and apartment complexes. The painfully lengthy process of acquiring licenses is another impediment towards the smooth functioning of the sector. To address this issue, the developers have been asking the government to facilitate a one-door licensing process.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The ceiling imposed on realty lending by the Nepal Rastra Bank (NRB) resulted in a slowdown of the housing sectorâ€™s growth. The central bank had directed BFIs to limit lending exposure to the housing sector to 25 per cent of their total investment portfolio. It had done so to deal with the fast inflating realty bubble. At odds with each other not too long ago, housing developers and bankers now collectively look at ensuring smooth recovery of realty lending. According to bankers, the current slowdown in the housing sector has much to do with the mismatch in demand and supply. The construction of apartments has continued unabated while their performance in terms of selling the properties has been dismal. Building trust among the targeted buyers is of vital importance too because people still havenâ€™t come to terms with trusting realty developers.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Housing entrepreneurs who resisted selling for fear of descending price levels have now started to slash prices â€“ as much as 30 per cent â€“ to tempt buyers and recover their investments. Despite transactions nose-diving, the developers had hoped for a recovery but are now finding it hard to entice buyers even at reduced prices. The slowdown in realty has affected the BFIsâ€™ performance as their loan portfolio is hugely dominated by the housing sector. Quite naturally, despite committing long-term lending to the sector, the banks have now started to exert pressure for early repayment in an attempt to minimise their realty loan exposure. Currently, the total investment in the housing sector is Rs 97 billion which is 18.9 per cent of the total investments made by the BFIs, states Bhaskar Mani Gyawali, the NRBâ€™s Executive Director â€“ BFI Regulation Department.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Central Bankâ€™s Influence and Government Policies</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing industry has been facing a crisis-of-sorts ever since the NRB issued stern directives in an attempt to prevent simulated skyrocketing prices of housing properties. The mandatory provision of declaring income source for purchase of properties worth a certain amount is another major hiccup. The hike in interest rates on loans from 9 to 17 per cent has further compounded the prevailing miseries. These are just a few among the many bottlenecks that have blocked the desired growth of the housing sector, industry entrepreneurs lament. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The governmentâ€™s imposition of capital gains tax on housing transactions, too, has drove away buyers. It is but understood that revenue mobilisation through taxation is the primary objective of the government. Therefore, it comes as no surprise that the government has hiked property tax as well. Besides, the NRB also wants to minimise the speculative aspect of the housing business to prevent the bubble burst. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Buyersâ€™ Viewpoint</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Unreal prices of apartments coupled with increasingly higher interest rates on home loans have made it extremely unaffordable for the general public to purchase new properties. And those who can afford are not too sure about the safety standards of these vertical structures especially with the imminent threat of an earthquake hitting the country anytime. They know that there are some developers who are out there to make a fast buck ignoring the threat to peopleâ€™s lives in the event of a natural calamity. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">However, the central bankâ€™s decision to create a separate category for home loans of up to Rs 6 million as â€˜personal home loansâ€™ has come as a respite and is widely appreciated. It has also provided a fresh lease of life to the low-lying housing sector. With some developers claiming to have sold a good number of units the moment the properties are opened for booking, rumours of artificial transactions have kept the consumers at bay. â€œThe buyers also expect a certain amount of transparency on the part of the developers to avoid the situation of investing money where the developers havenâ€™t put any,â€ says Ashoke SJB Rana, the President of Nepal Bankersâ€™ Association. Having a transparency mechanism will enable the buyers to assess the developersâ€™ strength and give them confidence to invest. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Building Parameters</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The Department of Urban Development and Building Constructionâ€™s (DUDBC) monitoring mechanism ensures that the apartment complexes are designed as per established specifications to meet safety requirements. It also warrants the size of open space, size and number of units, road access and ground coverage among others. The department is responsible overall to guarantee the completion of procedures on part of the developers before commencing construction. Nepal is the 11th riskiest earthquake zone in the world and the Kathmandu Valley itself is located in one of the worldâ€™s most seismically active zones. This makes it imperative for the developers to plan appropriate structural designs and adhere to the National Building Code.</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">The housing companies acquire their licenses only after fulfilling the required procedures. The developers get planning permit from the Town Development Committee (TDC) based on existing regulations and by-laws. The apartment buildingsâ€™ plans and designs that meet the National Building Code on safety, electricity, parking space, fire, other disasters and structural design are later approved by the DUDBCâ€™s division office, informs its Deputy Director General Shivahari Sharma. The projects also need to pass the Environmental Impact Assessment (EIA) for big scale ventures and Initial Environment Examination (IEE) for the smaller ones. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for the Masses</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">While the housing companies have been primarily catering to the needs of the wealthy, the lower middle class and the poor still cannot afford the properties developed by these companies. Therefore, though the housing business is providing shelters, it has overlooked the needs of the urban poor. In contrast, housing projects in a lot of countries look at addressing the needs of the economically weaker section of the population on a prioritised basis. