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			'title' => '‘We Must Have Small Number Of States For Financial Feasibility’',
			'sub_title' => '',
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			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Bijaya Nath Bhattarai.jpg" style="width: 153px; height: 173px;" vspace="2" />Bijaya Nath Bhattarai</b></div>
<div style="text-align: justify;">
	Former Governor, Nepal Rastra Bank</div>
<div style="text-align: justify;">
	The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the monetary aspect of federal Nepal?</strong></div>
<div style="text-align: justify;">
	Nepal Rastra Bank (NRB) is the authority for all monetary issues in Nepal. NRB has its branches and sub branches spread all over the country. It not only works as a fiscal agent but also facilitates commercial banks through operating currency chests. It regulates the money supply, flow of liquidity and supervises and regulates banks and financial institutions. In the federal structure too, the currency in use will be the same and there will be a solitary central bank which will be responsible for providing all central banking functions to every state in the country. There won’t be separate currencies for individual states. But all monetary issues should be controlled by a central regulator i.e. Nepal Rastra Bank.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>In a federal structure, the state revenue, expenditure and debts will have to be shared between central and local governments. How practically feasible will this be for Nepal?</strong></div>
<div style="text-align: justify;">
	As far as I know, the countries with federal structure have different forms of taxation. Some are levied by the central government while some others are at the states and municipal levels. There are three types of taxation. The municipal taxes would be the income of the particular municipality. Similarly, state taxes would be the revenue of the states. The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley. Then come the Terai hubs namely Bhairahawa, Biratnagar, Birgunj and Nepalgunj followed by towns like Pokhara and Hetauda. The economic activities in other areas are minimal. Therefore, resource mobilisation and sharing will be difficult proposition for federal Nepal. On the question of debt management, there needs to be an agreement on issuance of debt, use of debt and final repayment of debt. Most of the country’s debt issuance and repayment is at the central government level.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The rising recurrent cost is already eating up the country’s revenue generation capacity. With governments at the provincial levels, the overall administrative and recurrent public expenditure is likely to shoot up with no commensurate growth in revenue. Wouldn’t this be an alarming situation?</strong></div>
<div style="text-align: justify;">
	Resources remaining after fulfilling the recurrent expenditure are used in development activities. This is supplemented by the resources and means obtained from foreign aid and loans for development activities. The resources thus mobilised would be further divided in the federal system. Then there would be chances for even less resources and means left for development projects. The revenue grows along with the economic development of the country. If the country under federal system moves ahead and develops economically, the national income will grow. We can take Switzerland as an example where the per capita income is around US$ 34,000. But our country’s situation is such that federal structure can actually lead to resource crunch. The far western region, especially Karnali, is least developed. There are other under developed regions too where the conflict had escalated due to unequal distribution of income and resources. In such areas, the resources injected have to be comparatively higher. This would leave very little resources at the centre’s disposal. It would be ideal to have a small number of states and small state structures. Only then will we be able to mobilise resources effectively. At present, I see a faint possibility of introducing new forms of taxation for increasing resources. During the past decade or so, there have been very few new investments. Even now, the investment environment is gloomy for domestic as well as foreign investors. Foreign aid and internal resources mobilised by the state have not been effectively utilised. As a result, there is a liquidity crisis in the financial sector. The government has not been able to address budgetary issues well. There is fiscal imprudence which is reflected by large non-budgetary expense at the central level. It will be necessary to maintain strict fiscal discipline in a federal system. The non-budgetary expense has to be lowered to a minimum. If we can do that and utilise resources effectively for development, the situation may improve over the years as the economy will then grow. However, the current resource distribution pattern could invite complications.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>How can we decrease current expenses so that more resources can be allocated in development activities?</strong></div>
<div style="text-align: justify;">
	We have very limited resources. So, when we want to divide them among the centre and the states, there could be complications. While making a transition to the federal structure, we should make sure that the structure envisioned by the constitution is small and dynamic. For example, there are more than 600 representatives in our existing Constituent Assembly. This number is massive given the size of our country. Compare this figure with our neighbouring country India which has 552 members in its lower house of parliament. It is said that our federal parliament will follow a bicameral system, for greater representation of every region. The number of representatives should be brought down significantly from the present one to ensure low governance costs. Also the size of the provincial government must be small and effective. If this is not ensured, very little resources would be left for development activities after dividing them among central and regional governments.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>There has been no real debate on the economics of Nepal’s federal structure. Given this, how can we be definite about the direction we are heading?</strong></div>
<div style="text-align: justify;">
	I agree that there must be a serious debate on this issue. The statesmen and the CA too have not discussed fiscal federalism seriously. Major issues such as the availability of resources and means and the model of federal structure must be discussed now. I personally feel that without serious debates, going for federalism might backfire on the country in the long run. Nepal has limited resources. Therefore, the demarcation of states based on ethnicity could prove to be a dangerous proposition. It will definitely promote ethnic conflict among our own people. And we definitely don’t want Nepal to follow the example of Yugoslavia. The states must be divided based on economic reality.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What reforms do you think are required once we go federal?</strong></div>
<div style="text-align: justify;">
	Well, there are a lot of things that need to be reformed. Our GDP and tax ratio are lower compared to many countries. We can look at increasing tax compliance. In the recent past, media has reported tax evasion by big business houses. All citizens must feel that paying taxes is their duty and it should not be evaded. Greater tax generation will enable the state to mobilise adequate resources for development and social causes. Nepal has started providing social security allowances for elderly people. In the coming days, the state can offer free medicines and health services to the economically deprived people. For that, a sense of responsibility in people must develop to ensure tax compliance. If the government can take the role of a facilitator and focus its investment in infrastructure, Nepal can experience a prosperous economic development. The problems that we face today are that of infrastructure, labour relations and power. As per reports, around 200 small industries have closed shop owing to power shortage. Similarly, many industries have experienced decline in output due to labour unrest. The political parties must unite for national and development issues irrespective of their ideological differences.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Being one of the poorest countries in the world where there is little revenue left for development after incurring current expenditures, can we afford a federal form of government?</strong></div>
<p style="text-align: justify;">
	If we see economically, it is very difficult due to the resource constraints. As and when we enter the federal structure, it will be necessary to differentiate federal and state taxes. Let’s take the example of the USA where the sales taxes are collected by the states. Similarly, the municipal and income taxes are collected, respectively, by the municipalities and the federal government. Our main sources of revenue are VAT, customs duties and income tax. The land tax, rental tax and other smaller taxes are collected by the municipalities. I think the problem in Nepal arises due to centralisation. The rights must be decentralised. If small structure and decentralisation of rights can be ensured, there is no need to create new states in the name of federalism. There are districts where there have been no economic and development activities. We have seen in the past also that the situation of conflict was invited by economic inequality. This inequality is due to the imbalance in economic opportunities for different regions and the failure of implementing economic development plans. The mid western and far western regions are the most backward regions of the country. Despite huge potential, Karnali region remains grossly underdeveloped. If the planners in the past had successfully taken the decentralising path, the people wouldn’t have been left dissatisfied. This happened due to huge economic disparity between the various regions. An economically decentralised country holds more promise than a&nbsp; federal structure.</p>',
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	(int) 1 => array(
		'Article' => array(
			'id' => '268',
			'article_category_id' => '40',
			'title' => '‘Development In One Region Should Complement Development In Another’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Pitamber Sharma.jpg" style="width: 163px; height: 182px;" vspace="2" />Dr Pitamber Sharma</b></div>
<div style="text-align: justify;">
	Geographer and Regional Planner</div>
<div style="text-align: justify;">
	There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The interim constitution says that the states, once created, must be autonomous. To ensure such autonomy also in the economic field, the states must have ample resources. How do you see the feasibility of such economic autonomy of the proposed states?</strong></div>
<div style="text-align: justify;">
	Being self-reliant will depend on the number of states and the criteria on which they will be created. In Nepal, autonomy is interpreted only in the political sense. It is often forgotten that political autonomy remains circumscribed in the lack of economic autonomy. If a state or province has to rely on the centre for all its development needs, how can it exercise autonomy in political or economic decision-making? All states may not have all the resources. However, care should be taken that each state is carved, as much as possible, in a way that it has at least some basic resources to complement its development efforts. There are 14 states proposed by the Constituent Assembly’s state restructuring committee. Many of these proposed states are simply not viable economically or politically. I believe that in Nepal we still have enough scope to design states as planning units. The foresight we show today will make it easier to deal with the problems of tomorrow.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the appropriate geographical delineation for distribution of natural resources among the new states?</strong></div>
<div style="text-align: justify;">
	Nepal is a country with enormous geographical and topographical diversity. This diversity in many ways has determined the type and distribution of natural resources. The Terai plain as well as the Inner Terai are rich in agricultural resources. This area also has a unique wildlife. Similarly, the hills and mountains are rich in biodiversity resources, hydro power, nature- and culture-based tourism resources etc. The element that links and complements the geographical diversity between the hills and the plains is the hydrological system – the major river basins of Nepal. There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources. However, we do not live in an ideal world. While natural resource endowment is important, equally important are the historic aspirations of the diverse communities that inhabit the different regions. These aspirations also need to be addressed in the formation of states. Nepal’s move from a unitary state to a federal one is dictated in many ways by these aspirations.<span>&nbsp;&nbsp; <br />
	<br />
	</span></div>
<div style="text-align: justify;">
	In a country like Nepal, the crux of the issue of federalisation is that the development in one geographical and resource region has to complement the development of another region. That is the basis on which the resources need to be considered in designing federal states.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Some political parties are strongly raising the demand for states based on ethnicities. How challenging will it be to manage and distribute the resources along these lines instead of geography- and resource-based states?</strong></div>
<div style="text-align: justify;">
	The political discourse on federalisation in Nepal has been dominated primarily by the issue of ethnicity. Not much attention has been paid to the attributes of an ethnic state, or even what comprises an ethnic state. Some people are scared of the word ethnicity altogether. The reality is that ethnicity makes a significant difference in the lives of people.&nbsp;Nepal has 100 designated ethnic groups according to the 2001 census. And there are 92 languages spoken in the country. Major ethnic/caste groups in Nepal have their territories of traditional habitation. The groups have settled continuously, are relatively concentrated, and have a significant and dominant, if not majority presence in particular areas. This is true for all large and small aadibasi and janajati groups and the Chhetris. However, the dalits do not have their own distinguished geographical territory or a separate identity by virtue of language.&nbsp;This is in spite of the fact that they comprise the third largest ethnic/caste group and the most marginalised population in Nepal.<br />
	 </div>
<div style="text-align: justify;">
	If all major ethnic groups in Nepal were to have their own states, it would be an enormous challenge to manage and distribute natural resources. Ethnic boundaries rarely coincide with resource boundaries. Even macro watershed would be divided among different ethnic domains. All hydropower resources would be in the domain of hill/mountain ethnic groups, with none in the Terai. The capacity of ethnic states to deal with the issues of mitigation and adaptation to climate change would be extremely limited. It is because this would require a coordinated watershed level response.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you think that the redistribution of resources may ignite resource conflict after the formation of new federal states?</strong></div>
<div style="text-align: justify;">
	As I have mentioned earlier, much would depend on the criteria used in the designation of states, and of course the number of states created. The experience of other countries show that conflicts over control, regulation, use, benefit and maintenance of resources, particularly water, are among the common conflicts resulting from federalisation. Constitutional provisions are therefore made for arbitration and resolution of such conflicts. (Highlight.) The redistribution of resources is ensured mainly through inter-governmental transfers. However, to assure that the central government has enough resources to offset imbalances between the states, some clarity is required with respect to the share of local/state revenue going to the central treasury.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, you think the 14 states proposed by the CA’s State Restructuring Committee is not practical?</strong></div>
<div style="text-align: justify;">
	The idea of 14 states proposed in the draft report of the Constituent Assembly’s State Restructuring Committee, in my view, is neither rational nor appropriate. For a country of Nepal’s size, 14 states will be too many.&nbsp;If ethnicity is the only criteria considered for the designation of states, I see no justification for at least four of the proposed states.&nbsp;Jadan has a population of 50,000 while Bhotes comprise only 1.2 per cent of Nepal’s population. Sherpas total only 90,000 people and a mere 21 percent of Nepal’s total Sherpa population live in the proposed state. Additionally, Sunkoshi and Narayani have as mixed a population as any other ethnic state. One of the major problems with the report is that it does not lay down any principles for states’ formation. For example, when does an ethnic group merit the status of a state as opposed to an autonomous region within a state?<span>&nbsp;&nbsp; The report does not provide answers to these kinds of questions.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Running and maintaining the state affairs is a costly proposition. How would the states help in mobilising resources for the nation while meeting their own recurring costs?</strong></div>
<div style="text-align: justify;">
	At present, only nine among the 75 districts are in a position to generate revenues that go beyond meeting their recurrent expenditures. In other words, if all the proposed states of Nepal are to be in a position of meeting their recurrent expenditures and generate a surplus, it is basically from the revenue from these nine districts that will have to be somehow apportioned among the states. As I said earlier, inter-governmental transfers will have to play the key role in maintaining the financial viability of the states. Inter-governmental transfers should ensure that (a) all expenditure assignments of the states can be met through these grants and (b) that it should also provide the basis for basic long-term investments required for mobilising resources. In Nepal’s case, for example, the states falling under the current mid and far-western regions will need massive investments from the centre for at least 10 to 15 years, by which time they could be self-sustaining. Investments by the centre on key infrastructures in the state will remain crucial. One of the problems that the state governments in poorer states will have to face is the flight of capital as capital flies out from low-yielding states to high-yielding states. A situation can easily arise where the poor states become poorer while the rich ones become richer. This will emerge as a big challenge in the management of federalism. The success of the federalism enterprise may as well lie in the extent to which they are enabled to mobilise resources.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What may the reason that there is no meaningful debate taking place on state restructuring and the form of federal system?</strong></div>
<div style="text-align: justify;">
	The political parties are ignoring the most critical and operational issues of federalism. It was Maoists who raised the issue of the federal republic and turned it into a national agenda, and they did it right. The rationale for the federal republic was to break, once and for all, the shackles of a feudal, overtly centralised, monarchic, predatory state. This was a historic achievement. For the first time in nearly two-and-a-half centuries, it set the stage for redefining and reimagining Nepal. But the Maoist perception went astray because of taking ethnicity as the sole basis for federalisation. As a result, the question of resources, development and meaningful devolution of power remained ignored. The two other major political parties – the UML and the Nepali Congress – are still taking time to fully own the idea of a federal Nepal.&nbsp;It is evident from their reactive approach to the whole issue, so much so that their official positions are not yet clear. The Madhes based political parties too made the federal agenda their main political plank. But they only took it as far as it challenged the colonial flavour of the policies of the hill-centred Nepali state vis-a-vis the Madhes. The ‘one Madhes, one state’ slogan was raised as a vehicle for economically circumscribing the hills and making it a hostage of the Madhes, however defined. The ethnic dimension is critical and important but no less important is the issue of dealing with poverty, exclusion, and in a fundamental sense, the mode and meaning of development. The two issues are no doubt linked but one cannot be a substitute for the other.<br />
	 </div>
<div style="text-align: justify;">
	Thus the debate has centred on issues of identity and emotion rather than the more substantive issues of strategy and resources for development. I believe that once the dust settles and the states come into being, development will once again emerge as the agenda around which politics will revolve.<span>&nbsp;&nbsp; </span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What should be the main objective of federalism in Nepal’s context?</strong></div>
<div style="text-align: justify;">
	The objective of federalism in Nepal should be the creation of a prosperous country which will benefit all, irrespective of ethnicity, caste or class. The rational for federalism in Nepal has to rest on three premises. The first is the recognition of the ethnic, linguistic, cultural and regional identity and aspirations of the diverse population groups that inhabit Nepal. For over two centuries, the Nepali speaking, upper caste hill dwellers following the Hindu faith namely Bahun and Chhetri enjoyed the privileged patronage of the Nepali state.&nbsp;Shared ownership of the state requires that progressive ethnic, cultural and regional identities are given due recognition. The second is to facilitate rapid, equitable and inclusive development so that livelihoods of all, and particularly of the vulnerable, marginalised and disadvantaged groups, can be rapidly improved. This requires that adequate attention is paid to natural and human resources that can provide the basis for equitable and inclusive development. The third is to decentralise and devolve power to the lowest possible level so that the roots of a truly participatory and accountable democracy are strengthened.</div>
<p style="text-align: justify;">
	Two concepts, I believe, can help us move towards a federalisation that takes identity, inclusive development and devolution as the point of departure.&nbsp;The first is the concept of ethnic/caste groups that have suffered from historic discrimination and have a dominant presence in geographically adjacent and contiguous areas. The second is the concept of special autonomous areas. Following the first concept, federal units can be formed around a few major ethnic/caste/language group habitats that have historically remained in adjacent or contiguous areas, and have developed a sense of ethnic affinity over time. Such federal units can incorporate areas with existing or potentially sustainable natural resource as well as economic base. Following the second concept, special autonomous areas can be designated within federal units with particular ethnic/caste dominance.</p>',
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			'id' => '267',
			'article_category_id' => '40',
			'title' => '‘Political Parties Must Honour The Constitutional Provision And Form State Restructuring Committee',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Prakash Chandra Lohani.jpg" style="width: 162px; height: 180px;" vspace="2" />Dr Prakash Chandra Lohani</b></div>
<div style="text-align: justify;">
	Former Foreign and Finance Minister and Co-Chairman of Rastriya Janashakti Party</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it.<br />
	 </div>
<div style="text-align: justify;">
	<strong>The state restructuring committee has not been formed yet. What are the reasons behind it?</strong></div>
<div style="text-align: justify;">
	It is clearly specified in the interim constitution that we should have a state restructuring committee. So, it is the responsibility of the government as well as of the political parties to ensure that the state restructuring committee is formed. The government as well as the major political parties have not fulfilled this responsibility. In fact, the state restructuring committee should have been formed while the Constituent Assembly was in its first session. The fact that this has not been done as yet is a reminder of our negligence towards the constitutional provision. I think when Pushpa Kamal Dahal was the prime minister, he tried to form it. He nominated Dr Ganesh Gurung to head it but the parties concerned were not able to agree with the names of other members. So, the body formed with Dr Gurung as its head did not take the full shape. It became a one-man defunct body. After Dahal left, Madhav Kumar Nepal took over the reins. At that time also, smaller parties like ours have been constantly telling the bigger parties to meet this constitutional provision.<br />
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it. When madhav Nepal was the Prime Minister, I don’t know if he ever tried to push this process forward. Most of the time, his government and the Maoists were at loggerheads with each other. There was no real initiative to draft the constitution. They spent their energy in the struggle for power. That is the reason why the state restructuring commission has not been formed yet. In fact, it was not an agenda of priority for the Maoists, Nepali Congress and the UML.<br />
	 </div>
<div style="text-align: justify;">
	They simply ignored this issue. Now, after the year-long extension of the Constituent Asembly, normally one would expect them to try and form this committee. However, they have ignored this again and we are now left with only two-and-a-half months from the deadline for promulgating the constitution. And still there is no seriousness about satisfying this constitutional provision. This is a sad story, to say the least. Now, the Maoists are saying that it doesn’t make any sense to form the state restructuring commission because the thematic committee working on state restructuring has already come out with its report. But what we have been saying is that this is a constitutional provision. If this provision has to be ignored, then people must prepare a proposal, make a constitutional amendment, take it to the parliament and remove this article from the constitution. As long as this article is there, we have to make sure that we honour it. I am sure this is an issue that will come up in our subcommittee meeting soon.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, it would not be possible to go ahead with the state restructuring without the commission’s report?</strong></div>
<div style="text-align: justify;">
	The state restructuring commission has to submit its recommendation before we make a final decision on state formation in this country and on the number and size of the provinces and many other issues related to federalism. We cannot ignore this constitutional provision. The responsibilities of the committee are to advice and provide suggestions.<br />
	 </div>
<div style="text-align: justify;">
	The constituent assembly has a right to either reject or accept them. Therefore, we must give them the opportunities as specified in the constitution. I think if we go about deciding the number of states without the commission’s recommendation that would be ignoring the provision of the constitution. It would neither be proper or correct nor acceptable.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Why has there been no meaningful debate held so far for state restructuring?</strong></div>
<div style="text-align: justify;">
	It’s because different political parties have different propositions. Their formal proposition is different from what they say in informal interactions. This is also the part of the problem. I think if we have a state restructuring committee, it would help solve some of these contradictions. There has not been serious debate among the political parties primarily because the three major political parties have not given attention to this issue. They are involved in power struggle all the time and busy speculating on who would be the next prime minister. In a way, it is their sense of irresponsibility and negligence towards the commitment made to the people when the constituent assembly elections were held.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Which model of fiscal federalism would be most appropriate for Nepal?</strong></div>
<div style="text-align: justify;">
	It is the question of devolution of authority. One of the more important aspects of this is the financial authority. Till now, Nepal has been a centralised state. Most of the resources are collected by the central government. Now, we want to make sure that we devolve fiscal authority to states and also to the village development committees (VDC) so that they can raise resources on their own. I personally think that if the central government raises 60 per cent resources, remaining 40 per cent would be raised by the local government bodies, states and the VDCs.&nbsp;We have to work along the line of fixing such a ratio. I think 60:40 ratio would be quite logical.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you see the danger of improper distribution of revenue in federal Nepal as the source of revenue would not be uniform in all the states?</strong></div>
<div style="text-align: justify;">
	I think we also need a financially strong central government. This is because, inevitably, some provinces are going to be financially weak. They may have the resources but these are largely unexploited. For example, in the hilly areas, hydro resources are there but it will take time to exploit them.In the mean time, we will have to find a way to compensate them for the lack of resources. That needs transfers from the central government.</div>
<div style="text-align: justify;">
	It will work out depending on population, human development index and so many other relevant variables. We have to give a sense of equity and justice to people in all the provinces of this country.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The idea of ethnicity based federal structure has courted big controversy. How does ethinicity-based federal structure fare in terms of fiscal federalism?</strong></div>
<div style="text-align: justify;">
	There is a big controversy on this issue. No doubt about that. Different political parties have recommended number of provinces varying from seven to 14. One of the remarkable things is that no particular ethnic group is in the majority in their proposed respective states. Take the case of Limbuwan, for example. In Limbuwan, you have a total of 30 to 35 per cent Rais and Limbus if you combine both the communities. The rest 60 to 70 per cent are non-Limbus. Therefore, to go ahead with the idea of ethnic states, in a way, might alienate the other majority population and may create ground for conflict.<br />
	 </div>
<div style="text-align: justify;">
	The important thing is representation in the provincial and national parliament in line with the ethnic distribution. We have to assure and be clear on that point. Once you achieve that, I don’t think we should stress too much about this ethnic issue. People want representation in the power structure. And that representation must reflect the underlying distribution of the ethnic population. Once there is the electoral system, it makes sure that the ethnic representation is there in line with their ethnic distribution of population in the country. I think it would solve a lot of problems. Once you move in this direction, emphasis on ethnicity alone is going to wield less importance.</div>',
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	Small sized loan sans collateral, group savings, small-scale entrepreneurs,&nbsp; diversified utilisation and simple and flexible terms on credit are among the features of micro-finance companies. </p>',
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	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Hari Bhakta Upadhyay Adhikari</span></b></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Gemstone Expert</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;"><span style="letter-spacing: -0.1pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with.</span> <br />
	</span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Being a civil engineer, what attracted you towards gemstones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In my 25 years long career with the government, I reached a lot of places in Nepal. I was interested in herbs too. Working as an engineer, I also went on gathering information on gemstones of Nepal. With a technical background, it was easier for me to understand them. After I took up voluntary retirement from government job in 1991, I began intensive study on gemstones. I studied a lot of literatures on gemstones. Based on my study of 18 years, I have written two volumes of a book on gemstones named ‘Nepal Ratna’. These books are helpful to gain knowledge on precious stones.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Where did you find the major concentration of such stones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In Kaligandaki river, ruby, sapphire, tourmaline and jasper are available. Trishuli river is a treasure house of Topaz. Madi, Phidim and Karnali rivers have garnet. Narayani, Trishuli and Mahakali rivers have kyanite, quartz and jasper. Taplejung, Manang, Sankhuwasabha, Bhojpur, Jajarkot, Achham, Bardiya, Kalikot, Lamjung and Dhankuta have emerald, ruby, sapphire, beryl and other precious stone. Similarly, corundum, topaz, quartz, garnet, aquamarine, opal, jade, moonstone are found in Nepali mountains from east to west. In Ganesh Himal, I had found a mountain of ruby.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">You ‘had’ found a mountain of ruby. Isn’t it there now?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Nepal Metal Company was established in 1976 with Hyderabad Industries Limited, Government of Nepal and ordinary Nepali people as shareholders.&nbsp; After Nepal Government and the Indian company, the largest shareholder was Mohan Gopal Khetan and he was very influential in the company. I too had some shares. At the 14th annual general meeting of the company in 1995, I raised a strong voice that the ruby extracted from Ganesh Himal was being exported without authorisation. The meeting formed a seven member investigation committee with me as its head. But none of the members agreed to go to Ganesh Himal with me to investigate. Later I found that someone had told them that Mohan Gopal Khetan might cause them great harm. So, I too did not go there at that time. Later in 1996 when I went there, the hillock that I had identified earlier as the deposit of ruby was blasted out. The mound of 15 metre width and eight metre height was estimated to contain 19 metric tonnes of ruby. However, though the ruby from the hill was taken away like that, there still is a very high potential of ruby deposit in the 60 hectares area around that destroyed hill.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What would be the value of the ruby there? </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Ruby now is priced at Rs 17,000 per carat. Five carats make one gram. So one gram is worth Rs 85,000. That means, the 19 tonnes of ruby converted into money at today’s price would be sufficient to meet the government budget of Nepal for 500 years at today’s budget size. The then royal palace played major role in taking out rubies from there.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Despite such immense availability of gemstones, why is nothing being done?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">There is utter lack of human resource with good knowledge of gemstones. Even the department of mines under the government does not have a gemstone expert. There are no academic courses in this field so there is no possibility of gemstone experts being developed for the future. The government must do something urgently in this.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What have you done personally towards it?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">After I began studying gemstones, I felt the serious lack of human resource. Then at my own cost, I established Gemstone Research and Training Centre and began providing trainings. But, now I have discontinued it due to the power outage. Till now I have trained 80 persons on identifying gemstones, cutting and polishing them, cutting with the use of modern machines for export quality finish, carving hole with the ultrasonic drill machine and identifying and certifying the stones. I have been providing trainings too going to different offices under the Department of Cottage and Small Industries. And I have also designed a training course to be given by the Department on finishing gemstones.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What are your trainees doing now?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Some are running their own businesses. Some others are working in this sector at Thamel and in Bhaktapur and Surkhet.&nbsp; But most of them are not in this field. Due to the lack of capital, they have not been able to mine the stones and run factories to process them.&nbsp; <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What about government licensed gemstone exploration or mining?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">&nbsp;There are very few people who are in gemstone mining with government license.&nbsp; Most of the mines are illegal. I have heard that tonnes of raw gemstones are exported every month to Jaipur in India.&nbsp; Nepali ruby, sapphire, tourmaline and aquamarine are exported to Japan, Germany, America, Singapore, Switzerland, Belgium, Sri Lanka and South Africa. But I have not come to know anyone who holds a license to mine ruby, sapphire and aquamarine. Quartz is mined at Dhading, Gorkha, Rasuwa, Darchula, Bajhang and Sindhupalchowk. Similarly, aquamarine is collected from Taplejung and Rasuwa while Tourmaline is collected from Manang and Jajarkot. Garnet is mined from Sankhuwasabha and Ruby and Quartz from Dhading.&nbsp; These stones are mined without license and exported. The government has failed to see that.</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Didn’t you talk to the government for cooperation on locating and mining the gemstone deposits?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">I talked to Sahana Pradhan and Hridayesh Tripathi when they were Ministers of Industry but they declined the request citing the lack of budget. I have talked to the Department of Mines and Geology time and again. But nobody cares. In fact the Department does not have experts. So I am focused on producing qualified human resource.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What do you suggest as the most important thing to do in this field?&nbsp; </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with. I am 81 years old now. I wish to see three training centres coming into operation within my lifetime. If that happens, hundreds of thousands of Nepalis would get employed and Nepal’s economy would turn around.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">How do you see the future of gemstones in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">Water resource helps the economy in an indirect way. The electricity generated from water should be first used to run factories and produce goods which can then be exported to get the money. But, gemstones can be sold straight from the mine. Nothing is being done in Nepal in this sector. I believe the kyanite (aluminium silicate) deposit of Nepal can meet the aluminium demand of the entire world. Similarly, gemstone kyanite costs US $ 1500 a gram. A truck full of such kyanite is illegally taken to India every month. The Customs Department and the police do not know about its value and usage as they are ignorant about the precious stones. The illegal mining and export must be stopped. If the government involves the private sector in this field, it can contribute more than hydro and herb resources do to the economy. </span><br />
	</span></p>',
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<p style="text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Krishna Prasad Kafle</span></b><br />
	</span></span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Mines Expert &amp;</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Former Superintendent Geologist, Department of Mines and Geology</span></span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the situation of the mineral resources in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">During the Rana period, minerals like iron, copper, cobalt, lead, zinc were mined in different places. It was a compulsion to operate these mines as there was no other way to get such minerals in Nepal. Charcoal was used as the fuel to heat the ore to extract iron and copper from the ore. Such metals were used for making household utensils and farm implements. Iron extracted from Thoshey mine of today’s Ramechhap district was used for making gun barrels by the then government. Historical records show that nine barrels were produced in a day. The remains of the factory and traces of mine excavation can still be found there. Similarly copper and lead were mined in Baglung, Gulmi and Myagdi, and cobalt was mined in Arghakhanchi and Gulmi. Copper is available in many places. Copper mines of Marma, Khandeshwori and Siddhi Khani in the eastern Nepal are some of the well-known ones. In Myagdi and Baglung a lot of work was done on mining. Bhainse and Pandav mines in Myagdi district are a few examples. However, they were all in small scale. The studies in the course of 50 years by the Department of Mines and Geology have identified various minerals found in Nepal. Among them, some may not be viable to mine commercially at present but have possibility in the future when the price of such minerals may increase. As more studies are conducted and technology becomes cheaper, we may go ahead with excavation for such minerals.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What have these studies found about the estimated size of mineral deposits in Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The deposit size differs for different minerals. If you look at the iron mine of Fulchowki of Lalitpur, it is around 10 million tonnes. Similarly Thoshey mine has around 16 million tonnes of iron as per the estimate by the Department which is supported also by the study made by a new mining company interested in this mine. The Department has located lead, zinc, copper in different places. In non-metallic segment, limestone, used as basic raw material for cement industry, is found in huge quantity. A deposit of 1.25 billion tonnes of limestone has been proved and places have been identified with probable deposit of 1.50 billion tonnes. Based on these data, 29 licences have been issued for limestone excavation and 196 licenses for limestone exploration. Hetauda Cement, Udayapur Cement, Himal Cement and Annapurna Cement are the examples of the cement factories that are utilising the Nepali limestone.&nbsp; Now additional cement factories are set up or are being set up in Dang, Salyan and Rolpa utilising the limestone mines there. In Arghakhanchi, Dynasty Cement Company is already in operation. In Udayapur and Hetauda, new factories based on Nepali limestone mines are coming up. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Now many cement factories are using clinker imported from India. Currently 40 to 50 per cent of Nepal’s cement demand is supplied by local factories. As the new infrastructures are being set up in the country, the demand for cement is going up in the similar speed. So, cement industry have good prospects in Nepal. This increased demand can be met by cement produced in Nepal with Nepali limestone. Thus Nepal can be self-reliant on cement with the available limestone deposit.&nbsp; Gypsum is the other mineral required for cement production. Though that is not found in a large quantity so far, there is possibility to find it. Explorations and studies must be continued. Other minerals required for cement industry are coal and iron. Both of them are available in Nepal. If government issues licence and no local problems arise, Thoshey mine can supply the iron to Nepali cement industry. Gypsum can be imported from Bhutan and India. There is possibility to find it in the area around Pyuthan, Dailekh and Surkhet.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Then why could not Nepal cash in this wealth so far? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash in this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. The government has issued 451 licences for exploration of minerals and 80 more licenses are issued for excavation. Recently, the awareness about the importance of this sector is growing.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">People say that though the types of minerals found in Nepal is very large, the size of the deposits are so small that it is not economical to mine them. What is the exact situation? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">When we were studying a copper mine in Dadeldhura, we found gold, copper, tungsten, nickel, molybdenum, bismuth and even cobalt from the same mine. It is a poly-metal sulphide deposit which can be used as multi mineral mine.&nbsp; The tendency is such that we look for a certain mineral and when we notice that the deposit size of that mineral is not economical, we leave that site without trying to explore about the presence of any other mineral there. There was a UNDP project conducted to explore minerals in Nepal and that too concentrated only on copper, lead and zinc, which are called base metals. If the project had explored for other minerals as well on the same mines that would have yielded significant benefits. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Places like Myagdi, Baglung, Parbat, Gorkha, Solukhumbu and Ilam have mineral deposits. Gemstones are available in Sankhuwasabha, Dhading, Rasuwa, Jajarkot, etc. Different places are suitable for different minerals. The minerals are scattered all over, from the mountains to the Terai. We have failed to make a commercial use of them. Had we utilised them in time, we would have made tremendous economic progress already. For example, the best high-grade magnesite deposit of South Asia is in Dolakha district. But unfortunately we failed to excavate it on time and take it to the market. With scientific advancements, even the medium grade magnesite has now become as good as the high-grade. As we don’t have internal market for dead burnt magnetite bricks, we have to export it to other countries where such bricks are used in industrial units that have high temperature furnaces. Such bricks can resist up to 2300<sup>0</sup> Celsius temperature while normal bricks can’t resist more than 700<sup>0</sup> Celsius. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What about other minerals such as gold? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The gold deposit in Nepali mines is very small. However, gold is priced very high. Therefore, though the quality of gold that can be mined in Nepal may be small, its value is high. Therefore, even if the deposit of this mineral is small, it can be economically beneficial to mine. Our rivers like Karnali, Chamelia, Seti, Bheri, Budhi Gandaki, Marsayangdi and Kali Gandaki have gold in their sands. Local fishermen search for gold ore in these rivers and sell it in the market. Such ores have 60 to 99 per cent of gold. Precious metals and precious stones like ruby, sapphire, tourmaline, aquamarine are highly priced. Therefore, though they may be in small quantity, their value is high and it is economical to mine them. Metals like gold, iron, copper and zinc have their own value. They are found in Nepal and have a good market.&nbsp; But in the absence of proper mining, most of them are wasted. The local people have a tendency to blast the mine. By doing so, some quantity is extracted, but the big pieces of the stones get destroyed in this process. They are doing so because they don’t know the proper method of mining. If they hire an engineer to help them mine it properly, it can give them better results. We have mines from small to medium size. We don’t have mines as big as the ones in Australia, China and Canada. In non-metallic segment, we have big limestone deposits.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of possibilities you see for the contribution of mines and minerals sector to the economy?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">At present, the contribution of mines and minerals to the country’s GDP is estimated at around 0.4 per cent. This goes up to 2.4 percent if we consider mineral-based industries as well. If we utilise our resources properly, we can increase this to 15 per cent within a decade. This is only by utilising the identified mineral locations. If new ones can be found, the benefit will surely go up.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What do you suggest to address the environmental issues that crop up with mineral exploration? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">That reminds of Godavari Marbles. The company was doing well.&nbsp; It had market in Bangladesh and India. But the locals and environmental activists did not allow the mine to function properly. You cannot take out the minerals without digging up which may damage the environment. However, there are ways to minimise the damage. Moreover, though the environment is damaged when the digging is going on, the location can be rehabilitated and the damage replenished once the digging is completed. The mine can be rehabilitated by tree plantation, herbs farming, horticulture or building a resort. In some cases, it is possible to do the entire exploration as well as processing under the ground so that the noise and dust pollution can be minimised. Or the digging can be under the ground and the raw mineral can be transported through tunnels to a far-away location for processing. However, it is not possible to avoid some environmental damage as the opening to the mine is naturally over the ground.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the commercial viability of petroleum mine and, metallic and non metallic mines? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The geological structure and study reports suggest the possibility for petroleum at different locations of Nepal. Oil migrates from one place to another if it can’t get tapped properly.&nbsp; On the basis of studies by the Government and foreign companies, Nepal’s Terai including Churia region is divided into 10 different blocks for petroleum exploration. Shell Netherlands drilled about 3.5 kilometres on the block No. 10 a few years ago and found it dry. Then the company left Nepal. Now Cairns Energy, a British company and Texana Resources, an American company are doing preliminary works like reassessing, evaluating the existing data, and analysing samples but they are not doing it in full scale. Seismic survey has to be done. Then blasting may be required in some places. And wires have to be laid extensively. But it is not possible to do all these at the current political situation of the country. So they are idle. The government has already received back what it has spent on these studies. The government has charged these companies around Rs 200 to 220 million. Among the 10 blocks, five blocks are taken by Cairns Energy and two by Texana. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Oil is being extracted in Assam in India and Potwar of Pakistan since 1970s. As Nepal lies in the same geographical belt, there must be petroleum in our country too. But we have not found it yet. So we can’t guarantee the presence of petroleum yet. In Dailekh we can see the petroleum seepage. Similarly, in Trans-Himalayan region too, we find traces of gas. That shows the possibility of petroleum gas.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which minerals should get priority in exploration and excavation in Nepal in your opinion? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Among the precious metals, gold has to be prioritised and on base metals, copper, nickel and cobalt must be given attention. On non-metals, limestone, magnetite, dolomite, phosphorite and talc have to be given top priority. As these minerals have good prospects to be found and there is international market as well in these, we should explore them also in new places. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The government should increase its budget in mining sector. In the last fiscal year, Rs 20 million was collected by the Department of Mines through licensing. But the projects under it get only around Rs 3 to 3.5 million as their budget which is too little.</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">There is a controversy going on in the mining of sand and stones. As a mining engineer, what is your take on it?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Rivers bring down sediments from the hilly region and deposit them on the plain areas where the water current is weak. It is a continuing process. If such sediments are not dug out it brings problem. It lifts the river bed and increases the risk of flooding. But extraction of such sediments must be sustainable and balanced. You should not take out more than what the river has brought down from the hills. The problem at present is that in some places these sediments are extracted extensively while at some places nothing is taken out. At some places, walls are built to save settlements from flooding but sands and stones are extracted even from the foundation of such walls. That is haphazard mining. There must be a mining engineer and a geologist in every Village Development Committee and District Development Committee so as to properly mobilise the resources.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the minerals in which the private sector has shown some interest recently? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Recent report of the Department shows there are 80 licensed mining companies. Some of them are in operation. Most of them are on limestone, coal, red clay, slate, magnesite and on semiprecious stones like kainite, tourmaline, marble and quartz.&nbsp; The licenses already issued cover 12 minerals.&nbsp; And the trend is growing.&nbsp;</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the biggest challenges and problems in utilising the hidden treasure called mineral resources of Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Minerals are mined, so they are also called hidden treasure. However some minerals are found on the surface as well, e.g. the boulders. The biggest problem is that the Mines and Minerals Act, Forestry Act and Local Self-governance Act have contradictory provisions.&nbsp; Forest authority imposes tax on everything in the forest while mining authority says the mines, even within the forests, are under the mining authority. On the other hand, the District Development Committee and Village Development Committee come up and say they have the right over the mine area within their locality. So, the miner ends up paying taxes to all these different authorities. The solution is to adopt one-window policy for tax collection. Three ministries should coordinate and make mining easy. Investors will pay tax when they generate income. Before that they generate employment.&nbsp; So they must be encouraged. If 10 cement factories produce 1000 tons of cement daily, they jointly create employment for 10 thousand people directly and another 20 thousand indirectly. That will have multiplier effect.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of market prospects do you see if the minerals can be extracted? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The magnesite bricks will not be consumed in our country; not even five per cent.&nbsp; We have to search for international market. Surface transport costs much, so we cannot compete with other producers of magnesite.&nbsp; Therefore, we have to export it even though we have to provide special subsidy in its transport cost. Priority should be given to the minerals that can be used within the country, so that the import can be reduced and the trade deficit can be reduced.&nbsp; We can make good money if we export sand and stones to India and Bangladesh on time. Iron ore can be used within the country by the cement factories and iron mills.&nbsp; Other metals and precious stones have market everywhere in the world.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which five minerals would you like to specify as having the maximum commercial potentials?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Limestone is the most prominent. Then it is talc. Similarly important is magnesite as its mine operation is not difficult. If plants can be made and products taken to market, it has huge prospects. Only problem is of the fuel. A lot of coal is required. Kathmandu has natural methane gas reserve of 320 million cubic metres. It must be brought to the market. Precious and semiprecious stones, high priced metals and base metals must be highly prioritised.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">It seems that the mineral sector studies are very few and difficult to find. Why is it so? </span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">There are a number of research activities carried out, but not on the desired speed and scale. The problem is that the study reports are not made available to the public in a manner that makes them easily accessible to all those interested on it, by paying reasonable fee. This is essential to attract investors. About 60-65 minerals are said to be found in Nepal. Economic viability of such minerals has been changing over the time. For example, once gold was available in Kathmandu for Rs 9 to 10 thousand per 10 grams. That time, the Nepali gold mines were naturally uneconomic. Now that the gold price has increased to Rs 30-40,000 per 10 grams, the same mines may be economical. An authority should be designated to make the decisions regarding which mine should be brought into operation and which to keep on hold.</span><br />
	</span></p>',
			'published' => true,
			'created' => '2011-02-27',
			'modified' => '2011-02-27',
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			'description' => 'We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a',
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	(int) 6 => array(
		'Article' => array(
			'id' => '232',
			'article_category_id' => '40',
			'title' => 'Mining The Prospects',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><i><span aldine401="" bt="" serif="" style="line-height: 120%;">By M Rijal &amp; Gaurav Aryal&nbsp; </span></i><br />