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Housing for Foreigners</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Nepal can very well attract foreign direct investment (FDI) by allowing ownership of apartments to the expatriate community living in Nepal. The government has floated an idea to this effect to let foreigners buy apartments for residential purpose. A preliminary plan has already gathered shape for this purpose. If this turns into reality, it promises to resurrect the housing industry and lend dynamism to the construction sector. Since the housing sector needs fresh capital injection to keep the momentum going, allowing foreigners to buy apartments could hold it in good spirit. This will make the sector more financially viable and generate greater employment courtesy the construction boom. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 11.5pt;">Looking Forward</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œThe government must give the housing sector the importance it deserves and treat it as a national priority,â€ says Rajbhandary of Comfort Housing. Provision of affordable housing in partnership with the private sector and making newly constructed and under construction buildings safe for residential purpose will be critically important in the days to come. Quality urban housing is at the heart of the struggle to accomplish enhanced living standards. Till about a decade ago, there were limited developers but today, the consumers have a varied choice in the nature and price of the products. Along with the demand, appropriate products, for example, low priced houses are bound to enter the market sooner than later. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">If all existing problems settle with time, investing in a developer-built property can prove to be a sound idea because it spares one the hassle of managing sewage, construction materials and labour, water, electricity and TV cable connections and is more secure and comfortable, in general. The developers too would do themselves no harm if they adhered to safety standards and practiced customer satisfaction for a market that is on the course of getting matured. The hugely untapped potential of budget housing holds much promise because thatâ€™s what the largest section of buyers is waiting for. </span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="text-align: justify;">
	<span style="font-size: 9.5pt; line-height: 115%;">Given the scarcity of land and the ridiculously high prices of the little land available within the city limits, there will be no option other than to grow vertically, says Umang SJB Rana, the CEO of Westar Properties. Nepalâ€™s urban population is expected to rise 18 per cent by 2015 and 30 per cent by 2030 which underlines the huge potential and a promising future for the housing sector. By correctly identifying the target segment, developing feasible projects, introducing right products at the right time and strategising marketing efforts in accordance will certainly ensure that the housing business is here to stay. Investors who are buying properties only for secondary transactions instead of residing in them end up creating â€˜ghost housesâ€™ galore. It would be great if the apartment complexes and housing colonies find buyers who are actually interested in turning them as their â€˜homesâ€™. The day is not too far when we shall see vertical structures dominate Nepalâ€™s urban landscape all over. </span><span style="font-size: 6.5pt; line-height: 115%; color: rgb(237, 28, 36); letter-spacing: 0.05pt;">n</span></div>
<div style="text-align: justify;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Brihat Community Living - Sitapaila</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">â€œEco-friendly homeâ€ is an achievement for the urbanization, to achieve one goal - to create a home which is â€˜friendlyâ€™ to its inhabitants and sympathetic to the environment in which we live. Our Project incorporates a range of eco-friendly products and concepts.</span></div>
<div style="margin: 5.65pt 0in 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Its main features include:</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">1. Solar electricity provision â€“ for streetlights</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">2. Rain water recharge for water conservation</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">3. Proper garbage disposal system for waste reduction</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">4. UV protection sticker on south facing windows</span></div>
<div style="margin: 0in 0in 0.0001pt 9pt; text-align: justify; text-indent: -9pt; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9pt;">5. Use of concrete lightweight blocks in place of bricks- for reduction of carbon monoxide emission and conservation of clay</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Owned &amp; Marketed By:</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	Â </div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">TCH Tower - IV, Ground Floor, Block - A</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Sitapaila, Kathmandu, Nepal</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Tel: +977 1 4282086/4286821</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">Fax: +977 1 4288820</span></div>
<div style="margin-bottom: 0.0001pt; text-align: justify; line-height: 11pt; vertical-align: middle;">
	<span style="font-size: 9.5pt;">E-mail: info@brihatinvestments.com</span></div>
<div style="text-align: justify;">
	<a href="http://www.brihatinvestments.com/"><b><span style="font-size: 9.5pt; line-height: 115%;">www.brihatinvestments.com</span></b></a></div>',
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FOREX

Currency	Unit	Buy	Sell
U.S. Dollar	1	121.23	121.83
European Euro	1	131.65	132.31
UK Pound Sterling	1	142.47	143.18
Swiss Franc	1	124.29	124.90
Australian Dollar	1	71.69	72.05
Canadian Dollar	1	83.90	84.32
Japanese Yen	10	10.94	11.00
Chinese Yuan	1	17.17	17.26
Saudi Arabian Riyal	1	32.27	32.43
UAE Dirham	1	33.01	33.17
Malaysian Ringgit	1	27.36	27.50
South Korean Won	100	9.77	9.82

Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)

Bullion

Fine Gold	1 tola	77000.00
Tejabi Gold	1 tola	76700.00
Silver	1 tola	720.00

Update : 2020-03-25

Source: Federation of Nepal Gold and Silver Dealers' Association

Petroleum

Petrol	1 Liter	106.00
Diesel	1 Liter	95.00
Kerosene	1 Liter	95.00
LP Gas	1 Cylinder	1375.00