	</span></strong></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 2.85pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">T</span><span aldine401="" bt="" color:="" serif="" style="">he present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next 10 years. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“We are talking about the previously identified mineral resources only,” says Krishna Prasad Kafle, a geologist and mines expert. “Once new mineral resources like petroleum are discovered, the contribution to GDP will far exceed even the present forecast of 15 per cent.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The future might look bright; the present situation, however, is still bleak. The fact is that Nepal is a net importer of gold, silver, copper, lead, zinc, iron and steel, aluminum, gypsum, salt, petroleum and high grade coal, among other minerals and mine-based products. “We can change the situation,” adds Kafle. “Nepal has tremendous mining prospects – let’s not doubt this fact. The geology of Nepal itself is the evidence to it.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Petroleum Prospects </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Sporadic oil exploration works in Nepal were first recorded in the 1930s. However, the first drilling was done only in 1989 in Radhanagar, near the eastern city of Biratnagar. The place is now Ward No 9 of Bahune VDC in Morang district <i>(see picture)</i>. Netherland’s Shell Company was involved in the drilling. The company drilled some 3520 metres beneath, but the “well” was found dry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">“Only if the company had gone little bit deeper, there was a chance to discover the hydrocarbon (petroleum) deposits,” claims a geologist on condition of anonymity. “As fate would have it, India had imposed economic blockade on Nepal at the same time. Drilling machineries had to be imported from India. The total daily operating cost of drilling sky-rocketed to as high as Rs 30 to 35 thousand (not adjusted with inflation). The company ultimately abandoned its plan of going deeper.”&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The Petroleum Exploration Promotion Project was set up within the Department of Mines and Geology. It gave momentum to exploration. So far, the Project has performed Airborne Magnetic Survey in 48 thousand sq km, photo-geological study in 60 thousand sq km, Reflection Seismic Survey in some 5 thousand line km, Gravity Survey in the entire Terai region, and Source and Seal Study in entire Nepal. Most significantly, the Department identified 10 <i>probable petroleum deposits</i> blocks in 1985. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“Nepal’s whole Terai and Churia range are the most potential petroleum blocks in Nepal,” says Shyam Bahadur KC, the Acting Project Chief. “This is the region constituting all 10 blocks identified for oil exploration.” Each block is of some 5 thousand sq km in area and is named from the west to the east <i>(see Table 1)</i>. The Nepalgunj and Chitwan Blocks (3 and 5, respectively) were leased to Texana Resources, Huston, USA in 1998. But the company postponed exploration works in 2000 citing security reasons. The company is said to have almost completed preparing various maps but has not revealed further as to what would be next. Five Blocks - 1, 2, 4, 6 and 7, respectively, were awarded to UK-based Cairns Energy in 2004. The company postponed works for four years and resumed in December 2009. The company is involved in developing the complete maps first. As for the remaining three Blocks - 8, 9 and 10, the government is preparing to award contracts through a bidding process most probably in the next fiscal year (2011/12). <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for the reasons for so many researches-planned focusing on the Terai and adjoining Churia range, the geologists have firm belief that Nepal’s Terai is similar in geography to the sub-Himalayan plains of Pakistan and India where hydrocarbon deposits were discovered and are extracted on commercial scale. The Potwar Basin of Pakistan and Digboy of Assam in India are mining hubs in the sub-Himalayan region. “From among the 10 Blocks, if we discover even a single medium size oil well, it can transform the economy of Nepal beyond anybody’s imagination,” KC asserts in an optimistic tone.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">The evidence of Nepal’s hydrocarbon deposits can be seen as the gas and oil seepages in various parts of Dailekh district in mid-west Nepal. For instance, the oil seeps at Padukasthan represent “biodegraded” light oil with geological source, whereas the gas seeps at Navisthan and Sristhan are of “thermogenic” origin, according to geologists. Further, the proportion of higher “homologs (C2-C5)” in the seepages of Dailekh district suggests gases associated with oil. The threat, however, in terms of capitalizing the potential hidden oil wells is that “hydrocarbon deposits are mobile by nature”. If not tapped in time, the whole petroleum reserves may move from one place to another even crossing the man-made boundary of any country – this is what most of the geologists fear in Nepal. </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Cement: On the Way to Abundance </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Among all non-metallic minerals, excavation of limestone – the basic element to produce cement, has increased substantially in the recent years. Limestone is in abundance in the country and predictions are that Nepal has a chance to be fully self-dependant on cement by the next seven months (August 2011). Some six new industries are coming to the fore, in addition to the existing 30 cement industries. “We can now be hopeful that the domestic industries may fully sustain the demand for cement,” says Dhruba Thapa, Vice President, Nepal Cement Industries’ Association. The industries, however, still have to import clinker, which is produced from limestone and used for cement production, from India. As of today, some 30 companies have received limestone mining permission from the Department of Mines and Geology, whereas 167 companies have received the limestone prospecting (exploration) license from the Department. And more than 60 companies have received the license to operate a cement industry from the Department of Industry. In Nepal, the volume of limestone deposits (of cement grade) is believed to be over 1.25 billion metric tons, according to the Department sources.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for other non-metallic mineral resources except cement, there are possibilities for unearthing dolomite, phosphorite, magnesite, talc, mica, ceramic clay / red clay, silica sand, salt, barites, calcite deposit and diatomite, etc, from various parts of the country. There are also possibilities for mining precious and semi-precious gemstones such as tourmaline, beryl / aquamarine, garnets, kyanites, rubies / sapphire and quartz crystals. Decorative stones such as marble, granites, quartzites and slate can also be mined. Construction materials such as boulders, cobbles and pebbles are also in plenty while fuel mineral like coal too has commercial prospect. As for the operating mines, there are a few in the country. For instance, mining of marble is being done from Godavari (Lalitpur) and Anekot (Kavre); pebbles are mined from almost every riverside and low-hills and are even exported to India’s booming construction industry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Metallic Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">In Nepal, the iron ore prospects and deposits are reported in 85 locations and the copper in 107 locations, zinc and lead in 49 locations, cobalt at least in 4 locations and nickel in at least 5 locations. At present, a Chinese company is involved in the mining of iron in Thoshe, Ramechhap. As for gold, there is no mine in operation as of today, but it is frequently winnowed out from the gravel and sediments of around a dozen rivers like Mahakali, Bheri, Rapti, Kaligandaki and Sunkoshi. Primary gold occurrences have been reported from Lungri Khola area in Rolpa; Banga Bagar, Gorang and Jamari Gad in Baitadi; and Bamangau in Dadeldhura. These areas are, however, yet to be explored extensively. The Department of Mines and Geology thinks that once the mining licenses are issued, the mines will automatically get the status of “operating mines”. As the Department has no mechanism to cross-check the facts going to the field, there is a compulsion to assume that the license holder mines are really operating. Same is the case for gold and other minerals. Two licenses have been issued to mine gold and are taken as the operating mines in the Department’s list without further evidence. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">As for Uranium, which is radioactive and so, a highly valued mineral, is also reported to have some deposits in Nepal. The sites are Jagati in Bhaktapur and Shiva Puri area in Kathmandu; Tin Bhangaley, Chandi Khola and Chiruwa Khola in Makwanpur; Buka Khola in Sindhuli; Janmari Gad, Banga Bagar and Gorang in Baitadi; and some traces in Chameliya river in Darchula. “Among the potential uranium sites, Tin Bhangaley (Makwanpur) and Gorang (Baitadi) prospects appear attractive, but economic evaluation of these sites are yet to be performed,” says geologist Kafle.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Methane Gas and Other Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Kathmandu valley that incorporates three districts of Kathmandu, Lalitpur and Bhaktapur is rich in methane gas deposits. The Department of Mines and Geology explored this gas in 26 sq km area in the valley and it was proved that 316 million cubic metre of methane gas deposit is available for commercial purpose. But it still remains unexploited. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Nepal is also affluent in other miscellaneous mineral resources. For instance, there are some 23 geothermal hot springs in Nepal. They are found in the vicinities of rivers like Mahakali, Marshyangdi, Trishuli, Kodari and Surai Khola, among others. The temperature of the hot spring water remains generally in between 40°C to 115°C. The hot springs can be utilized for tourism purpose, as people enjoy taking a bath into it. It is also believed that the hot springs have the healing power in illnesses like backache and arthritis. Thermal electricity can also be produced from the hot springs with the help of technologies.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Challenges</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Nepal’s mineral resources themselves have become the curse, says geologist Kafle. “From mountain to Terai, minerals are scattered all over the country. But we have failed to cash in them. Otherwise, we would have made remarkable economic progresses,” adds he. “Mineral exploration, mine development and establishment of a mineral based industry normally require large investment, sound technical know-how and long gestation period. We lack these all.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">It’s a fact, in a money-crunch country like ours, Foreign Direct Investment is a must to explore and utilize petroleum and other mineral resources, says another geologist KC. “The government of Nepal is not able to sufficiently finance the research and exploration of the mines and minerals. Usually the government provides the Department with Rs 3 to 3.5 million annually. This amount is not enough for us,” adds he. “ On the other hand, it is a global practice that the government rather than doing the exploration works by itself, invites companies for the exploration and investment. Even the powerful countries like USA, Norway, Saudi Arabia, etc invite the companies for the investment.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Further, there are high risk, uncertainty and long return period involved in mineral exploration and mining. And if the private sector is to invest in it, the government must develop infrastructures like road, electricity and telecom in the mineral deposit sites. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Yet another biggest problem is that the three laws of Nepal - Mines and Minerals Act, Forestry Act and Local Self Governance Act contradict with each other.&nbsp; For instance, the forest authorities impose tax on everything inside a forest, while the mining authorities say it is different and come under the mining rules and regulations. And the local government bodies such as District Development Committees (DDCs), Village Development Committees (VDCs) and municipalities claim the same taxation rights over the same resources. It is imperative that, to clear ambiguities, the government must make one window policy of tax mobilization vis-à-vis mines and minerals. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Way Ahead</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Capable technicians at the Department of Mines and Geology are frequently leaving the country in absence of career prospects and there is no significant entry of new technical manpower at the Department. Such a situation may cause severe hindrance to mining activities in the country. Further, the haphazard pebble and gravel mining activities, such as those in Nallu, Lele and Chapagaun villages of southern Lalitpur may lead to environmental degradation. Development should always be healthy, balanced and eco-friendly. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">For public scrutiny, it is extremely difficult to extract information from the Department and to some extent, from the Department of Industry. Mines and mineral related information should not be stored but disseminated and exposed through publications and media campaign on a regular basis. Mining potentials must be publicised so as to lure the potential investors and create awareness among the policymakers. This very thing is lacking in Nepal. <br />
	</span></span></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="line-height: 115%;">At least for the moment, only if the petroleum exploration works in the 7 leased blocks could enter the phase of drilling; it could be a silver lining to all those who wish to see the works moving ahead on a fast track. </span><br />
	</span></p>',
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		'Article' => array(
			'id' => '112',
			'article_category_id' => '40',
			'title' => ''The Government Has Not Recognised Advertising As A Real Industry'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.</strong></div>
		</div>
	</div>
</div>
<p>
	<strong><br />
	</strong></p>
<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Being a key player in Nepal’s ad industry for almost two decades, what is your evaluation of its evolution? </strong><br />
			Our market has seen tremendous change and ended with a 360 degree turn of success. We only had the state-owned Gorkhapatra and The Rising Nepal in the print media and Nepal Television and Radio Nepal in broadcast media to begin with. Most of the advertising two decades ago constituted government ads and notices. Over the years, Nepali advertising has taken a long leap because consumption patterns have changed and the market has changed, too, because of democracy and several other factors. Multinational companies (MNCs) were not there. FMCG (Fast Moving Consumer Goods) products were very few. Today, we have MNCs, new big companies and many FMCGs. All these changes have brought in new players in the market. The advertising situation has been changing every five years. Today, we are almost on a par with advertising industry in the neighbouring countries. But our online advertising has not grown as expected.<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There seems to be unhealthy competition among the major players on holding onto the clients. How can this be controlled?</strong><br />
			Unhealthy competition does exist, but it is not as it was a decade ago. The clients have become more professional and demanding. Leading advertising agencies are under pressure to produce quality ads ever since the clients have started demanding effective campaigns. If you can deliver good work and service to the client, the client is bound to stay on. The smaller advertising agencies, however, continue to compete with each other by offering lower tariff and increased percentage sharing to the clients. I am sure this scenario will change with time once they come to terms with the professional demands of the market. Media exposure has led to clients demanding more professional service as they now know what’s happening in other countries. Compared to a decade ago, there are more advertising agencies producing quality work which has helped bring down unhealthy competition.<br />
			<br />
			 </div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>Now the ad market of Nepal stands at around Rs 3.5 billion. Are the ad agencies having a good time? </strong><br />
			Yes, it is a good time for the ad agencies which are serious and professional. They are prospering and they will be prospering.<br />
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			<strong>Prisma has top profi le clients like Bottler’s Nepal, Samsung, Western Union, Ncell and Bajaj, to name a few. How tough is the competition among the agencies? </strong><br />
			The competition among the top notch agencies is very healthy and professional. We have a good portfolio of clients but in today’s age of competition, we have to be better than others and perform well to get an edge. So, the competition among the top notch advertising agencies is more in terms of quality and creative work.</div>
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			<strong>The number of advertisers has grown but the number of ads and the market value have grown more. What is contributing to this growth? </strong><br />
			Several factors have contributed to this growth. For one, our urban population is growing consistently and so is the demand for products and brands. MNCs like Unilever and Dabur are pumping in more investments. Another reason for this growth is the change in our consumption habits. Almost 60 per cent of our population is below 32 years of age. This population is literate and possesses decision making capacity which enables them to dictate the market, which in turn, demands the products to be competitive and good. This is where the advertising agencies come in the picture. The entry of new players into the market fuels increased advertising spending from the existing competitors. An example is, when today’s Ncell came in as Mero Mobile, Nepal Telecom was forced to turn aggressive. During its old days of monopoly, it never felt the need for advertising as it does today. Similarly, there are certain sectors that have grown tremendously in recent times. Today, the largest spender in advertising is the education sector. Real Estate sector is another major contributor to Nepal’s advertising industry.<br />
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			<strong>Is the lack of creative talent the only reason our advertisements are not at par with foreign advertisements? </strong><br />
			I, for one, do not agree with this. When you look at any other country’s advertisements, for example India, there is sectoral advertising. Each advertisement there targets a special section of the society. Nepal is a market with all sorts of consumers mixed up. I cannot make a very creative ad for a mobile phone company like Ncell as it should cater also to the consumers living in remote Nepal where literacy level is very low. I do not expect such audience to comprehend the message that I will be conveying through a highly creative ad. For example, I cannot compare the comprehension levels of the youth in Kathmandu and Solukhumbu. It’s a major reason why Nepali ads are created in the simplest manner possible. What use is creativity if it cannot sell a product? It would be unfair to judge the creative talents of Nepali advertising professionals given the constraints that they have to face. It would be equally unfair to compare us with international advertising which caters to people with high literacy levels and different mindsets from ours. You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural<br />
			Nepali audience, too.</div>
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			<strong>Aren’t the agencies pressurising the government to introduce a regulatory framework? </strong><br />
			We have been pressurising the government for a long time. Despite us being an Rs 3.5 billion industry today, the government has not recognised us and given us due treatment. During election time, politicians seek our assistance to create campaigns which means they do know the importance of advertising even for electoral purposes. However, once the government is formed, they forget that advertising should be treated like an industry.<br />
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			<strong>Today’s youth look at careers other than advertising. How does that impact the ad industry? </strong><br />
			One of the biggest challenges for our ad industry is the lack of quality human resource. We have not been able to create enough interest among the youth. They would rather aspire for a banking career, for example, which is secure as well as a rewarding career. Advertising is merely a small topic for them while in college and not part of their core curriculum as such. It’s ignorance that’s keeping them from a career in advertising. They probably don’t realise that advertising, too, can be a lifelong and rewarding career. Once they realise this, the problem of quality human resource will have found a solution.</div>
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			<strong>Almost all MNC ads are dubbed from foreign languages, mostly from Hindi. Can’t we come out with our own ads for these products? </strong><br />
			One reason for dubbed ads is the trickle-down effect of international media in Nepal. For example, multinationals like Unilever want to create synergy among the communication they are doing in this region as most people have already seen the same advertisements on Indian TV channels. Nepal and India have similar culture and consumption patterns. In India, too, they use the same ad in different languages in different states. This way, the advertiser saves the production cost of new advertisements and invests only in releasing them over a number of channels in different languages. Another reason is the celebrity endorsement. Indian celebrities are equally popular in Nepal. A possible solution could be ‘clean feed’ which will block the advertisements on foreign channels aired to Nepal, thus forcing the advertisers to create advertisements in Nepali. However, there is no such policy at this point of time.</div>
	</div>
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			<strong>Our ad market is only of Rs 3.5 billion. Isn’t it quite small in size when you consider that a single company allocates more than this for advertisements in other countries? </strong><br />
			You have to understand that our market size is rather small. You cannot compare the advertising budget of Indian corporates with that of ours. A company’s turnover usually determines the amount it wants to allocate for advertising spending. Another thing that we need to look into is the potential of the market in terms of growth which also induces the budget of the industry. Thirdly, the government policy doesn’t provide for tax exemption on advertising spending after a certain limit after which the money spent on advertising is not considered as an expense. This discourages advertisers from making sustained investment in advertising. In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.<br />
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			<strong>The reported annual growth of 12 to 15 per cent of the ad industry is said to be mainly because of media infl ation. Do you agree?</strong><br />
			Inflation is created by the media but there is always a debate in the advertising sector for several reasons. You see electronic media suffering a lot during load shedding. On the other hand, there are advertising categories which have been shrinking because the whole industry has shrunk. Lately, noodles industries’ advertising spending has gone down heavily. But we are still growing. New breed of advertisers such as the real estate, education sector, and lately, DTH have come up. We are growing not just because of media inflation; there is a genuine growth, too. We expect to grow at 20 to 25 per cent looking at the pace of media growth but it is not happening because of the political situation and power cuts.</div>
	</div>
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			<strong>What is the market share of Prisma?</strong><br />
			We are proud to be in the market for 20 years. There are good clients attached with us for more than a decade. Our clients have succeeded in becoming market leaders over the years. We consider good work, recognition and revenue as the most important. It’s important to enjoy a good profit even if the turnover is less. I cannot quote a market share for you but we are holding a good position in the market.<br />
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			<strong>Which Nepali ad do you think is the best, either by your agency or some other agency and why? </strong><br />
			The biggest and the best campaign that ever happened is the Ncell rebranding from Mero Mobile that we did. The campaign was very successful and we are very proud to have done this campaign. Also, it was the only rebranding ever happened in Nepal.</div>
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.',
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	(int) 8 => array(
		'Article' => array(
			'id' => '111',
			'article_category_id' => '40',
			'title' => ''An Advertisement Must Sell The Product'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.</strong></div>
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				<strong>We defi nitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal.</strong></div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>How do you evaluate the Nepali ad industry? </strong><br />
			The industry has grown a lot in the last decade and it is still growing. It’s a Rs 3.5 billion industry now. But there’s still the lack of trained, educated professionals in this field. It makes a huge difference in the output, especially in a creative field. The new generation, it seems, is more comfortable to work in the banks, the way the old generation preferred government jobs to private ones. In advertising, as is the case with any other creative sector, people who don’t want a nine-to-five job are more interested. And those who want to explore their talent join this industry.</div>
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			<strong>There is no categorisation of ad agencies. Every agency has the same basic tag of ‘Advertising Agency’. Is that alright? </strong><br />
			It is high time that we differentiate. When we help sell the products of the clients, we position them. Every product has its own positioning. Similarly ad agencies must be differentiated or, let’s say, positioned. We in Water Communication would like to call ourselves a strategy and design company. Others see us as a creative agency. I think creativity is essential but strategy must be stronger.<br />
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			<strong>A common criticism against the Nepali ads is that they lack creativity. Ad agency people say that highly creative ads tend to go a bit over the top and that the general public fails to catch them. Can’t we create ads that are simple, yet highly creative?</strong><br />
			Creativity must be saleable. If you can’t sell creativity, I don’t call it creative. The main purpose of advertising is to promote the sales of products. Creativity must be promoting the sales. We don’t make ads for the sake of creativity. In the case of Nepal, the boundary for creativity in advertising is limited. I have to sell the products of my clients anyhow. Clients have different needs. And we need to be flexible.</div>
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			<strong>Many ads are made in such a way that the focus is more on something other than the product or its value. Such ads, rather than promoting the products, end up confusing the consumers. What is the main reason behind it? </strong><br />
			The person or agency responsible for making the promotion strategy must be aware what they want to sell. If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.<br />
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			<strong>Mobile phones and the Internet are growing as big media. How is your agency trying to cash in on this opportunity?</strong> <br />
			The new media is coming up rapidly and has a huge scope. In Nepal, the mobile phone has a greater scope than the Internet as there are more mobile users. Around 30 per cent Nepalis have access to mobile phones. Despite knowing about this opportunity, many ad agencies are unable to tap it. Mobile phone is a medium which provides a direct contact with the customers. But we don’t have an up-to-date database for that. Marketing through mobiles is a recent phenomenon in Nepal. We are far behind countries like India, China or even Bangladesh. Our customers are semiliterate. Still print is the best media for us for the time being. The television has definitely gained in popularity lately. So, it will certainly take some time before advertising could be done through the new media.</div>
	</div>
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		<div align="justify">
			<strong>As you said, the industry has a big problem of skilled human resource. How are you managing this crunch? </strong><br />
			We definitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal. So, there are very few trained professionals in the creative department. In the marketing department, we manage with the products of private colleges.<br />
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			<strong>Celebrity endorsement is not used much in the Nepali ads, while we see that quite a lot in foreign ads. Why are our ad makers not interested in using the celebrities to make ads? </strong><br />
			A celebrity is already a brand. But the celebrity-brand is perhaps yet to find a wider acceptance in Nepal. A product is also a brand. Rajesh Hamal is definitely a brand. It’s the media that creates a celebrity who then naturally becomes a brand. But sadly, the Nepali media has not gone beyond Rajesh Hamal and a few other names. Stars are not made by advertising agencies but by the media. We have limited celebrities and almost all the advertisers are using them to endorse their brands.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>In creating an advertisement, who plays the important role - the advertiser or the ad agency?</strong><br />
			Both play very important roles. And both have a common purpose – to reach the consumers. Clients give their needs and requirements and agencies help them with the means to reach the consumers. At the end, that must sell the product. Some might say that advertisers influence the creation of ads while others might argue that such an influence is possible because the ad agencies are not competitive.<br />
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			<strong>What are the problems and challenges you are facing in this industry? </strong><br />
			The major problem we are facing is the lack of human resource. Another problem is the industry’s growth is not healthy and professional. There is unhealthy competition going on. There are many people who talk more and work less. There is no design policy. Such a policy would not only help to promote the products but also determine the country’s image. When we talk about Nepal tourism year, Nepal is not to be promoted only by the Nepal Tourism Board. Nepal has to be sold as a product. I don’t know if anybody has even thought about this policy.</div>
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			<strong>What future do you see for the advertising industry? </strong><br />
			It’s going to be more competitive. It will be run by more professional people. Our market is very small compared to the Indian market. To survive here, agencies must have more professional people. Strategically, only strong agencies can come up with such human resource and compete. The small agencies that can’t compete won’t be able to survive in the market.<br />
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.',
			'sortorder' => '59',
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	(int) 9 => array(
		'Article' => array(
			'id' => '110',
			'article_category_id' => '40',
			'title' => '‘The Number Of Women In Advertising Is Increasing’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.</strong></div>
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			<strong>How do you set apart your ad agency among several others in the market?</strong><br />
			Advertising agencies are basically the same. Our ultimate target is to produce an advertisement that satisfies the clients and stays in the minds of the consumers for long. But definitely, we are able to set ourselves apart because of our philosophy. This philosophy defines me and my team. I and my whole team believe that we work hard, talk straight and are damn good at what we do. This confidence in the profession has established our team in this industry.</div>
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			<strong>With the number of ad agencies increasing every year, how tough has the competition become?</strong><br />
			I am happy that gradually people are realizing that the advertisement industry is a field with lots of opportunities. I don’t see it as a competition. I don’t think I am competing with anyone. Rather, I compete with myself. I have set some goals for myself and I am constantly working to meet these goals. I take each day as a challenge. I want to do better than what I did yesterday.<br />
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			<strong>What are the problems of the Nepali ad industry? </strong><br />
			A major problem is the lack of skilled human resource. First, our youths are unaware of the opportunities in advertising. They either want to work in banks or in the multinational companies. So we are not getting smart and creative Nepali people even if we pay salary and other benefits on a par with these institutions. Second, we don’t have schools or institutions where we can enhance our creativity. An advertising agency has to hire a freshman. It takes at least a year for that person to learn everything. But when he is ready, another agency takes away that person. Third, even though we hire the best person in our company, our clients do not have confidence in them. They insist on hiring a foreigner for creative concepts. Thus the money that we could have spent in our country goes outside. Mostly, this money goes to India.</div>
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			<strong>There are many ads that use the female body just as a means to get public attention. How do you see this trend?</strong> <br />
			Different people have different perceptions of the same thing. In my case, I believe showing females in an advertisement is not bad but how they are shown makes the difference. We live in a country like Nepal where we follow certain norms and values. No advertisement should cross the social limits such that it becomes unacceptable to society at the end. Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.<br />
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			<strong>Do you implement your such ideas when you make ads? </strong><br />
			Being a woman, I think a lot before doing anything. I am very careful not to tarnish the image of females through my advertisement because with every woman I associate myself. Similarly, when I think logically as an ad maker, I know there are several things in the nature that can be depicted in an advertisement in the place of women to convey the message. If anything is shown unnecessarily, consumers</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How is the participation of women in this fi eld so far? </strong><br />
			As of now, there are many women working in this field. And I think their number is increasing. But there are very few women who are investing in this field or holding top positions. I have been able to establish myself because of my confidence. I never feel weak just because I am a woman. I think I can compete with men in every aspect. Every woman should feel this way.<br />
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			<strong>Is it a fi eld suitable for women?</strong><br />
			I don’t want to categorise professions on the basis of gender. With confidence and creativity, everyone can do better in this profession. Women can compete with men in every profession. However, women still lag behind because of low self-esteem. Women should take a step forward and explore the opportunities in this sector. I strongly believe that an advertising professional can fit in any other sector because he/she gains a bit of many different experiences in this field -- marketing, designing, writing etc. This field has so much to offer to creative people.</div>
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			<strong>What should be done to attract more women to this creative fi eld?<br />
			</strong>People become successful when they work in the field of their interest. If someone has an inner desire to be a part of the advertising industry, I would welcome them. However, they have to be able to face the challenges. I urge women not to feel weak or discouraged because this is a field where creativity counts, not the physical strength.<br />
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			<strong>Who are your top clients? </strong><br />
			Chaudhary Group, Triveni Group, Sujal Foods, MariGold Foods, Khajurico Nepal are our top clients. There are several others, too. And we have some snacks and confectionaries in the list.<br />
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			<strong>Which Nepali ad do you consider the best, made either by your agency or other agencies? </strong><br />
			I consider the advertisement of U-n-Me tea to be the best advertisement of our team. I love this advertisement because it is very tender. It has a quality to touch the hearts of the consumers and remain in their minds for a long time. Among the ads made by other companies, I think the advertisement of Wai Wai Gyan Uday is the best for the beautiful amalgamation of caste and creeds of Nepal.</div>
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.',
			'sortorder' => '58',
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		'Article' => array(
			'id' => '109',
			'article_category_id' => '40',
			'title' => ''Advertising Is Growing At Breakneck Speed'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.</strong></div>
		</div>
	</div>
</div>
<p>
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<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>v-chitra won awards under fi ve categories, including the “Best Creative Agency” Award, in the latest Crity Awards. What puts this company on the top?</strong><br />
			Our motto is: Everyday is a new beginning. So for us at v-chitra, winning an award is a thing of the past. But awards do put more pressure on us, as our clients expect more from us. At v-chitra, we believe that everyday customers have new choices. Everyday our clients have to renew their relationship with their customers so as to remain the first choice. So, we strive to make that happen, everyday.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which do you think is the best advertisement campaign and why?</strong><br />
			My next campaign will be my best one. Every campaign I develop becomes a part of my learning curve. It helps me experiment with new ideas and presentation styles. So, after making a campaign, I analyse it in detail to see if it could have been better. I make sure that I implement what I find in my analysis in my next campaign.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What is the market share of v-chitra? Who are its major clients? </strong><br />
			It is very difficult to calculate our market share in percentage. But what I can tell you is we are one of the fastest growing agencies. Our Major Clients now are the Chaudhary Group – Wai Wai and Rio; Syakar Group – Honda two- and fourwheelers, Honda generators and Philips; Pashupati Paints; Teletalk – Colors Mobiles, Yeti Travels, Rosebud School, and Balterio floorings, among many others.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Different sources have different estimates about the size of Nepal’s advertising industry. What is your estimate about the size of the ad industry? </strong><br />
			Genuine figures about the size of the advertisement industry are not available. These days, different sources are making different estimates. But we cannot comment on any of the estimates or verify any of them.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you see the evolution of the advertising industry in Nepal? </strong><br />
			It is growing at break-neck speed. Nothing can stop it. But there are some constraints. The biggest constraint is the shortage of professional human resource. As far as infrastructure is concerned, there is a great chasm between man and machine. The industry has invested in physical infrastructure but not in the professionalisation of human resource. Currently, a majority of talented youth is going overseas to study. The industry has failed to develop interest in the young talents towards advertising. At the recent Crity Awards, I was happy to see a category for the “Best Creative Youth.”But that’s not enough. We have to make an advertising career just as lucrative as a banking career.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Most of the advertising agencies play the role of a mediator between the advertisers and the media. Is that all an Ad agency is supposed to do? </strong><br />
			The most important function in advertising is to create. Creating new concepts and ideas, to effectively sell the products and services is the primary objective of any agency. Everything else in an agency is support service. At v-chitra, we concentrate on providing creative solutions that are based on sound marketing strategies. Without a sound strategy, all creative concepts will fail.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>With the demand for advertisements growing, there seems to be a mushrooming of ad agencies. What makes v-chitra stand out? </strong><br />
			We try to create effective communication platforms for the products and services we represent. Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There seems to be unhealthy competition among the major players of the advertising industry in terms of retaining the clients. What do you have to say about this? </strong><br />
			The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them. But the clients need to understand that they are causing a long-term, irreparable damage to their brands by associating themselves with such agencies.</div>
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In Europe and America, online advertising has come up really strong over the past few years. Why do the ad agencies in Nepal continue to ignore online advertising? </strong><br />
			Online advertising will increase only when the base of computer and Internet users is wide enough. Clients like to spend on the kind of media that has a wide readership, audience or viewers. Having said that, I think online advertising, too, is picking up in Nepal. The growth is slow, but it’s definitely picking up.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What is the situation of the availability of professional human resource in advertising?</strong><br />
			The youth have to be shown the rewards, financial or otherwise, for them to enter this industry. An agency can offer such rewards, only if it is itself rewarded. As of now, the clients expect many of our services free of cost; they think that 15 per cent media commission is enough. Even that is shared and stretched to the limits by corporate houses that see only their profit. But they need to understand that squeezing an agency beyond the limits affects them and their brands directly because it also affects, directly, the quality of service and creativity.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the challenges and problems of the advertising industry?</strong> <br />
			The lack of professional human resource is the biggest challenge. The industry needs more smart, young and energetic professionals. Alongside, we should generate new talents who will enhance the quality and scope of advertising in Nepal.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What do you expect from the government for this industry?<br />
			</strong> Advertising is self sustaining. It is purely an economic activity that survives on entrepreneurial initiatives. Businesses today have realised the importance of advertising. All that I expect from the government is to create an ideal business environment for the industries and services to flourish. Then the advertising industry will automatically sustain itself.</div>
	</div>
</div>
<div style="width: 595px;">
	<div style="clear: both;">
		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-26',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.',
			'sortorder' => '57',
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		'Article' => array(
			'id' => '108',
			'article_category_id' => '40',
			'title' => '‘The Advertisers Need To Realise That A Single Slogan Can Work Wonders For Them.’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you view the Nepali advertising industry in the present context?</strong><br />
			The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you look at the current size of Nepal’s advertising industry which is said to be around Rs 3.5 billion?</strong><br />
			I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What has prompted the growth in the industry’s market value? </strong><br />
			This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What rate is the Nepali advertising industry growing at, on an annual basis? </strong><br />
			Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry. <br />
			<br />
			<strong>What is the advertising spending of MNCs here vis-à-vis the domestic companies? </strong><br />
			The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Could you take us through your journey of 20 years with the advertising industry?</strong><br />
			In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What are the problems and challenges that the industry faces today? </strong><br />
			We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Even though Nepali advertisements have come a long way, we are still not in the same league when compared to global advertisements. Why so? </strong><br />
			I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Does the industry follow a particular line on ethical issues? </strong><br />
			Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the accounts you are currently working with? </strong><br />
			We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&amp;G and UTL etc.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which advertisement campaign are you particularly proud of, during your entire career? </strong><br />
			It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.</div>
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		 </div>
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</div>
<div style="width: 583px;">
	 </div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2010-12-24',
			'keywords' => '',
			'description' => 'I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.',
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			'title' => '‘We Need An Advertisement Censor Board’',
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			'content' => '<div style="width: 583px; text-align: center;">
	<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/crity-award.jpg" style="margin: 0pt; padding: 0pt;" /></div>
<p>
	 </p>
<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why was AAN formed and what are its activities? </strong><br />
			AAN (Advertising Association of Nepal) was formed as the umbrella association of the advertising industry. It was set up for the protection of the rights and welfare of the industry, and to formulate the policies. It plays a vital role as a bridge between the advertisers and the media enterprises.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Being an old hand in Nepal’s advertising industry, what is your take on its evolution?</strong><br />
			The advertising industry has now transformed from being a small business sector to a full-fledged industry. Having grown consistently over the years, it has gradually asserted its role in the corporate world. It’s unimaginable today that a product/brand can establish itself in the market without the help of advertising campaigns.</div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The advertising market of Nepal stands at about Rs 3.5 billion. Is the growth in tandem with the expansion in other sectors? </strong><br />
			This augurs well for the advertising agencies, for sure. In fact, the industry value should have been around Rs 4.5 billion owing to the inflation. However, political instability has inhibited its progress to a great extent. Looking at the positive changes, even the rice brands have started advertising which never happened before. Even though the advertising market has been growing at the rate of 15 to 20 per cent annually, the time has not come for us to get particularly happy about it.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you view the unhealthy competition among the advertising agencies? </strong><br />
			It is no secret that there is unhealthy competition to get ad accounts. However, the Nepali media is the main reason behind this unhealthy competition. The number of media houses has been increasing at an alarming rate despite the market remaining comparatively small. The lack of uniformity in the market value, non-existent market planning and direct marketing, among others, are the key reasons for the unhealthy competition.<br />
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			<strong>How can the unhealthy competition for holding the clients come to an end? </strong><br />
			There must be uniformity in the market rate. Next, it has become absolutely necessary that the ad agencies be categorised. Similarly, the media should be categorised, too. The government must issue licenses taking into consideration the respective categories. AAN has been working on this in association with various media groups. For example, we have worked with the Television Broadcasting Association to fix ad tariffs. Fixing a standard ad tariff will definitely create a favourable environment for the investors and help the market sustain.<br />
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	</div>
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			<strong>Is the industry in dire need of a regulatory framework? </strong><br />
			To regulate the advertising market, an advertisement policy is mandatory, to start with. We have certain policies but they need to be updated with the changing time. The government must have a different advertising authority set-up to regulate the advertising agencies.<br />
			<strong><br />
			According to you, which Nepali ad is the best, in recent memory? </strong><br />
			Personally, I like Jagdamba Steel’s “Nepali Mann Mann ma” which incidentally, was produced by Welcome Advertising. It was voted as the most popular ad. Quality wise, I think Pepsodent ad is the best one.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In general, the youth is looking at several career options but not advertising. What could be the reasons behind this? </strong><br />
			There is no doubt that we have not been able to attract young talent. However, the youth is showing interest in being a part of the industry, off late. Colleges have included advertising as a subject in their syllabi and advertising training centres such as Infinity Advertising Training Institute, too, are being established. Therefore, we are looking at better times ahead and hope that more young people will look at advertising as a rewarding career. There is the lack of skilled manpower due to braindrain and also because the trained ones are enticed by the banks. If the advertising industry will be managed properly, most of the youngsters would be in this sector.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Why do our advertisements lack quality as well as creativity compared to the advertising standards abroad? </strong><br />
			My personal opinion is that Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity. The Nepali advertising agencies have been awarded with a number of international awards and certificates of merit since 2003. I will go as far as to say that our creative talents are second to none in South Asia. The annual Crity Awards have also encouraged the advertising agencies to produce better creative work. As the market gets more established with time, we should definitely be in a position to compete in the international market with a renewed vigour.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>Why were the recently held Crity Awards criticised and labelled as biased? </strong><br />
			Crity Awards is not confined to honouring advertising excellence. It is a celebration for the entire media industry. Any talk of branding the event as controversial is a baseless rumour. Recently, we organised a post-event programme for the ‘6th Crity Awards 2067’ where we had an interaction among the advertising agencies, media executives and journalists. We reached a conclusion that the awards ceremony did not have any reasons whatsoever to invite the wrath of the so-called critics.<br />
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			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>The corporate big-wigs are circumspect about investing in the advertising industry. How do you view this hesitation?</strong><br />
			Well, there is sufficient investment in the advertising industry and that is why it has transformed into an industry from a small business. The annual turnover of the industry is Rs 3.5 billion now. AAN has close to 140 ad agencies registered with it. Politically, once there is a peaceful environment in the country and we have a stable government in place, the investment will definitely increase. There is a good number of multinational as well as local brands looking forward to an investor friendly environment to start/resume investments. It is only a matter of time, hopefully.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Besides being an advertising administrator, you are also an entrepreneur in the industry. How are you doing on that account?</strong><br />
			Welcome Advertising is an independent agency, in operation for 21 years now. It is an authorised member of the International Network in Nepal as well as a production house. Welcome Advertising works with some of the biggest names in the market such as the Jagdamba Group, Unilever, G Phone, MS Group etc.<br />
			<br />
			<br />
			<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There has been an issue about exaggerating product features through advertisements. How do you plan to address this? </strong><br />
			The question you have asked is very relevant in the present context. These are the advertisements which are produced by the clients themselves that are courting controversies. For such problems, censorship of advertisements is the best solution that one can think of. Therefore we do need a censor board which will monitor and approve advertisements before they go to print or get aired. The government must take an initiative to this end by setting up a separate advertisement authority. Alternately, the government could give this responsibility to AAN.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2011-01-02',
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			'description' => 'Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.',
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			'article_category_id' => '40',
			'title' => 'Body And Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Most of the scientific claims made by product advertisements are derived from correlation rather than causation.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Body and Mind</strong><br />
			Even a single cell organism such as a bacterium acts as if it has a mind. It moves away from toxins and towards nutrients. For bacteria, such behavioural response is the key to survival. Humans have minds, in addition to bodies, although both serve the same purpose -- a purpose shared by every species on earth, i.e. survival and well- being. Products and services, in essence, serve the purpose of mind/body by enhancing the survival (physical, psychological and social) and the quality of survival. No wonder advertising is more and more focused on the quality of life that products bring to consumers’ lives rather than their functional attributes.<br />
			The question of mind-body has intrigued many great philosophers and scientists. While the eastern civilization had long understood the connection between mind and body, it took a long time for the West to grasp this knowledge. An increasing body of scientific evidence suggests that mind (the immaterial) and body (the material) have a symbiotic relationship. What happens in the mind has outcomes on the body, and the body has a significant role in the shaping of the mind. But for many centuries, the West embraced the concept of disembodied mind (mind separate from the body; spirit separate from matter) and this had a profound impact on many disciplines including medicine, as exemplified in the way it treated diseases (by simply focusing on the body and not the mind). It would not be wrong to assume that this mind/ body problem had a great impact on the way marketers approached advertising. As a result, for a long time, marketers practiced a rationalist-materialistic approach in advertising (e.g. nice shampoo=nice hair=nice job).In the absence of proper understanding of bodily emotions and their influence on the mind, emotions were generally overlooked as an effective approach in advertising. <br />
			Emotions help us survive and survive better. If we did not have the emotion of fear, we would walk </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/car.jpg" style="margin: 0pt; padding: 0pt; width: 280px; height: 313px;" /><br />
			<br />
			freely in the middle of the highway, though not for very long.If we did not feel good or happy, we would not get into any kind of exploration; whether it was seeking a mate or having sex when we lived in the jungle or seeking scientific discoveries while we live in a civilized world. It is very difficult for an eternally sad and depressed person to engage in such explorations. Some argue that emotions are dysfunctional, but this is true only when an emotion or its intensity is inappropriate to the situation. <br />
			With the re-emergence of the integrated theory of mind/body, and the role of body (where emotions occur) and its making of the mind (where the emotions are felt and classified as painful or pleasurable etc.), emotions have received their due importance in management and, by extension, in advertising. It is worthwhile to note that beliefs are tied with emotions. And emotions can lead to new beliefs and strengthen existing beliefs. It is our emotional connect with the brands that strengthens our belief in them.Only recently has science agreed upon a broad definition of emotions and their purpose in our lives.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Mind and Brands</strong><br />
			Products exist in the outer world. Mind exists inside us. We engage our body to interact with objects (including products) and events in the outer world.<strong> </strong> However, it is our mind, in conjunction with our body, which gives meaning to those products.<br />
			In other words, mind and products come together to make a brand. Products, or for that matter, any external objects or events, do not have much intrinsic qualities of their own. Products are generally neither good, nor bad; neither black nor white; neither beautiful nor ugly. And when they are made under the statutory quality standards, they are neither superior nor inferior. It is our mind that gives (or doesn’t give) products such qualities. <br />
			This is where advertising comes in. Advertising helps the mind embrace the</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			intended qualities of products through association or conditioning. When those intended qualities, through a repetitive exposure of messages (provided they are delivered in the proper way, here delivery of the message is the key) become hardwired in the brain, they become a belief. Beauty care products don’t make us more beautiful as much as they make us feel more beautiful, and so do the designer clothes and many other products. Does one nutritional drink make kids smarter or taller than others or does it make any smarter at all? No one can say for sure. Most of the scientific claims made by product advertisements are derived from correlation rather than causation. But if the consumers strongly believe (with strong emotions) that it does, then no reasoning can change their mind.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Brands and God</strong><br />
			Brands are much more than simply matter, much more than what they are made of. Belief is what lies underneath both God and brands; the only difference is the degree. And mind is the space where both God and brands are experienced. This is in no way meant to reduce God to mental states or to draw any parallel between God and brands, because God is much more powerful than any brand mankind has ever made.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			Only God can create the kind of belief that He does. However, I believe that any brand that can create a godlike belief will be the truly ultimate brand. Whether it is ever possible to do so is another question altogether. But that should not stop brands from trying. This effort is what will drive brands to continually evolve forever. (Panday is a Creative Consultant and winner of six Crity Advertising Awards)<br />
			 </div>
	</div>
	<div style="clear: both;">
		 </div>
</div>',
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			'description' => 'Most of the scientific claims made by product advertisements are derived from correlation rather than causation.',
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			'article_category_id' => '40',
			'title' => 'God, Belief And Brands',
			'sub_title' => '',
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			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 595px;">
	<strong>In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			Have you seen God? This is a question I have faced many times in life. As a theist, I find it difficult to answer this because I haven’t seen God. But not seeing God or rather not being able to see Him hasn’t changed my belief in Him. My inability to see God can be attributed to many reasons. Perhaps God hasn’t endowed me with senses (vision, in particular) strong enough to see Him. Perhaps God doesn’t exist in the form and shape that my senses are attuned to. Humans have the instinct to anthropomorphise objects. Everything has to be human like. We look for faces in the clouds and in cars. In marketing, we attribute human-like characteristics to products. But, God doesn’t necessarily have to be a carbon based organism governed by the laws of the cosmos.<br />
			As for science, it has a concrete theory neither about the origins of mankind and the universe, nor about the brain which builds such theories. So, for science to come to a conclusion about God would be a bit too premature. Science, especially narrow science, rejects what it doesn’t know and ignores what it doesn’t understand. For centuries, science chose to ignore the issue of emotions. And science continues to ignore the phenomenon of consciousness (i.e. awareness in the most basic sense ) because neither can it fully understand this phenomenon , nor can it explain how it works inside the brain. For the time being, let science be science and God be God. At the very core, both science and God function as one, because both seek the same purpose - survival and well-being of mankind.<br />
			For a layman like me, the questions such as the evidence of God’s existence and whether God created this universe and the species or they evolved are not worth pursuing. Even if the issue of Creation vs. Evolution is ultimately resolved, it will not be the end of God or Science. Both will continue playing significant roles in our lives as long as we continue being an existence made of mind and matter. So, instead of the big questions, what I prefer to be asked is whether I believe in God or not? To that, my answer will always be a resounding YES. I do believe that God does exist.<br />
			Belief, in itself, is nothing less than a miracle. Belief is healing, not only psychologically but also physically. Belief in God gives us the strength to follow a moral path. Belief is empowering. Belief is comforting. In times of crisis, belief in God has helped many, including me, maintain sanity in life.And my belief is not only limited to God; it extends to scientists and even brands, whose cause I champion. If I did not believe in scientists who said that Earth will not collide with other planets soon, at least not during my lifetime,<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<img alt="" height="454" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/pic-ss.jpg" style="margin: 0pt; padding: 0pt;" width="280" /> <br />
			&nbsp;then I would have ceased to exist long ago as a result of anxiety disorder. In fact, most of the scientific truths are simply beliefs for the vast majority of people.<br />
			For most of us, the existence of atoms, quarks or strings are beliefs and not scientific truths because by definition we ought to have observed them empirically in order to account them as scientific truths. But common sense dictates that it is best to leave science to scientists, even if they come up with a new theory every now and then.<br />
			Let me clarify that this discussion is neither about God nor about science, and it is certainly not against the non-believers. They are as much right in their (dis-) belief as I am in my belief. This article is mainly about belief because this is what makes a brand out of a product. In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.Medical science presents a classic example of the power of belief -- the placebo effect, where patients get better by ingesting a sugar pill, while they believe (falsely) that they are getting medicine. This is what some scientists call the belief effect. In one study, a psychology professor at the University of Connecticut found that ‘eighty percent of the effect of antidepressants, as measured in clinical trials, could be attributed to the placebo effect.’ This is the power of belief.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<p>
	 </p>
<div style="width: 595px;">
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			'title' => '‘We Must Have Small Number Of States For Financial Feasibility’',
			'sub_title' => '',
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	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Bijaya Nath Bhattarai.jpg" style="width: 153px; height: 173px;" vspace="2" />Bijaya Nath Bhattarai</b></div>
<div style="text-align: justify;">
	Former Governor, Nepal Rastra Bank</div>
<div style="text-align: justify;">
	The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the monetary aspect of federal Nepal?</strong></div>
<div style="text-align: justify;">
	Nepal Rastra Bank (NRB) is the authority for all monetary issues in Nepal. NRB has its branches and sub branches spread all over the country. It not only works as a fiscal agent but also facilitates commercial banks through operating currency chests. It regulates the money supply, flow of liquidity and supervises and regulates banks and financial institutions. In the federal structure too, the currency in use will be the same and there will be a solitary central bank which will be responsible for providing all central banking functions to every state in the country. There won’t be separate currencies for individual states. But all monetary issues should be controlled by a central regulator i.e. Nepal Rastra Bank.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>In a federal structure, the state revenue, expenditure and debts will have to be shared between central and local governments. How practically feasible will this be for Nepal?</strong></div>
<div style="text-align: justify;">
	As far as I know, the countries with federal structure have different forms of taxation. Some are levied by the central government while some others are at the states and municipal levels. There are three types of taxation. The municipal taxes would be the income of the particular municipality. Similarly, state taxes would be the revenue of the states. The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley. Then come the Terai hubs namely Bhairahawa, Biratnagar, Birgunj and Nepalgunj followed by towns like Pokhara and Hetauda. The economic activities in other areas are minimal. Therefore, resource mobilisation and sharing will be difficult proposition for federal Nepal. On the question of debt management, there needs to be an agreement on issuance of debt, use of debt and final repayment of debt. Most of the country’s debt issuance and repayment is at the central government level.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The rising recurrent cost is already eating up the country’s revenue generation capacity. With governments at the provincial levels, the overall administrative and recurrent public expenditure is likely to shoot up with no commensurate growth in revenue. Wouldn’t this be an alarming situation?</strong></div>
<div style="text-align: justify;">
	Resources remaining after fulfilling the recurrent expenditure are used in development activities. This is supplemented by the resources and means obtained from foreign aid and loans for development activities. The resources thus mobilised would be further divided in the federal system. Then there would be chances for even less resources and means left for development projects. The revenue grows along with the economic development of the country. If the country under federal system moves ahead and develops economically, the national income will grow. We can take Switzerland as an example where the per capita income is around US$ 34,000. But our country’s situation is such that federal structure can actually lead to resource crunch. The far western region, especially Karnali, is least developed. There are other under developed regions too where the conflict had escalated due to unequal distribution of income and resources. In such areas, the resources injected have to be comparatively higher. This would leave very little resources at the centre’s disposal. It would be ideal to have a small number of states and small state structures. Only then will we be able to mobilise resources effectively. At present, I see a faint possibility of introducing new forms of taxation for increasing resources. During the past decade or so, there have been very few new investments. Even now, the investment environment is gloomy for domestic as well as foreign investors. Foreign aid and internal resources mobilised by the state have not been effectively utilised. As a result, there is a liquidity crisis in the financial sector. The government has not been able to address budgetary issues well. There is fiscal imprudence which is reflected by large non-budgetary expense at the central level. It will be necessary to maintain strict fiscal discipline in a federal system. The non-budgetary expense has to be lowered to a minimum. If we can do that and utilise resources effectively for development, the situation may improve over the years as the economy will then grow. However, the current resource distribution pattern could invite complications.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>How can we decrease current expenses so that more resources can be allocated in development activities?</strong></div>
<div style="text-align: justify;">
	We have very limited resources. So, when we want to divide them among the centre and the states, there could be complications. While making a transition to the federal structure, we should make sure that the structure envisioned by the constitution is small and dynamic. For example, there are more than 600 representatives in our existing Constituent Assembly. This number is massive given the size of our country. Compare this figure with our neighbouring country India which has 552 members in its lower house of parliament. It is said that our federal parliament will follow a bicameral system, for greater representation of every region. The number of representatives should be brought down significantly from the present one to ensure low governance costs. Also the size of the provincial government must be small and effective. If this is not ensured, very little resources would be left for development activities after dividing them among central and regional governments.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>There has been no real debate on the economics of Nepal’s federal structure. Given this, how can we be definite about the direction we are heading?</strong></div>
<div style="text-align: justify;">
	I agree that there must be a serious debate on this issue. The statesmen and the CA too have not discussed fiscal federalism seriously. Major issues such as the availability of resources and means and the model of federal structure must be discussed now. I personally feel that without serious debates, going for federalism might backfire on the country in the long run. Nepal has limited resources. Therefore, the demarcation of states based on ethnicity could prove to be a dangerous proposition. It will definitely promote ethnic conflict among our own people. And we definitely don’t want Nepal to follow the example of Yugoslavia. The states must be divided based on economic reality.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What reforms do you think are required once we go federal?</strong></div>
<div style="text-align: justify;">
	Well, there are a lot of things that need to be reformed. Our GDP and tax ratio are lower compared to many countries. We can look at increasing tax compliance. In the recent past, media has reported tax evasion by big business houses. All citizens must feel that paying taxes is their duty and it should not be evaded. Greater tax generation will enable the state to mobilise adequate resources for development and social causes. Nepal has started providing social security allowances for elderly people. In the coming days, the state can offer free medicines and health services to the economically deprived people. For that, a sense of responsibility in people must develop to ensure tax compliance. If the government can take the role of a facilitator and focus its investment in infrastructure, Nepal can experience a prosperous economic development. The problems that we face today are that of infrastructure, labour relations and power. As per reports, around 200 small industries have closed shop owing to power shortage. Similarly, many industries have experienced decline in output due to labour unrest. The political parties must unite for national and development issues irrespective of their ideological differences.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Being one of the poorest countries in the world where there is little revenue left for development after incurring current expenditures, can we afford a federal form of government?</strong></div>
<p style="text-align: justify;">
	If we see economically, it is very difficult due to the resource constraints. As and when we enter the federal structure, it will be necessary to differentiate federal and state taxes. Let’s take the example of the USA where the sales taxes are collected by the states. Similarly, the municipal and income taxes are collected, respectively, by the municipalities and the federal government. Our main sources of revenue are VAT, customs duties and income tax. The land tax, rental tax and other smaller taxes are collected by the municipalities. I think the problem in Nepal arises due to centralisation. The rights must be decentralised. If small structure and decentralisation of rights can be ensured, there is no need to create new states in the name of federalism. There are districts where there have been no economic and development activities. We have seen in the past also that the situation of conflict was invited by economic inequality. This inequality is due to the imbalance in economic opportunities for different regions and the failure of implementing economic development plans. The mid western and far western regions are the most backward regions of the country. Despite huge potential, Karnali region remains grossly underdeveloped. If the planners in the past had successfully taken the decentralising path, the people wouldn’t have been left dissatisfied. This happened due to huge economic disparity between the various regions. An economically decentralised country holds more promise than a&nbsp; federal structure.</p>',
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			'title' => '‘Development In One Region Should Complement Development In Another’',
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	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Pitamber Sharma.jpg" style="width: 163px; height: 182px;" vspace="2" />Dr Pitamber Sharma</b></div>
<div style="text-align: justify;">
	Geographer and Regional Planner</div>
<div style="text-align: justify;">
	There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The interim constitution says that the states, once created, must be autonomous. To ensure such autonomy also in the economic field, the states must have ample resources. How do you see the feasibility of such economic autonomy of the proposed states?</strong></div>
<div style="text-align: justify;">
	Being self-reliant will depend on the number of states and the criteria on which they will be created. In Nepal, autonomy is interpreted only in the political sense. It is often forgotten that political autonomy remains circumscribed in the lack of economic autonomy. If a state or province has to rely on the centre for all its development needs, how can it exercise autonomy in political or economic decision-making? All states may not have all the resources. However, care should be taken that each state is carved, as much as possible, in a way that it has at least some basic resources to complement its development efforts. There are 14 states proposed by the Constituent Assembly’s state restructuring committee. Many of these proposed states are simply not viable economically or politically. I believe that in Nepal we still have enough scope to design states as planning units. The foresight we show today will make it easier to deal with the problems of tomorrow.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the appropriate geographical delineation for distribution of natural resources among the new states?</strong></div>
<div style="text-align: justify;">
	Nepal is a country with enormous geographical and topographical diversity. This diversity in many ways has determined the type and distribution of natural resources. The Terai plain as well as the Inner Terai are rich in agricultural resources. This area also has a unique wildlife. Similarly, the hills and mountains are rich in biodiversity resources, hydro power, nature- and culture-based tourism resources etc. The element that links and complements the geographical diversity between the hills and the plains is the hydrological system – the major river basins of Nepal. There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources. However, we do not live in an ideal world. While natural resource endowment is important, equally important are the historic aspirations of the diverse communities that inhabit the different regions. These aspirations also need to be addressed in the formation of states. Nepal’s move from a unitary state to a federal one is dictated in many ways by these aspirations.<span>&nbsp;&nbsp; <br />
	<br />
	</span></div>
<div style="text-align: justify;">
	In a country like Nepal, the crux of the issue of federalisation is that the development in one geographical and resource region has to complement the development of another region. That is the basis on which the resources need to be considered in designing federal states.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Some political parties are strongly raising the demand for states based on ethnicities. How challenging will it be to manage and distribute the resources along these lines instead of geography- and resource-based states?</strong></div>
<div style="text-align: justify;">
	The political discourse on federalisation in Nepal has been dominated primarily by the issue of ethnicity. Not much attention has been paid to the attributes of an ethnic state, or even what comprises an ethnic state. Some people are scared of the word ethnicity altogether. The reality is that ethnicity makes a significant difference in the lives of people.&nbsp;Nepal has 100 designated ethnic groups according to the 2001 census. And there are 92 languages spoken in the country. Major ethnic/caste groups in Nepal have their territories of traditional habitation. The groups have settled continuously, are relatively concentrated, and have a significant and dominant, if not majority presence in particular areas. This is true for all large and small aadibasi and janajati groups and the Chhetris. However, the dalits do not have their own distinguished geographical territory or a separate identity by virtue of language.&nbsp;This is in spite of the fact that they comprise the third largest ethnic/caste group and the most marginalised population in Nepal.<br />
	 </div>
<div style="text-align: justify;">
	If all major ethnic groups in Nepal were to have their own states, it would be an enormous challenge to manage and distribute natural resources. Ethnic boundaries rarely coincide with resource boundaries. Even macro watershed would be divided among different ethnic domains. All hydropower resources would be in the domain of hill/mountain ethnic groups, with none in the Terai. The capacity of ethnic states to deal with the issues of mitigation and adaptation to climate change would be extremely limited. It is because this would require a coordinated watershed level response.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you think that the redistribution of resources may ignite resource conflict after the formation of new federal states?</strong></div>
<div style="text-align: justify;">
	As I have mentioned earlier, much would depend on the criteria used in the designation of states, and of course the number of states created. The experience of other countries show that conflicts over control, regulation, use, benefit and maintenance of resources, particularly water, are among the common conflicts resulting from federalisation. Constitutional provisions are therefore made for arbitration and resolution of such conflicts. (Highlight.) The redistribution of resources is ensured mainly through inter-governmental transfers. However, to assure that the central government has enough resources to offset imbalances between the states, some clarity is required with respect to the share of local/state revenue going to the central treasury.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, you think the 14 states proposed by the CA’s State Restructuring Committee is not practical?</strong></div>
<div style="text-align: justify;">
	The idea of 14 states proposed in the draft report of the Constituent Assembly’s State Restructuring Committee, in my view, is neither rational nor appropriate. For a country of Nepal’s size, 14 states will be too many.&nbsp;If ethnicity is the only criteria considered for the designation of states, I see no justification for at least four of the proposed states.&nbsp;Jadan has a population of 50,000 while Bhotes comprise only 1.2 per cent of Nepal’s population. Sherpas total only 90,000 people and a mere 21 percent of Nepal’s total Sherpa population live in the proposed state. Additionally, Sunkoshi and Narayani have as mixed a population as any other ethnic state. One of the major problems with the report is that it does not lay down any principles for states’ formation. For example, when does an ethnic group merit the status of a state as opposed to an autonomous region within a state?<span>&nbsp;&nbsp; The report does not provide answers to these kinds of questions.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Running and maintaining the state affairs is a costly proposition. How would the states help in mobilising resources for the nation while meeting their own recurring costs?</strong></div>
<div style="text-align: justify;">
	At present, only nine among the 75 districts are in a position to generate revenues that go beyond meeting their recurrent expenditures. In other words, if all the proposed states of Nepal are to be in a position of meeting their recurrent expenditures and generate a surplus, it is basically from the revenue from these nine districts that will have to be somehow apportioned among the states. As I said earlier, inter-governmental transfers will have to play the key role in maintaining the financial viability of the states. Inter-governmental transfers should ensure that (a) all expenditure assignments of the states can be met through these grants and (b) that it should also provide the basis for basic long-term investments required for mobilising resources. In Nepal’s case, for example, the states falling under the current mid and far-western regions will need massive investments from the centre for at least 10 to 15 years, by which time they could be self-sustaining. Investments by the centre on key infrastructures in the state will remain crucial. One of the problems that the state governments in poorer states will have to face is the flight of capital as capital flies out from low-yielding states to high-yielding states. A situation can easily arise where the poor states become poorer while the rich ones become richer. This will emerge as a big challenge in the management of federalism. The success of the federalism enterprise may as well lie in the extent to which they are enabled to mobilise resources.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What may the reason that there is no meaningful debate taking place on state restructuring and the form of federal system?</strong></div>
<div style="text-align: justify;">
	The political parties are ignoring the most critical and operational issues of federalism. It was Maoists who raised the issue of the federal republic and turned it into a national agenda, and they did it right. The rationale for the federal republic was to break, once and for all, the shackles of a feudal, overtly centralised, monarchic, predatory state. This was a historic achievement. For the first time in nearly two-and-a-half centuries, it set the stage for redefining and reimagining Nepal. But the Maoist perception went astray because of taking ethnicity as the sole basis for federalisation. As a result, the question of resources, development and meaningful devolution of power remained ignored. The two other major political parties – the UML and the Nepali Congress – are still taking time to fully own the idea of a federal Nepal.&nbsp;It is evident from their reactive approach to the whole issue, so much so that their official positions are not yet clear. The Madhes based political parties too made the federal agenda their main political plank. But they only took it as far as it challenged the colonial flavour of the policies of the hill-centred Nepali state vis-a-vis the Madhes. The ‘one Madhes, one state’ slogan was raised as a vehicle for economically circumscribing the hills and making it a hostage of the Madhes, however defined. The ethnic dimension is critical and important but no less important is the issue of dealing with poverty, exclusion, and in a fundamental sense, the mode and meaning of development. The two issues are no doubt linked but one cannot be a substitute for the other.<br />
	 </div>
<div style="text-align: justify;">
	Thus the debate has centred on issues of identity and emotion rather than the more substantive issues of strategy and resources for development. I believe that once the dust settles and the states come into being, development will once again emerge as the agenda around which politics will revolve.<span>&nbsp;&nbsp; </span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What should be the main objective of federalism in Nepal’s context?</strong></div>
<div style="text-align: justify;">
	The objective of federalism in Nepal should be the creation of a prosperous country which will benefit all, irrespective of ethnicity, caste or class. The rational for federalism in Nepal has to rest on three premises. The first is the recognition of the ethnic, linguistic, cultural and regional identity and aspirations of the diverse population groups that inhabit Nepal. For over two centuries, the Nepali speaking, upper caste hill dwellers following the Hindu faith namely Bahun and Chhetri enjoyed the privileged patronage of the Nepali state.&nbsp;Shared ownership of the state requires that progressive ethnic, cultural and regional identities are given due recognition. The second is to facilitate rapid, equitable and inclusive development so that livelihoods of all, and particularly of the vulnerable, marginalised and disadvantaged groups, can be rapidly improved. This requires that adequate attention is paid to natural and human resources that can provide the basis for equitable and inclusive development. The third is to decentralise and devolve power to the lowest possible level so that the roots of a truly participatory and accountable democracy are strengthened.</div>
<p style="text-align: justify;">
	Two concepts, I believe, can help us move towards a federalisation that takes identity, inclusive development and devolution as the point of departure.&nbsp;The first is the concept of ethnic/caste groups that have suffered from historic discrimination and have a dominant presence in geographically adjacent and contiguous areas. The second is the concept of special autonomous areas. Following the first concept, federal units can be formed around a few major ethnic/caste/language group habitats that have historically remained in adjacent or contiguous areas, and have developed a sense of ethnic affinity over time. Such federal units can incorporate areas with existing or potentially sustainable natural resource as well as economic base. Following the second concept, special autonomous areas can be designated within federal units with particular ethnic/caste dominance.</p>',
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			'title' => '‘Political Parties Must Honour The Constitutional Provision And Form State Restructuring Committee',
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	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Prakash Chandra Lohani.jpg" style="width: 162px; height: 180px;" vspace="2" />Dr Prakash Chandra Lohani</b></div>
<div style="text-align: justify;">
	Former Foreign and Finance Minister and Co-Chairman of Rastriya Janashakti Party</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it.<br />
	 </div>
<div style="text-align: justify;">
	<strong>The state restructuring committee has not been formed yet. What are the reasons behind it?</strong></div>
<div style="text-align: justify;">
	It is clearly specified in the interim constitution that we should have a state restructuring committee. So, it is the responsibility of the government as well as of the political parties to ensure that the state restructuring committee is formed. The government as well as the major political parties have not fulfilled this responsibility. In fact, the state restructuring committee should have been formed while the Constituent Assembly was in its first session. The fact that this has not been done as yet is a reminder of our negligence towards the constitutional provision. I think when Pushpa Kamal Dahal was the prime minister, he tried to form it. He nominated Dr Ganesh Gurung to head it but the parties concerned were not able to agree with the names of other members. So, the body formed with Dr Gurung as its head did not take the full shape. It became a one-man defunct body. After Dahal left, Madhav Kumar Nepal took over the reins. At that time also, smaller parties like ours have been constantly telling the bigger parties to meet this constitutional provision.<br />
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it. When madhav Nepal was the Prime Minister, I don’t know if he ever tried to push this process forward. Most of the time, his government and the Maoists were at loggerheads with each other. There was no real initiative to draft the constitution. They spent their energy in the struggle for power. That is the reason why the state restructuring commission has not been formed yet. In fact, it was not an agenda of priority for the Maoists, Nepali Congress and the UML.<br />
	 </div>
<div style="text-align: justify;">
	They simply ignored this issue. Now, after the year-long extension of the Constituent Asembly, normally one would expect them to try and form this committee. However, they have ignored this again and we are now left with only two-and-a-half months from the deadline for promulgating the constitution. And still there is no seriousness about satisfying this constitutional provision. This is a sad story, to say the least. Now, the Maoists are saying that it doesn’t make any sense to form the state restructuring commission because the thematic committee working on state restructuring has already come out with its report. But what we have been saying is that this is a constitutional provision. If this provision has to be ignored, then people must prepare a proposal, make a constitutional amendment, take it to the parliament and remove this article from the constitution. As long as this article is there, we have to make sure that we honour it. I am sure this is an issue that will come up in our subcommittee meeting soon.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, it would not be possible to go ahead with the state restructuring without the commission’s report?</strong></div>
<div style="text-align: justify;">
	The state restructuring commission has to submit its recommendation before we make a final decision on state formation in this country and on the number and size of the provinces and many other issues related to federalism. We cannot ignore this constitutional provision. The responsibilities of the committee are to advice and provide suggestions.<br />
	 </div>
<div style="text-align: justify;">
	The constituent assembly has a right to either reject or accept them. Therefore, we must give them the opportunities as specified in the constitution. I think if we go about deciding the number of states without the commission’s recommendation that would be ignoring the provision of the constitution. It would neither be proper or correct nor acceptable.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Why has there been no meaningful debate held so far for state restructuring?</strong></div>
<div style="text-align: justify;">
	It’s because different political parties have different propositions. Their formal proposition is different from what they say in informal interactions. This is also the part of the problem. I think if we have a state restructuring committee, it would help solve some of these contradictions. There has not been serious debate among the political parties primarily because the three major political parties have not given attention to this issue. They are involved in power struggle all the time and busy speculating on who would be the next prime minister. In a way, it is their sense of irresponsibility and negligence towards the commitment made to the people when the constituent assembly elections were held.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Which model of fiscal federalism would be most appropriate for Nepal?</strong></div>
<div style="text-align: justify;">
	It is the question of devolution of authority. One of the more important aspects of this is the financial authority. Till now, Nepal has been a centralised state. Most of the resources are collected by the central government. Now, we want to make sure that we devolve fiscal authority to states and also to the village development committees (VDC) so that they can raise resources on their own. I personally think that if the central government raises 60 per cent resources, remaining 40 per cent would be raised by the local government bodies, states and the VDCs.&nbsp;We have to work along the line of fixing such a ratio. I think 60:40 ratio would be quite logical.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you see the danger of improper distribution of revenue in federal Nepal as the source of revenue would not be uniform in all the states?</strong></div>
<div style="text-align: justify;">
	I think we also need a financially strong central government. This is because, inevitably, some provinces are going to be financially weak. They may have the resources but these are largely unexploited. For example, in the hilly areas, hydro resources are there but it will take time to exploit them.In the mean time, we will have to find a way to compensate them for the lack of resources. That needs transfers from the central government.</div>
<div style="text-align: justify;">
	It will work out depending on population, human development index and so many other relevant variables. We have to give a sense of equity and justice to people in all the provinces of this country.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The idea of ethnicity based federal structure has courted big controversy. How does ethinicity-based federal structure fare in terms of fiscal federalism?</strong></div>
<div style="text-align: justify;">
	There is a big controversy on this issue. No doubt about that. Different political parties have recommended number of provinces varying from seven to 14. One of the remarkable things is that no particular ethnic group is in the majority in their proposed respective states. Take the case of Limbuwan, for example. In Limbuwan, you have a total of 30 to 35 per cent Rais and Limbus if you combine both the communities. The rest 60 to 70 per cent are non-Limbus. Therefore, to go ahead with the idea of ethnic states, in a way, might alienate the other majority population and may create ground for conflict.<br />
	 </div>
<div style="text-align: justify;">
	The important thing is representation in the provincial and national parliament in line with the ethnic distribution. We have to assure and be clear on that point. Once you achieve that, I don’t think we should stress too much about this ethnic issue. People want representation in the power structure. And that representation must reflect the underlying distribution of the ethnic population. Once there is the electoral system, it makes sure that the ethnic representation is there in line with their ethnic distribution of population in the country. I think it would solve a lot of problems. Once you move in this direction, emphasis on ethnicity alone is going to wield less importance.</div>',
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	Small sized loan sans collateral, group savings, small-scale entrepreneurs,&nbsp; diversified utilisation and simple and flexible terms on credit are among the features of micro-finance companies. </p>',
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Hari Bhakta Upadhyay Adhikari</span></b></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Gemstone Expert</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;"><span style="letter-spacing: -0.1pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with.</span> <br />
	</span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Being a civil engineer, what attracted you towards gemstones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In my 25 years long career with the government, I reached a lot of places in Nepal. I was interested in herbs too. Working as an engineer, I also went on gathering information on gemstones of Nepal. With a technical background, it was easier for me to understand them. After I took up voluntary retirement from government job in 1991, I began intensive study on gemstones. I studied a lot of literatures on gemstones. Based on my study of 18 years, I have written two volumes of a book on gemstones named ‘Nepal Ratna’. These books are helpful to gain knowledge on precious stones.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Where did you find the major concentration of such stones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In Kaligandaki river, ruby, sapphire, tourmaline and jasper are available. Trishuli river is a treasure house of Topaz. Madi, Phidim and Karnali rivers have garnet. Narayani, Trishuli and Mahakali rivers have kyanite, quartz and jasper. Taplejung, Manang, Sankhuwasabha, Bhojpur, Jajarkot, Achham, Bardiya, Kalikot, Lamjung and Dhankuta have emerald, ruby, sapphire, beryl and other precious stone. Similarly, corundum, topaz, quartz, garnet, aquamarine, opal, jade, moonstone are found in Nepali mountains from east to west. In Ganesh Himal, I had found a mountain of ruby.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">You ‘had’ found a mountain of ruby. Isn’t it there now?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Nepal Metal Company was established in 1976 with Hyderabad Industries Limited, Government of Nepal and ordinary Nepali people as shareholders.&nbsp; After Nepal Government and the Indian company, the largest shareholder was Mohan Gopal Khetan and he was very influential in the company. I too had some shares. At the 14th annual general meeting of the company in 1995, I raised a strong voice that the ruby extracted from Ganesh Himal was being exported without authorisation. The meeting formed a seven member investigation committee with me as its head. But none of the members agreed to go to Ganesh Himal with me to investigate. Later I found that someone had told them that Mohan Gopal Khetan might cause them great harm. So, I too did not go there at that time. Later in 1996 when I went there, the hillock that I had identified earlier as the deposit of ruby was blasted out. The mound of 15 metre width and eight metre height was estimated to contain 19 metric tonnes of ruby. However, though the ruby from the hill was taken away like that, there still is a very high potential of ruby deposit in the 60 hectares area around that destroyed hill.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What would be the value of the ruby there? </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Ruby now is priced at Rs 17,000 per carat. Five carats make one gram. So one gram is worth Rs 85,000. That means, the 19 tonnes of ruby converted into money at today’s price would be sufficient to meet the government budget of Nepal for 500 years at today’s budget size. The then royal palace played major role in taking out rubies from there.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Despite such immense availability of gemstones, why is nothing being done?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">There is utter lack of human resource with good knowledge of gemstones. Even the department of mines under the government does not have a gemstone expert. There are no academic courses in this field so there is no possibility of gemstone experts being developed for the future. The government must do something urgently in this.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What have you done personally towards it?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">After I began studying gemstones, I felt the serious lack of human resource. Then at my own cost, I established Gemstone Research and Training Centre and began providing trainings. But, now I have discontinued it due to the power outage. Till now I have trained 80 persons on identifying gemstones, cutting and polishing them, cutting with the use of modern machines for export quality finish, carving hole with the ultrasonic drill machine and identifying and certifying the stones. I have been providing trainings too going to different offices under the Department of Cottage and Small Industries. And I have also designed a training course to be given by the Department on finishing gemstones.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What are your trainees doing now?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Some are running their own businesses. Some others are working in this sector at Thamel and in Bhaktapur and Surkhet.&nbsp; But most of them are not in this field. Due to the lack of capital, they have not been able to mine the stones and run factories to process them.&nbsp; <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What about government licensed gemstone exploration or mining?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">&nbsp;There are very few people who are in gemstone mining with government license.&nbsp; Most of the mines are illegal. I have heard that tonnes of raw gemstones are exported every month to Jaipur in India.&nbsp; Nepali ruby, sapphire, tourmaline and aquamarine are exported to Japan, Germany, America, Singapore, Switzerland, Belgium, Sri Lanka and South Africa. But I have not come to know anyone who holds a license to mine ruby, sapphire and aquamarine. Quartz is mined at Dhading, Gorkha, Rasuwa, Darchula, Bajhang and Sindhupalchowk. Similarly, aquamarine is collected from Taplejung and Rasuwa while Tourmaline is collected from Manang and Jajarkot. Garnet is mined from Sankhuwasabha and Ruby and Quartz from Dhading.&nbsp; These stones are mined without license and exported. The government has failed to see that.</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Didn’t you talk to the government for cooperation on locating and mining the gemstone deposits?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">I talked to Sahana Pradhan and Hridayesh Tripathi when they were Ministers of Industry but they declined the request citing the lack of budget. I have talked to the Department of Mines and Geology time and again. But nobody cares. In fact the Department does not have experts. So I am focused on producing qualified human resource.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What do you suggest as the most important thing to do in this field?&nbsp; </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with. I am 81 years old now. I wish to see three training centres coming into operation within my lifetime. If that happens, hundreds of thousands of Nepalis would get employed and Nepal’s economy would turn around.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">How do you see the future of gemstones in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">Water resource helps the economy in an indirect way. The electricity generated from water should be first used to run factories and produce goods which can then be exported to get the money. But, gemstones can be sold straight from the mine. Nothing is being done in Nepal in this sector. I believe the kyanite (aluminium silicate) deposit of Nepal can meet the aluminium demand of the entire world. Similarly, gemstone kyanite costs US $ 1500 a gram. A truck full of such kyanite is illegally taken to India every month. The Customs Department and the police do not know about its value and usage as they are ignorant about the precious stones. The illegal mining and export must be stopped. If the government involves the private sector in this field, it can contribute more than hydro and herb resources do to the economy. </span><br />
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			'description' => 'Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical',
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<p style="text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Krishna Prasad Kafle</span></b><br />
	</span></span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Mines Expert &amp;</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Former Superintendent Geologist, Department of Mines and Geology</span></span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the situation of the mineral resources in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">During the Rana period, minerals like iron, copper, cobalt, lead, zinc were mined in different places. It was a compulsion to operate these mines as there was no other way to get such minerals in Nepal. Charcoal was used as the fuel to heat the ore to extract iron and copper from the ore. Such metals were used for making household utensils and farm implements. Iron extracted from Thoshey mine of today’s Ramechhap district was used for making gun barrels by the then government. Historical records show that nine barrels were produced in a day. The remains of the factory and traces of mine excavation can still be found there. Similarly copper and lead were mined in Baglung, Gulmi and Myagdi, and cobalt was mined in Arghakhanchi and Gulmi. Copper is available in many places. Copper mines of Marma, Khandeshwori and Siddhi Khani in the eastern Nepal are some of the well-known ones. In Myagdi and Baglung a lot of work was done on mining. Bhainse and Pandav mines in Myagdi district are a few examples. However, they were all in small scale. The studies in the course of 50 years by the Department of Mines and Geology have identified various minerals found in Nepal. Among them, some may not be viable to mine commercially at present but have possibility in the future when the price of such minerals may increase. As more studies are conducted and technology becomes cheaper, we may go ahead with excavation for such minerals.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What have these studies found about the estimated size of mineral deposits in Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The deposit size differs for different minerals. If you look at the iron mine of Fulchowki of Lalitpur, it is around 10 million tonnes. Similarly Thoshey mine has around 16 million tonnes of iron as per the estimate by the Department which is supported also by the study made by a new mining company interested in this mine. The Department has located lead, zinc, copper in different places. In non-metallic segment, limestone, used as basic raw material for cement industry, is found in huge quantity. A deposit of 1.25 billion tonnes of limestone has been proved and places have been identified with probable deposit of 1.50 billion tonnes. Based on these data, 29 licences have been issued for limestone excavation and 196 licenses for limestone exploration. Hetauda Cement, Udayapur Cement, Himal Cement and Annapurna Cement are the examples of the cement factories that are utilising the Nepali limestone.&nbsp; Now additional cement factories are set up or are being set up in Dang, Salyan and Rolpa utilising the limestone mines there. In Arghakhanchi, Dynasty Cement Company is already in operation. In Udayapur and Hetauda, new factories based on Nepali limestone mines are coming up. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Now many cement factories are using clinker imported from India. Currently 40 to 50 per cent of Nepal’s cement demand is supplied by local factories. As the new infrastructures are being set up in the country, the demand for cement is going up in the similar speed. So, cement industry have good prospects in Nepal. This increased demand can be met by cement produced in Nepal with Nepali limestone. Thus Nepal can be self-reliant on cement with the available limestone deposit.&nbsp; Gypsum is the other mineral required for cement production. Though that is not found in a large quantity so far, there is possibility to find it. Explorations and studies must be continued. Other minerals required for cement industry are coal and iron. Both of them are available in Nepal. If government issues licence and no local problems arise, Thoshey mine can supply the iron to Nepali cement industry. Gypsum can be imported from Bhutan and India. There is possibility to find it in the area around Pyuthan, Dailekh and Surkhet.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Then why could not Nepal cash in this wealth so far? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash in this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. The government has issued 451 licences for exploration of minerals and 80 more licenses are issued for excavation. Recently, the awareness about the importance of this sector is growing.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">People say that though the types of minerals found in Nepal is very large, the size of the deposits are so small that it is not economical to mine them. What is the exact situation? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">When we were studying a copper mine in Dadeldhura, we found gold, copper, tungsten, nickel, molybdenum, bismuth and even cobalt from the same mine. It is a poly-metal sulphide deposit which can be used as multi mineral mine.&nbsp; The tendency is such that we look for a certain mineral and when we notice that the deposit size of that mineral is not economical, we leave that site without trying to explore about the presence of any other mineral there. There was a UNDP project conducted to explore minerals in Nepal and that too concentrated only on copper, lead and zinc, which are called base metals. If the project had explored for other minerals as well on the same mines that would have yielded significant benefits. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Places like Myagdi, Baglung, Parbat, Gorkha, Solukhumbu and Ilam have mineral deposits. Gemstones are available in Sankhuwasabha, Dhading, Rasuwa, Jajarkot, etc. Different places are suitable for different minerals. The minerals are scattered all over, from the mountains to the Terai. We have failed to make a commercial use of them. Had we utilised them in time, we would have made tremendous economic progress already. For example, the best high-grade magnesite deposit of South Asia is in Dolakha district. But unfortunately we failed to excavate it on time and take it to the market. With scientific advancements, even the medium grade magnesite has now become as good as the high-grade. As we don’t have internal market for dead burnt magnetite bricks, we have to export it to other countries where such bricks are used in industrial units that have high temperature furnaces. Such bricks can resist up to 2300<sup>0</sup> Celsius temperature while normal bricks can’t resist more than 700<sup>0</sup> Celsius. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What about other minerals such as gold? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The gold deposit in Nepali mines is very small. However, gold is priced very high. Therefore, though the quality of gold that can be mined in Nepal may be small, its value is high. Therefore, even if the deposit of this mineral is small, it can be economically beneficial to mine. Our rivers like Karnali, Chamelia, Seti, Bheri, Budhi Gandaki, Marsayangdi and Kali Gandaki have gold in their sands. Local fishermen search for gold ore in these rivers and sell it in the market. Such ores have 60 to 99 per cent of gold. Precious metals and precious stones like ruby, sapphire, tourmaline, aquamarine are highly priced. Therefore, though they may be in small quantity, their value is high and it is economical to mine them. Metals like gold, iron, copper and zinc have their own value. They are found in Nepal and have a good market.&nbsp; But in the absence of proper mining, most of them are wasted. The local people have a tendency to blast the mine. By doing so, some quantity is extracted, but the big pieces of the stones get destroyed in this process. They are doing so because they don’t know the proper method of mining. If they hire an engineer to help them mine it properly, it can give them better results. We have mines from small to medium size. We don’t have mines as big as the ones in Australia, China and Canada. In non-metallic segment, we have big limestone deposits.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of possibilities you see for the contribution of mines and minerals sector to the economy?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">At present, the contribution of mines and minerals to the country’s GDP is estimated at around 0.4 per cent. This goes up to 2.4 percent if we consider mineral-based industries as well. If we utilise our resources properly, we can increase this to 15 per cent within a decade. This is only by utilising the identified mineral locations. If new ones can be found, the benefit will surely go up.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What do you suggest to address the environmental issues that crop up with mineral exploration? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">That reminds of Godavari Marbles. The company was doing well.&nbsp; It had market in Bangladesh and India. But the locals and environmental activists did not allow the mine to function properly. You cannot take out the minerals without digging up which may damage the environment. However, there are ways to minimise the damage. Moreover, though the environment is damaged when the digging is going on, the location can be rehabilitated and the damage replenished once the digging is completed. The mine can be rehabilitated by tree plantation, herbs farming, horticulture or building a resort. In some cases, it is possible to do the entire exploration as well as processing under the ground so that the noise and dust pollution can be minimised. Or the digging can be under the ground and the raw mineral can be transported through tunnels to a far-away location for processing. However, it is not possible to avoid some environmental damage as the opening to the mine is naturally over the ground.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the commercial viability of petroleum mine and, metallic and non metallic mines? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The geological structure and study reports suggest the possibility for petroleum at different locations of Nepal. Oil migrates from one place to another if it can’t get tapped properly.&nbsp; On the basis of studies by the Government and foreign companies, Nepal’s Terai including Churia region is divided into 10 different blocks for petroleum exploration. Shell Netherlands drilled about 3.5 kilometres on the block No. 10 a few years ago and found it dry. Then the company left Nepal. Now Cairns Energy, a British company and Texana Resources, an American company are doing preliminary works like reassessing, evaluating the existing data, and analysing samples but they are not doing it in full scale. Seismic survey has to be done. Then blasting may be required in some places. And wires have to be laid extensively. But it is not possible to do all these at the current political situation of the country. So they are idle. The government has already received back what it has spent on these studies. The government has charged these companies around Rs 200 to 220 million. Among the 10 blocks, five blocks are taken by Cairns Energy and two by Texana. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Oil is being extracted in Assam in India and Potwar of Pakistan since 1970s. As Nepal lies in the same geographical belt, there must be petroleum in our country too. But we have not found it yet. So we can’t guarantee the presence of petroleum yet. In Dailekh we can see the petroleum seepage. Similarly, in Trans-Himalayan region too, we find traces of gas. That shows the possibility of petroleum gas.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which minerals should get priority in exploration and excavation in Nepal in your opinion? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Among the precious metals, gold has to be prioritised and on base metals, copper, nickel and cobalt must be given attention. On non-metals, limestone, magnetite, dolomite, phosphorite and talc have to be given top priority. As these minerals have good prospects to be found and there is international market as well in these, we should explore them also in new places. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The government should increase its budget in mining sector. In the last fiscal year, Rs 20 million was collected by the Department of Mines through licensing. But the projects under it get only around Rs 3 to 3.5 million as their budget which is too little.</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">There is a controversy going on in the mining of sand and stones. As a mining engineer, what is your take on it?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Rivers bring down sediments from the hilly region and deposit them on the plain areas where the water current is weak. It is a continuing process. If such sediments are not dug out it brings problem. It lifts the river bed and increases the risk of flooding. But extraction of such sediments must be sustainable and balanced. You should not take out more than what the river has brought down from the hills. The problem at present is that in some places these sediments are extracted extensively while at some places nothing is taken out. At some places, walls are built to save settlements from flooding but sands and stones are extracted even from the foundation of such walls. That is haphazard mining. There must be a mining engineer and a geologist in every Village Development Committee and District Development Committee so as to properly mobilise the resources.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the minerals in which the private sector has shown some interest recently? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Recent report of the Department shows there are 80 licensed mining companies. Some of them are in operation. Most of them are on limestone, coal, red clay, slate, magnesite and on semiprecious stones like kainite, tourmaline, marble and quartz.&nbsp; The licenses already issued cover 12 minerals.&nbsp; And the trend is growing.&nbsp;</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the biggest challenges and problems in utilising the hidden treasure called mineral resources of Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Minerals are mined, so they are also called hidden treasure. However some minerals are found on the surface as well, e.g. the boulders. The biggest problem is that the Mines and Minerals Act, Forestry Act and Local Self-governance Act have contradictory provisions.&nbsp; Forest authority imposes tax on everything in the forest while mining authority says the mines, even within the forests, are under the mining authority. On the other hand, the District Development Committee and Village Development Committee come up and say they have the right over the mine area within their locality. So, the miner ends up paying taxes to all these different authorities. The solution is to adopt one-window policy for tax collection. Three ministries should coordinate and make mining easy. Investors will pay tax when they generate income. Before that they generate employment.&nbsp; So they must be encouraged. If 10 cement factories produce 1000 tons of cement daily, they jointly create employment for 10 thousand people directly and another 20 thousand indirectly. That will have multiplier effect.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of market prospects do you see if the minerals can be extracted? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The magnesite bricks will not be consumed in our country; not even five per cent.&nbsp; We have to search for international market. Surface transport costs much, so we cannot compete with other producers of magnesite.&nbsp; Therefore, we have to export it even though we have to provide special subsidy in its transport cost. Priority should be given to the minerals that can be used within the country, so that the import can be reduced and the trade deficit can be reduced.&nbsp; We can make good money if we export sand and stones to India and Bangladesh on time. Iron ore can be used within the country by the cement factories and iron mills.&nbsp; Other metals and precious stones have market everywhere in the world.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which five minerals would you like to specify as having the maximum commercial potentials?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Limestone is the most prominent. Then it is talc. Similarly important is magnesite as its mine operation is not difficult. If plants can be made and products taken to market, it has huge prospects. Only problem is of the fuel. A lot of coal is required. Kathmandu has natural methane gas reserve of 320 million cubic metres. It must be brought to the market. Precious and semiprecious stones, high priced metals and base metals must be highly prioritised.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">It seems that the mineral sector studies are very few and difficult to find. Why is it so? </span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">There are a number of research activities carried out, but not on the desired speed and scale. The problem is that the study reports are not made available to the public in a manner that makes them easily accessible to all those interested on it, by paying reasonable fee. This is essential to attract investors. About 60-65 minerals are said to be found in Nepal. Economic viability of such minerals has been changing over the time. For example, once gold was available in Kathmandu for Rs 9 to 10 thousand per 10 grams. That time, the Nepali gold mines were naturally uneconomic. Now that the gold price has increased to Rs 30-40,000 per 10 grams, the same mines may be economical. An authority should be designated to make the decisions regarding which mine should be brought into operation and which to keep on hold.</span><br />
	</span></p>',
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			'description' => 'We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a',
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		'Article' => array(
			'id' => '232',
			'article_category_id' => '40',
			'title' => 'Mining The Prospects',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><i><span aldine401="" bt="" serif="" style="line-height: 120%;">By M Rijal &amp; Gaurav Aryal&nbsp; </span></i><br />
	</span></strong></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 2.85pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">T</span><span aldine401="" bt="" color:="" serif="" style="">he present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next 10 years. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“We are talking about the previously identified mineral resources only,” says Krishna Prasad Kafle, a geologist and mines expert. “Once new mineral resources like petroleum are discovered, the contribution to GDP will far exceed even the present forecast of 15 per cent.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The future might look bright; the present situation, however, is still bleak. The fact is that Nepal is a net importer of gold, silver, copper, lead, zinc, iron and steel, aluminum, gypsum, salt, petroleum and high grade coal, among other minerals and mine-based products. “We can change the situation,” adds Kafle. “Nepal has tremendous mining prospects – let’s not doubt this fact. The geology of Nepal itself is the evidence to it.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Petroleum Prospects </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Sporadic oil exploration works in Nepal were first recorded in the 1930s. However, the first drilling was done only in 1989 in Radhanagar, near the eastern city of Biratnagar. The place is now Ward No 9 of Bahune VDC in Morang district <i>(see picture)</i>. Netherland’s Shell Company was involved in the drilling. The company drilled some 3520 metres beneath, but the “well” was found dry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">“Only if the company had gone little bit deeper, there was a chance to discover the hydrocarbon (petroleum) deposits,” claims a geologist on condition of anonymity. “As fate would have it, India had imposed economic blockade on Nepal at the same time. Drilling machineries had to be imported from India. The total daily operating cost of drilling sky-rocketed to as high as Rs 30 to 35 thousand (not adjusted with inflation). The company ultimately abandoned its plan of going deeper.”&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The Petroleum Exploration Promotion Project was set up within the Department of Mines and Geology. It gave momentum to exploration. So far, the Project has performed Airborne Magnetic Survey in 48 thousand sq km, photo-geological study in 60 thousand sq km, Reflection Seismic Survey in some 5 thousand line km, Gravity Survey in the entire Terai region, and Source and Seal Study in entire Nepal. Most significantly, the Department identified 10 <i>probable petroleum deposits</i> blocks in 1985. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“Nepal’s whole Terai and Churia range are the most potential petroleum blocks in Nepal,” says Shyam Bahadur KC, the Acting Project Chief. “This is the region constituting all 10 blocks identified for oil exploration.” Each block is of some 5 thousand sq km in area and is named from the west to the east <i>(see Table 1)</i>. The Nepalgunj and Chitwan Blocks (3 and 5, respectively) were leased to Texana Resources, Huston, USA in 1998. But the company postponed exploration works in 2000 citing security reasons. The company is said to have almost completed preparing various maps but has not revealed further as to what would be next. Five Blocks - 1, 2, 4, 6 and 7, respectively, were awarded to UK-based Cairns Energy in 2004. The company postponed works for four years and resumed in December 2009. The company is involved in developing the complete maps first. As for the remaining three Blocks - 8, 9 and 10, the government is preparing to award contracts through a bidding process most probably in the next fiscal year (2011/12). <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for the reasons for so many researches-planned focusing on the Terai and adjoining Churia range, the geologists have firm belief that Nepal’s Terai is similar in geography to the sub-Himalayan plains of Pakistan and India where hydrocarbon deposits were discovered and are extracted on commercial scale. The Potwar Basin of Pakistan and Digboy of Assam in India are mining hubs in the sub-Himalayan region. “From among the 10 Blocks, if we discover even a single medium size oil well, it can transform the economy of Nepal beyond anybody’s imagination,” KC asserts in an optimistic tone.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">The evidence of Nepal’s hydrocarbon deposits can be seen as the gas and oil seepages in various parts of Dailekh district in mid-west Nepal. For instance, the oil seeps at Padukasthan represent “biodegraded” light oil with geological source, whereas the gas seeps at Navisthan and Sristhan are of “thermogenic” origin, according to geologists. Further, the proportion of higher “homologs (C2-C5)” in the seepages of Dailekh district suggests gases associated with oil. The threat, however, in terms of capitalizing the potential hidden oil wells is that “hydrocarbon deposits are mobile by nature”. If not tapped in time, the whole petroleum reserves may move from one place to another even crossing the man-made boundary of any country – this is what most of the geologists fear in Nepal. </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Cement: On the Way to Abundance </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Among all non-metallic minerals, excavation of limestone – the basic element to produce cement, has increased substantially in the recent years. Limestone is in abundance in the country and predictions are that Nepal has a chance to be fully self-dependant on cement by the next seven months (August 2011). Some six new industries are coming to the fore, in addition to the existing 30 cement industries. “We can now be hopeful that the domestic industries may fully sustain the demand for cement,” says Dhruba Thapa, Vice President, Nepal Cement Industries’ Association. The industries, however, still have to import clinker, which is produced from limestone and used for cement production, from India. As of today, some 30 companies have received limestone mining permission from the Department of Mines and Geology, whereas 167 companies have received the limestone prospecting (exploration) license from the Department. And more than 60 companies have received the license to operate a cement industry from the Department of Industry. In Nepal, the volume of limestone deposits (of cement grade) is believed to be over 1.25 billion metric tons, according to the Department sources.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for other non-metallic mineral resources except cement, there are possibilities for unearthing dolomite, phosphorite, magnesite, talc, mica, ceramic clay / red clay, silica sand, salt, barites, calcite deposit and diatomite, etc, from various parts of the country. There are also possibilities for mining precious and semi-precious gemstones such as tourmaline, beryl / aquamarine, garnets, kyanites, rubies / sapphire and quartz crystals. Decorative stones such as marble, granites, quartzites and slate can also be mined. Construction materials such as boulders, cobbles and pebbles are also in plenty while fuel mineral like coal too has commercial prospect. As for the operating mines, there are a few in the country. For instance, mining of marble is being done from Godavari (Lalitpur) and Anekot (Kavre); pebbles are mined from almost every riverside and low-hills and are even exported to India’s booming construction industry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Metallic Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">In Nepal, the iron ore prospects and deposits are reported in 85 locations and the copper in 107 locations, zinc and lead in 49 locations, cobalt at least in 4 locations and nickel in at least 5 locations. At present, a Chinese company is involved in the mining of iron in Thoshe, Ramechhap. As for gold, there is no mine in operation as of today, but it is frequently winnowed out from the gravel and sediments of around a dozen rivers like Mahakali, Bheri, Rapti, Kaligandaki and Sunkoshi. Primary gold occurrences have been reported from Lungri Khola area in Rolpa; Banga Bagar, Gorang and Jamari Gad in Baitadi; and Bamangau in Dadeldhura. These areas are, however, yet to be explored extensively. The Department of Mines and Geology thinks that once the mining licenses are issued, the mines will automatically get the status of “operating mines”. As the Department has no mechanism to cross-check the facts going to the field, there is a compulsion to assume that the license holder mines are really operating. Same is the case for gold and other minerals. Two licenses have been issued to mine gold and are taken as the operating mines in the Department’s list without further evidence. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">As for Uranium, which is radioactive and so, a highly valued mineral, is also reported to have some deposits in Nepal. The sites are Jagati in Bhaktapur and Shiva Puri area in Kathmandu; Tin Bhangaley, Chandi Khola and Chiruwa Khola in Makwanpur; Buka Khola in Sindhuli; Janmari Gad, Banga Bagar and Gorang in Baitadi; and some traces in Chameliya river in Darchula. “Among the potential uranium sites, Tin Bhangaley (Makwanpur) and Gorang (Baitadi) prospects appear attractive, but economic evaluation of these sites are yet to be performed,” says geologist Kafle.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Methane Gas and Other Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Kathmandu valley that incorporates three districts of Kathmandu, Lalitpur and Bhaktapur is rich in methane gas deposits. The Department of Mines and Geology explored this gas in 26 sq km area in the valley and it was proved that 316 million cubic metre of methane gas deposit is available for commercial purpose. But it still remains unexploited. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Nepal is also affluent in other miscellaneous mineral resources. For instance, there are some 23 geothermal hot springs in Nepal. They are found in the vicinities of rivers like Mahakali, Marshyangdi, Trishuli, Kodari and Surai Khola, among others. The temperature of the hot spring water remains generally in between 40°C to 115°C. The hot springs can be utilized for tourism purpose, as people enjoy taking a bath into it. It is also believed that the hot springs have the healing power in illnesses like backache and arthritis. Thermal electricity can also be produced from the hot springs with the help of technologies.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Challenges</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Nepal’s mineral resources themselves have become the curse, says geologist Kafle. “From mountain to Terai, minerals are scattered all over the country. But we have failed to cash in them. Otherwise, we would have made remarkable economic progresses,” adds he. “Mineral exploration, mine development and establishment of a mineral based industry normally require large investment, sound technical know-how and long gestation period. We lack these all.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">It’s a fact, in a money-crunch country like ours, Foreign Direct Investment is a must to explore and utilize petroleum and other mineral resources, says another geologist KC. “The government of Nepal is not able to sufficiently finance the research and exploration of the mines and minerals. Usually the government provides the Department with Rs 3 to 3.5 million annually. This amount is not enough for us,” adds he. “ On the other hand, it is a global practice that the government rather than doing the exploration works by itself, invites companies for the exploration and investment. Even the powerful countries like USA, Norway, Saudi Arabia, etc invite the companies for the investment.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Further, there are high risk, uncertainty and long return period involved in mineral exploration and mining. And if the private sector is to invest in it, the government must develop infrastructures like road, electricity and telecom in the mineral deposit sites. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Yet another biggest problem is that the three laws of Nepal - Mines and Minerals Act, Forestry Act and Local Self Governance Act contradict with each other.&nbsp; For instance, the forest authorities impose tax on everything inside a forest, while the mining authorities say it is different and come under the mining rules and regulations. And the local government bodies such as District Development Committees (DDCs), Village Development Committees (VDCs) and municipalities claim the same taxation rights over the same resources. It is imperative that, to clear ambiguities, the government must make one window policy of tax mobilization vis-à-vis mines and minerals. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Way Ahead</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Capable technicians at the Department of Mines and Geology are frequently leaving the country in absence of career prospects and there is no significant entry of new technical manpower at the Department. Such a situation may cause severe hindrance to mining activities in the country. Further, the haphazard pebble and gravel mining activities, such as those in Nallu, Lele and Chapagaun villages of southern Lalitpur may lead to environmental degradation. Development should always be healthy, balanced and eco-friendly. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">For public scrutiny, it is extremely difficult to extract information from the Department and to some extent, from the Department of Industry. Mines and mineral related information should not be stored but disseminated and exposed through publications and media campaign on a regular basis. Mining potentials must be publicised so as to lure the potential investors and create awareness among the policymakers. This very thing is lacking in Nepal. <br />
	</span></span></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="line-height: 115%;">At least for the moment, only if the petroleum exploration works in the 7 leased blocks could enter the phase of drilling; it could be a silver lining to all those who wish to see the works moving ahead on a fast track. </span><br />
	</span></p>',
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			'description' => 'The present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next',
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		'Article' => array(
			'id' => '112',
			'article_category_id' => '40',
			'title' => ''The Government Has Not Recognised Advertising As A Real Industry'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.</strong></div>
		</div>
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<p>
	<strong><br />
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				<strong>In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.</strong></div>
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<p>
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<div style="width: 595px;">
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			<strong>Being a key player in Nepal’s ad industry for almost two decades, what is your evaluation of its evolution? </strong><br />
			Our market has seen tremendous change and ended with a 360 degree turn of success. We only had the state-owned Gorkhapatra and The Rising Nepal in the print media and Nepal Television and Radio Nepal in broadcast media to begin with. Most of the advertising two decades ago constituted government ads and notices. Over the years, Nepali advertising has taken a long leap because consumption patterns have changed and the market has changed, too, because of democracy and several other factors. Multinational companies (MNCs) were not there. FMCG (Fast Moving Consumer Goods) products were very few. Today, we have MNCs, new big companies and many FMCGs. All these changes have brought in new players in the market. The advertising situation has been changing every five years. Today, we are almost on a par with advertising industry in the neighbouring countries. But our online advertising has not grown as expected.<br />
			 </div>
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			<strong>There seems to be unhealthy competition among the major players on holding onto the clients. How can this be controlled?</strong><br />
			Unhealthy competition does exist, but it is not as it was a decade ago. The clients have become more professional and demanding. Leading advertising agencies are under pressure to produce quality ads ever since the clients have started demanding effective campaigns. If you can deliver good work and service to the client, the client is bound to stay on. The smaller advertising agencies, however, continue to compete with each other by offering lower tariff and increased percentage sharing to the clients. I am sure this scenario will change with time once they come to terms with the professional demands of the market. Media exposure has led to clients demanding more professional service as they now know what’s happening in other countries. Compared to a decade ago, there are more advertising agencies producing quality work which has helped bring down unhealthy competition.<br />
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			<strong>Now the ad market of Nepal stands at around Rs 3.5 billion. Are the ad agencies having a good time? </strong><br />
			Yes, it is a good time for the ad agencies which are serious and professional. They are prospering and they will be prospering.<br />
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			<strong>Prisma has top profi le clients like Bottler’s Nepal, Samsung, Western Union, Ncell and Bajaj, to name a few. How tough is the competition among the agencies? </strong><br />
			The competition among the top notch agencies is very healthy and professional. We have a good portfolio of clients but in today’s age of competition, we have to be better than others and perform well to get an edge. So, the competition among the top notch advertising agencies is more in terms of quality and creative work.</div>
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			<strong>The number of advertisers has grown but the number of ads and the market value have grown more. What is contributing to this growth? </strong><br />
			Several factors have contributed to this growth. For one, our urban population is growing consistently and so is the demand for products and brands. MNCs like Unilever and Dabur are pumping in more investments. Another reason for this growth is the change in our consumption habits. Almost 60 per cent of our population is below 32 years of age. This population is literate and possesses decision making capacity which enables them to dictate the market, which in turn, demands the products to be competitive and good. This is where the advertising agencies come in the picture. The entry of new players into the market fuels increased advertising spending from the existing competitors. An example is, when today’s Ncell came in as Mero Mobile, Nepal Telecom was forced to turn aggressive. During its old days of monopoly, it never felt the need for advertising as it does today. Similarly, there are certain sectors that have grown tremendously in recent times. Today, the largest spender in advertising is the education sector. Real Estate sector is another major contributor to Nepal’s advertising industry.<br />
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			<strong>Is the lack of creative talent the only reason our advertisements are not at par with foreign advertisements? </strong><br />
			I, for one, do not agree with this. When you look at any other country’s advertisements, for example India, there is sectoral advertising. Each advertisement there targets a special section of the society. Nepal is a market with all sorts of consumers mixed up. I cannot make a very creative ad for a mobile phone company like Ncell as it should cater also to the consumers living in remote Nepal where literacy level is very low. I do not expect such audience to comprehend the message that I will be conveying through a highly creative ad. For example, I cannot compare the comprehension levels of the youth in Kathmandu and Solukhumbu. It’s a major reason why Nepali ads are created in the simplest manner possible. What use is creativity if it cannot sell a product? It would be unfair to judge the creative talents of Nepali advertising professionals given the constraints that they have to face. It would be equally unfair to compare us with international advertising which caters to people with high literacy levels and different mindsets from ours. You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural<br />
			Nepali audience, too.</div>
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			<strong>Aren’t the agencies pressurising the government to introduce a regulatory framework? </strong><br />
			We have been pressurising the government for a long time. Despite us being an Rs 3.5 billion industry today, the government has not recognised us and given us due treatment. During election time, politicians seek our assistance to create campaigns which means they do know the importance of advertising even for electoral purposes. However, once the government is formed, they forget that advertising should be treated like an industry.<br />
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			<strong>Today’s youth look at careers other than advertising. How does that impact the ad industry? </strong><br />
			One of the biggest challenges for our ad industry is the lack of quality human resource. We have not been able to create enough interest among the youth. They would rather aspire for a banking career, for example, which is secure as well as a rewarding career. Advertising is merely a small topic for them while in college and not part of their core curriculum as such. It’s ignorance that’s keeping them from a career in advertising. They probably don’t realise that advertising, too, can be a lifelong and rewarding career. Once they realise this, the problem of quality human resource will have found a solution.</div>
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			<strong>Almost all MNC ads are dubbed from foreign languages, mostly from Hindi. Can’t we come out with our own ads for these products? </strong><br />
			One reason for dubbed ads is the trickle-down effect of international media in Nepal. For example, multinationals like Unilever want to create synergy among the communication they are doing in this region as most people have already seen the same advertisements on Indian TV channels. Nepal and India have similar culture and consumption patterns. In India, too, they use the same ad in different languages in different states. This way, the advertiser saves the production cost of new advertisements and invests only in releasing them over a number of channels in different languages. Another reason is the celebrity endorsement. Indian celebrities are equally popular in Nepal. A possible solution could be ‘clean feed’ which will block the advertisements on foreign channels aired to Nepal, thus forcing the advertisers to create advertisements in Nepali. However, there is no such policy at this point of time.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Our ad market is only of Rs 3.5 billion. Isn’t it quite small in size when you consider that a single company allocates more than this for advertisements in other countries? </strong><br />
			You have to understand that our market size is rather small. You cannot compare the advertising budget of Indian corporates with that of ours. A company’s turnover usually determines the amount it wants to allocate for advertising spending. Another thing that we need to look into is the potential of the market in terms of growth which also induces the budget of the industry. Thirdly, the government policy doesn’t provide for tax exemption on advertising spending after a certain limit after which the money spent on advertising is not considered as an expense. This discourages advertisers from making sustained investment in advertising. In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.<br />
			 </div>
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		<div align="justify">
			<strong>The reported annual growth of 12 to 15 per cent of the ad industry is said to be mainly because of media infl ation. Do you agree?</strong><br />
			Inflation is created by the media but there is always a debate in the advertising sector for several reasons. You see electronic media suffering a lot during load shedding. On the other hand, there are advertising categories which have been shrinking because the whole industry has shrunk. Lately, noodles industries’ advertising spending has gone down heavily. But we are still growing. New breed of advertisers such as the real estate, education sector, and lately, DTH have come up. We are growing not just because of media inflation; there is a genuine growth, too. We expect to grow at 20 to 25 per cent looking at the pace of media growth but it is not happening because of the political situation and power cuts.</div>
	</div>
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		<div align="justify">
			<strong>What is the market share of Prisma?</strong><br />
			We are proud to be in the market for 20 years. There are good clients attached with us for more than a decade. Our clients have succeeded in becoming market leaders over the years. We consider good work, recognition and revenue as the most important. It’s important to enjoy a good profit even if the turnover is less. I cannot quote a market share for you but we are holding a good position in the market.<br />
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			<strong>Which Nepali ad do you think is the best, either by your agency or some other agency and why? </strong><br />
			The biggest and the best campaign that ever happened is the Ncell rebranding from Mero Mobile that we did. The campaign was very successful and we are very proud to have done this campaign. Also, it was the only rebranding ever happened in Nepal.</div>
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.',
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		'Article' => array(
			'id' => '111',
			'article_category_id' => '40',
			'title' => ''An Advertisement Must Sell The Product'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.</strong></div>
		</div>
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</div>
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>We defi nitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal.</strong></div>
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</div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you evaluate the Nepali ad industry? </strong><br />
			The industry has grown a lot in the last decade and it is still growing. It’s a Rs 3.5 billion industry now. But there’s still the lack of trained, educated professionals in this field. It makes a huge difference in the output, especially in a creative field. The new generation, it seems, is more comfortable to work in the banks, the way the old generation preferred government jobs to private ones. In advertising, as is the case with any other creative sector, people who don’t want a nine-to-five job are more interested. And those who want to explore their talent join this industry.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<strong>There is no categorisation of ad agencies. Every agency has the same basic tag of ‘Advertising Agency’. Is that alright? </strong><br />
			It is high time that we differentiate. When we help sell the products of the clients, we position them. Every product has its own positioning. Similarly ad agencies must be differentiated or, let’s say, positioned. We in Water Communication would like to call ourselves a strategy and design company. Others see us as a creative agency. I think creativity is essential but strategy must be stronger.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>A common criticism against the Nepali ads is that they lack creativity. Ad agency people say that highly creative ads tend to go a bit over the top and that the general public fails to catch them. Can’t we create ads that are simple, yet highly creative?</strong><br />
			Creativity must be saleable. If you can’t sell creativity, I don’t call it creative. The main purpose of advertising is to promote the sales of products. Creativity must be promoting the sales. We don’t make ads for the sake of creativity. In the case of Nepal, the boundary for creativity in advertising is limited. I have to sell the products of my clients anyhow. Clients have different needs. And we need to be flexible.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Many ads are made in such a way that the focus is more on something other than the product or its value. Such ads, rather than promoting the products, end up confusing the consumers. What is the main reason behind it? </strong><br />
			The person or agency responsible for making the promotion strategy must be aware what they want to sell. If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Mobile phones and the Internet are growing as big media. How is your agency trying to cash in on this opportunity?</strong> <br />
			The new media is coming up rapidly and has a huge scope. In Nepal, the mobile phone has a greater scope than the Internet as there are more mobile users. Around 30 per cent Nepalis have access to mobile phones. Despite knowing about this opportunity, many ad agencies are unable to tap it. Mobile phone is a medium which provides a direct contact with the customers. But we don’t have an up-to-date database for that. Marketing through mobiles is a recent phenomenon in Nepal. We are far behind countries like India, China or even Bangladesh. Our customers are semiliterate. Still print is the best media for us for the time being. The television has definitely gained in popularity lately. So, it will certainly take some time before advertising could be done through the new media.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>As you said, the industry has a big problem of skilled human resource. How are you managing this crunch? </strong><br />
			We definitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal. So, there are very few trained professionals in the creative department. In the marketing department, we manage with the products of private colleges.<br />
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			<strong>Celebrity endorsement is not used much in the Nepali ads, while we see that quite a lot in foreign ads. Why are our ad makers not interested in using the celebrities to make ads? </strong><br />
			A celebrity is already a brand. But the celebrity-brand is perhaps yet to find a wider acceptance in Nepal. A product is also a brand. Rajesh Hamal is definitely a brand. It’s the media that creates a celebrity who then naturally becomes a brand. But sadly, the Nepali media has not gone beyond Rajesh Hamal and a few other names. Stars are not made by advertising agencies but by the media. We have limited celebrities and almost all the advertisers are using them to endorse their brands.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>In creating an advertisement, who plays the important role - the advertiser or the ad agency?</strong><br />
			Both play very important roles. And both have a common purpose – to reach the consumers. Clients give their needs and requirements and agencies help them with the means to reach the consumers. At the end, that must sell the product. Some might say that advertisers influence the creation of ads while others might argue that such an influence is possible because the ad agencies are not competitive.<br />
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		<div align="justify">
			<strong>What are the problems and challenges you are facing in this industry? </strong><br />
			The major problem we are facing is the lack of human resource. Another problem is the industry’s growth is not healthy and professional. There is unhealthy competition going on. There are many people who talk more and work less. There is no design policy. Such a policy would not only help to promote the products but also determine the country’s image. When we talk about Nepal tourism year, Nepal is not to be promoted only by the Nepal Tourism Board. Nepal has to be sold as a product. I don’t know if anybody has even thought about this policy.</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What future do you see for the advertising industry? </strong><br />
			It’s going to be more competitive. It will be run by more professional people. Our market is very small compared to the Indian market. To survive here, agencies must have more professional people. Strategically, only strong agencies can come up with such human resource and compete. The small agencies that can’t compete won’t be able to survive in the market.<br />
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
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			'description' => 'If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.',
			'sortorder' => '59',
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	(int) 9 => array(
		'Article' => array(
			'id' => '110',
			'article_category_id' => '40',
			'title' => '‘The Number Of Women In Advertising Is Increasing’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.</strong></div>
		</div>
	</div>
</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you set apart your ad agency among several others in the market?</strong><br />
			Advertising agencies are basically the same. Our ultimate target is to produce an advertisement that satisfies the clients and stays in the minds of the consumers for long. But definitely, we are able to set ourselves apart because of our philosophy. This philosophy defines me and my team. I and my whole team believe that we work hard, talk straight and are damn good at what we do. This confidence in the profession has established our team in this industry.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>With the number of ad agencies increasing every year, how tough has the competition become?</strong><br />
			I am happy that gradually people are realizing that the advertisement industry is a field with lots of opportunities. I don’t see it as a competition. I don’t think I am competing with anyone. Rather, I compete with myself. I have set some goals for myself and I am constantly working to meet these goals. I take each day as a challenge. I want to do better than what I did yesterday.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the problems of the Nepali ad industry? </strong><br />
			A major problem is the lack of skilled human resource. First, our youths are unaware of the opportunities in advertising. They either want to work in banks or in the multinational companies. So we are not getting smart and creative Nepali people even if we pay salary and other benefits on a par with these institutions. Second, we don’t have schools or institutions where we can enhance our creativity. An advertising agency has to hire a freshman. It takes at least a year for that person to learn everything. But when he is ready, another agency takes away that person. Third, even though we hire the best person in our company, our clients do not have confidence in them. They insist on hiring a foreigner for creative concepts. Thus the money that we could have spent in our country goes outside. Mostly, this money goes to India.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There are many ads that use the female body just as a means to get public attention. How do you see this trend?</strong> <br />
			Different people have different perceptions of the same thing. In my case, I believe showing females in an advertisement is not bad but how they are shown makes the difference. We live in a country like Nepal where we follow certain norms and values. No advertisement should cross the social limits such that it becomes unacceptable to society at the end. Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.<br />
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			<strong>Do you implement your such ideas when you make ads? </strong><br />
			Being a woman, I think a lot before doing anything. I am very careful not to tarnish the image of females through my advertisement because with every woman I associate myself. Similarly, when I think logically as an ad maker, I know there are several things in the nature that can be depicted in an advertisement in the place of women to convey the message. If anything is shown unnecessarily, consumers</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How is the participation of women in this fi eld so far? </strong><br />
			As of now, there are many women working in this field. And I think their number is increasing. But there are very few women who are investing in this field or holding top positions. I have been able to establish myself because of my confidence. I never feel weak just because I am a woman. I think I can compete with men in every aspect. Every woman should feel this way.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Is it a fi eld suitable for women?</strong><br />
			I don’t want to categorise professions on the basis of gender. With confidence and creativity, everyone can do better in this profession. Women can compete with men in every profession. However, women still lag behind because of low self-esteem. Women should take a step forward and explore the opportunities in this sector. I strongly believe that an advertising professional can fit in any other sector because he/she gains a bit of many different experiences in this field -- marketing, designing, writing etc. This field has so much to offer to creative people.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What should be done to attract more women to this creative fi eld?<br />
			</strong>People become successful when they work in the field of their interest. If someone has an inner desire to be a part of the advertising industry, I would welcome them. However, they have to be able to face the challenges. I urge women not to feel weak or discouraged because this is a field where creativity counts, not the physical strength.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Who are your top clients? </strong><br />
			Chaudhary Group, Triveni Group, Sujal Foods, MariGold Foods, Khajurico Nepal are our top clients. There are several others, too. And we have some snacks and confectionaries in the list.<br />
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			<strong>Which Nepali ad do you consider the best, made either by your agency or other agencies? </strong><br />
			I consider the advertisement of U-n-Me tea to be the best advertisement of our team. I love this advertisement because it is very tender. It has a quality to touch the hearts of the consumers and remain in their minds for a long time. Among the ads made by other companies, I think the advertisement of Wai Wai Gyan Uday is the best for the beautiful amalgamation of caste and creeds of Nepal.</div>
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.',
			'sortorder' => '58',
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		'Article' => array(
			'id' => '109',
			'article_category_id' => '40',
			'title' => ''Advertising Is Growing At Breakneck Speed'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.</strong></div>
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<div style="width: 595px;">
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				<strong>The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them.</strong></div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>v-chitra won awards under fi ve categories, including the “Best Creative Agency” Award, in the latest Crity Awards. What puts this company on the top?</strong><br />
			Our motto is: Everyday is a new beginning. So for us at v-chitra, winning an award is a thing of the past. But awards do put more pressure on us, as our clients expect more from us. At v-chitra, we believe that everyday customers have new choices. Everyday our clients have to renew their relationship with their customers so as to remain the first choice. So, we strive to make that happen, everyday.</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<strong>Which do you think is the best advertisement campaign and why?</strong><br />
			My next campaign will be my best one. Every campaign I develop becomes a part of my learning curve. It helps me experiment with new ideas and presentation styles. So, after making a campaign, I analyse it in detail to see if it could have been better. I make sure that I implement what I find in my analysis in my next campaign.<br />
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			<strong>What is the market share of v-chitra? Who are its major clients? </strong><br />
			It is very difficult to calculate our market share in percentage. But what I can tell you is we are one of the fastest growing agencies. Our Major Clients now are the Chaudhary Group – Wai Wai and Rio; Syakar Group – Honda two- and fourwheelers, Honda generators and Philips; Pashupati Paints; Teletalk – Colors Mobiles, Yeti Travels, Rosebud School, and Balterio floorings, among many others.</div>
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			<strong>Different sources have different estimates about the size of Nepal’s advertising industry. What is your estimate about the size of the ad industry? </strong><br />
			Genuine figures about the size of the advertisement industry are not available. These days, different sources are making different estimates. But we cannot comment on any of the estimates or verify any of them.<br />
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			<strong>How do you see the evolution of the advertising industry in Nepal? </strong><br />
			It is growing at break-neck speed. Nothing can stop it. But there are some constraints. The biggest constraint is the shortage of professional human resource. As far as infrastructure is concerned, there is a great chasm between man and machine. The industry has invested in physical infrastructure but not in the professionalisation of human resource. Currently, a majority of talented youth is going overseas to study. The industry has failed to develop interest in the young talents towards advertising. At the recent Crity Awards, I was happy to see a category for the “Best Creative Youth.”But that’s not enough. We have to make an advertising career just as lucrative as a banking career.</div>
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			<strong>Most of the advertising agencies play the role of a mediator between the advertisers and the media. Is that all an Ad agency is supposed to do? </strong><br />
			The most important function in advertising is to create. Creating new concepts and ideas, to effectively sell the products and services is the primary objective of any agency. Everything else in an agency is support service. At v-chitra, we concentrate on providing creative solutions that are based on sound marketing strategies. Without a sound strategy, all creative concepts will fail.<br />
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			<strong>With the demand for advertisements growing, there seems to be a mushrooming of ad agencies. What makes v-chitra stand out? </strong><br />
			We try to create effective communication platforms for the products and services we represent. Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<strong>There seems to be unhealthy competition among the major players of the advertising industry in terms of retaining the clients. What do you have to say about this? </strong><br />
			The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them. But the clients need to understand that they are causing a long-term, irreparable damage to their brands by associating themselves with such agencies.</div>
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			<strong>In Europe and America, online advertising has come up really strong over the past few years. Why do the ad agencies in Nepal continue to ignore online advertising? </strong><br />
			Online advertising will increase only when the base of computer and Internet users is wide enough. Clients like to spend on the kind of media that has a wide readership, audience or viewers. Having said that, I think online advertising, too, is picking up in Nepal. The growth is slow, but it’s definitely picking up.<br />
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			<strong>What is the situation of the availability of professional human resource in advertising?</strong><br />
			The youth have to be shown the rewards, financial or otherwise, for them to enter this industry. An agency can offer such rewards, only if it is itself rewarded. As of now, the clients expect many of our services free of cost; they think that 15 per cent media commission is enough. Even that is shared and stretched to the limits by corporate houses that see only their profit. But they need to understand that squeezing an agency beyond the limits affects them and their brands directly because it also affects, directly, the quality of service and creativity.</div>
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			<strong>What are the challenges and problems of the advertising industry?</strong> <br />
			The lack of professional human resource is the biggest challenge. The industry needs more smart, young and energetic professionals. Alongside, we should generate new talents who will enhance the quality and scope of advertising in Nepal.<br />
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			<strong>What do you expect from the government for this industry?<br />
			</strong> Advertising is self sustaining. It is purely an economic activity that survives on entrepreneurial initiatives. Businesses today have realised the importance of advertising. All that I expect from the government is to create an ideal business environment for the industries and services to flourish. Then the advertising industry will automatically sustain itself.</div>
	</div>
</div>
<div style="width: 595px;">
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-26',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.',
			'sortorder' => '57',
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	(int) 11 => array(
		'Article' => array(
			'id' => '108',
			'article_category_id' => '40',
			'title' => '‘The Advertisers Need To Realise That A Single Slogan Can Work Wonders For Them.’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you view the Nepali advertising industry in the present context?</strong><br />
			The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you look at the current size of Nepal’s advertising industry which is said to be around Rs 3.5 billion?</strong><br />
			I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.<br />
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</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What has prompted the growth in the industry’s market value? </strong><br />
			This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What rate is the Nepali advertising industry growing at, on an annual basis? </strong><br />
			Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry. <br />
			<br />
			<strong>What is the advertising spending of MNCs here vis-à-vis the domestic companies? </strong><br />
			The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Could you take us through your journey of 20 years with the advertising industry?</strong><br />
			In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What are the problems and challenges that the industry faces today? </strong><br />
			We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.<br />
			 </div>
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Even though Nepali advertisements have come a long way, we are still not in the same league when compared to global advertisements. Why so? </strong><br />
			I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Does the industry follow a particular line on ethical issues? </strong><br />
			Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the accounts you are currently working with? </strong><br />
			We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&amp;G and UTL etc.<br />
			<br />
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			 </div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which advertisement campaign are you particularly proud of, during your entire career? </strong><br />
			It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.</div>
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	 </div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2010-12-24',
			'keywords' => '',
			'description' => 'I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.',
			'sortorder' => '56',
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	(int) 12 => array(
		'Article' => array(
			'id' => '107',
			'article_category_id' => '40',
			'title' => '‘We Need An Advertisement Censor Board’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 583px; text-align: center;">
	<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/crity-award.jpg" style="margin: 0pt; padding: 0pt;" /></div>
<p>
	 </p>
<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why was AAN formed and what are its activities? </strong><br />
			AAN (Advertising Association of Nepal) was formed as the umbrella association of the advertising industry. It was set up for the protection of the rights and welfare of the industry, and to formulate the policies. It plays a vital role as a bridge between the advertisers and the media enterprises.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Being an old hand in Nepal’s advertising industry, what is your take on its evolution?</strong><br />
			The advertising industry has now transformed from being a small business sector to a full-fledged industry. Having grown consistently over the years, it has gradually asserted its role in the corporate world. It’s unimaginable today that a product/brand can establish itself in the market without the help of advertising campaigns.</div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The advertising market of Nepal stands at about Rs 3.5 billion. Is the growth in tandem with the expansion in other sectors? </strong><br />
			This augurs well for the advertising agencies, for sure. In fact, the industry value should have been around Rs 4.5 billion owing to the inflation. However, political instability has inhibited its progress to a great extent. Looking at the positive changes, even the rice brands have started advertising which never happened before. Even though the advertising market has been growing at the rate of 15 to 20 per cent annually, the time has not come for us to get particularly happy about it.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you view the unhealthy competition among the advertising agencies? </strong><br />
			It is no secret that there is unhealthy competition to get ad accounts. However, the Nepali media is the main reason behind this unhealthy competition. The number of media houses has been increasing at an alarming rate despite the market remaining comparatively small. The lack of uniformity in the market value, non-existent market planning and direct marketing, among others, are the key reasons for the unhealthy competition.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How can the unhealthy competition for holding the clients come to an end? </strong><br />
			There must be uniformity in the market rate. Next, it has become absolutely necessary that the ad agencies be categorised. Similarly, the media should be categorised, too. The government must issue licenses taking into consideration the respective categories. AAN has been working on this in association with various media groups. For example, we have worked with the Television Broadcasting Association to fix ad tariffs. Fixing a standard ad tariff will definitely create a favourable environment for the investors and help the market sustain.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Is the industry in dire need of a regulatory framework? </strong><br />
			To regulate the advertising market, an advertisement policy is mandatory, to start with. We have certain policies but they need to be updated with the changing time. The government must have a different advertising authority set-up to regulate the advertising agencies.<br />
			<strong><br />
			According to you, which Nepali ad is the best, in recent memory? </strong><br />
			Personally, I like Jagdamba Steel’s “Nepali Mann Mann ma” which incidentally, was produced by Welcome Advertising. It was voted as the most popular ad. Quality wise, I think Pepsodent ad is the best one.</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In general, the youth is looking at several career options but not advertising. What could be the reasons behind this? </strong><br />
			There is no doubt that we have not been able to attract young talent. However, the youth is showing interest in being a part of the industry, off late. Colleges have included advertising as a subject in their syllabi and advertising training centres such as Infinity Advertising Training Institute, too, are being established. Therefore, we are looking at better times ahead and hope that more young people will look at advertising as a rewarding career. There is the lack of skilled manpower due to braindrain and also because the trained ones are enticed by the banks. If the advertising industry will be managed properly, most of the youngsters would be in this sector.<br />
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		<div align="justify">
			<strong>Why do our advertisements lack quality as well as creativity compared to the advertising standards abroad? </strong><br />
			My personal opinion is that Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity. The Nepali advertising agencies have been awarded with a number of international awards and certificates of merit since 2003. I will go as far as to say that our creative talents are second to none in South Asia. The annual Crity Awards have also encouraged the advertising agencies to produce better creative work. As the market gets more established with time, we should definitely be in a position to compete in the international market with a renewed vigour.</div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why were the recently held Crity Awards criticised and labelled as biased? </strong><br />
			Crity Awards is not confined to honouring advertising excellence. It is a celebration for the entire media industry. Any talk of branding the event as controversial is a baseless rumour. Recently, we organised a post-event programme for the ‘6th Crity Awards 2067’ where we had an interaction among the advertising agencies, media executives and journalists. We reached a conclusion that the awards ceremony did not have any reasons whatsoever to invite the wrath of the so-called critics.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>The corporate big-wigs are circumspect about investing in the advertising industry. How do you view this hesitation?</strong><br />
			Well, there is sufficient investment in the advertising industry and that is why it has transformed into an industry from a small business. The annual turnover of the industry is Rs 3.5 billion now. AAN has close to 140 ad agencies registered with it. Politically, once there is a peaceful environment in the country and we have a stable government in place, the investment will definitely increase. There is a good number of multinational as well as local brands looking forward to an investor friendly environment to start/resume investments. It is only a matter of time, hopefully.</div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Besides being an advertising administrator, you are also an entrepreneur in the industry. How are you doing on that account?</strong><br />
			Welcome Advertising is an independent agency, in operation for 21 years now. It is an authorised member of the International Network in Nepal as well as a production house. Welcome Advertising works with some of the biggest names in the market such as the Jagdamba Group, Unilever, G Phone, MS Group etc.<br />
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		<div align="justify">
			<strong>There has been an issue about exaggerating product features through advertisements. How do you plan to address this? </strong><br />
			The question you have asked is very relevant in the present context. These are the advertisements which are produced by the clients themselves that are courting controversies. For such problems, censorship of advertisements is the best solution that one can think of. Therefore we do need a censor board which will monitor and approve advertisements before they go to print or get aired. The government must take an initiative to this end by setting up a separate advertisement authority. Alternately, the government could give this responsibility to AAN.</div>
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	<div style="clear: both;">
		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.',
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	(int) 13 => array(
		'Article' => array(
			'id' => '106',
			'article_category_id' => '40',
			'title' => 'Body And Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Most of the scientific claims made by product advertisements are derived from correlation rather than causation.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Body and Mind</strong><br />
			Even a single cell organism such as a bacterium acts as if it has a mind. It moves away from toxins and towards nutrients. For bacteria, such behavioural response is the key to survival. Humans have minds, in addition to bodies, although both serve the same purpose -- a purpose shared by every species on earth, i.e. survival and well- being. Products and services, in essence, serve the purpose of mind/body by enhancing the survival (physical, psychological and social) and the quality of survival. No wonder advertising is more and more focused on the quality of life that products bring to consumers’ lives rather than their functional attributes.<br />
			The question of mind-body has intrigued many great philosophers and scientists. While the eastern civilization had long understood the connection between mind and body, it took a long time for the West to grasp this knowledge. An increasing body of scientific evidence suggests that mind (the immaterial) and body (the material) have a symbiotic relationship. What happens in the mind has outcomes on the body, and the body has a significant role in the shaping of the mind. But for many centuries, the West embraced the concept of disembodied mind (mind separate from the body; spirit separate from matter) and this had a profound impact on many disciplines including medicine, as exemplified in the way it treated diseases (by simply focusing on the body and not the mind). It would not be wrong to assume that this mind/ body problem had a great impact on the way marketers approached advertising. As a result, for a long time, marketers practiced a rationalist-materialistic approach in advertising (e.g. nice shampoo=nice hair=nice job).In the absence of proper understanding of bodily emotions and their influence on the mind, emotions were generally overlooked as an effective approach in advertising. <br />
			Emotions help us survive and survive better. If we did not have the emotion of fear, we would walk </div>
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			<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/car.jpg" style="margin: 0pt; padding: 0pt; width: 280px; height: 313px;" /><br />
			<br />
			freely in the middle of the highway, though not for very long.If we did not feel good or happy, we would not get into any kind of exploration; whether it was seeking a mate or having sex when we lived in the jungle or seeking scientific discoveries while we live in a civilized world. It is very difficult for an eternally sad and depressed person to engage in such explorations. Some argue that emotions are dysfunctional, but this is true only when an emotion or its intensity is inappropriate to the situation. <br />
			With the re-emergence of the integrated theory of mind/body, and the role of body (where emotions occur) and its making of the mind (where the emotions are felt and classified as painful or pleasurable etc.), emotions have received their due importance in management and, by extension, in advertising. It is worthwhile to note that beliefs are tied with emotions. And emotions can lead to new beliefs and strengthen existing beliefs. It is our emotional connect with the brands that strengthens our belief in them.Only recently has science agreed upon a broad definition of emotions and their purpose in our lives.</div>
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</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Mind and Brands</strong><br />
			Products exist in the outer world. Mind exists inside us. We engage our body to interact with objects (including products) and events in the outer world.<strong> </strong> However, it is our mind, in conjunction with our body, which gives meaning to those products.<br />
			In other words, mind and products come together to make a brand. Products, or for that matter, any external objects or events, do not have much intrinsic qualities of their own. Products are generally neither good, nor bad; neither black nor white; neither beautiful nor ugly. And when they are made under the statutory quality standards, they are neither superior nor inferior. It is our mind that gives (or doesn’t give) products such qualities. <br />
			This is where advertising comes in. Advertising helps the mind embrace the</div>
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		<div align="justify">
			intended qualities of products through association or conditioning. When those intended qualities, through a repetitive exposure of messages (provided they are delivered in the proper way, here delivery of the message is the key) become hardwired in the brain, they become a belief. Beauty care products don’t make us more beautiful as much as they make us feel more beautiful, and so do the designer clothes and many other products. Does one nutritional drink make kids smarter or taller than others or does it make any smarter at all? No one can say for sure. Most of the scientific claims made by product advertisements are derived from correlation rather than causation. But if the consumers strongly believe (with strong emotions) that it does, then no reasoning can change their mind.</div>
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			<strong>Brands and God</strong><br />
			Brands are much more than simply matter, much more than what they are made of. Belief is what lies underneath both God and brands; the only difference is the degree. And mind is the space where both God and brands are experienced. This is in no way meant to reduce God to mental states or to draw any parallel between God and brands, because God is much more powerful than any brand mankind has ever made.</div>
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		<div align="justify">
			Only God can create the kind of belief that He does. However, I believe that any brand that can create a godlike belief will be the truly ultimate brand. Whether it is ever possible to do so is another question altogether. But that should not stop brands from trying. This effort is what will drive brands to continually evolve forever. (Panday is a Creative Consultant and winner of six Crity Advertising Awards)<br />
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Most of the scientific claims made by product advertisements are derived from correlation rather than causation.',
			'sortorder' => '54',
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			'title' => 'God, Belief And Brands',
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	<strong>In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
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			Have you seen God? This is a question I have faced many times in life. As a theist, I find it difficult to answer this because I haven’t seen God. But not seeing God or rather not being able to see Him hasn’t changed my belief in Him. My inability to see God can be attributed to many reasons. Perhaps God hasn’t endowed me with senses (vision, in particular) strong enough to see Him. Perhaps God doesn’t exist in the form and shape that my senses are attuned to. Humans have the instinct to anthropomorphise objects. Everything has to be human like. We look for faces in the clouds and in cars. In marketing, we attribute human-like characteristics to products. But, God doesn’t necessarily have to be a carbon based organism governed by the laws of the cosmos.<br />
			As for science, it has a concrete theory neither about the origins of mankind and the universe, nor about the brain which builds such theories. So, for science to come to a conclusion about God would be a bit too premature. Science, especially narrow science, rejects what it doesn’t know and ignores what it doesn’t understand. For centuries, science chose to ignore the issue of emotions. And science continues to ignore the phenomenon of consciousness (i.e. awareness in the most basic sense ) because neither can it fully understand this phenomenon , nor can it explain how it works inside the brain. For the time being, let science be science and God be God. At the very core, both science and God function as one, because both seek the same purpose - survival and well-being of mankind.<br />
			For a layman like me, the questions such as the evidence of God’s existence and whether God created this universe and the species or they evolved are not worth pursuing. Even if the issue of Creation vs. Evolution is ultimately resolved, it will not be the end of God or Science. Both will continue playing significant roles in our lives as long as we continue being an existence made of mind and matter. So, instead of the big questions, what I prefer to be asked is whether I believe in God or not? To that, my answer will always be a resounding YES. I do believe that God does exist.<br />
			Belief, in itself, is nothing less than a miracle. Belief is healing, not only psychologically but also physically. Belief in God gives us the strength to follow a moral path. Belief is empowering. Belief is comforting. In times of crisis, belief in God has helped many, including me, maintain sanity in life.And my belief is not only limited to God; it extends to scientists and even brands, whose cause I champion. If I did not believe in scientists who said that Earth will not collide with other planets soon, at least not during my lifetime,<br />
			 </div>
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			<img alt="" height="454" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/pic-ss.jpg" style="margin: 0pt; padding: 0pt;" width="280" /> <br />
			&nbsp;then I would have ceased to exist long ago as a result of anxiety disorder. In fact, most of the scientific truths are simply beliefs for the vast majority of people.<br />
			For most of us, the existence of atoms, quarks or strings are beliefs and not scientific truths because by definition we ought to have observed them empirically in order to account them as scientific truths. But common sense dictates that it is best to leave science to scientists, even if they come up with a new theory every now and then.<br />
			Let me clarify that this discussion is neither about God nor about science, and it is certainly not against the non-believers. They are as much right in their (dis-) belief as I am in my belief. This article is mainly about belief because this is what makes a brand out of a product. In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.Medical science presents a classic example of the power of belief -- the placebo effect, where patients get better by ingesting a sugar pill, while they believe (falsely) that they are getting medicine. This is what some scientists call the belief effect. In one study, a psychology professor at the University of Connecticut found that ‘eighty percent of the effect of antidepressants, as measured in clinical trials, could be attributed to the placebo effect.’ This is the power of belief.</div>
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			'title' => '‘We Must Have Small Number Of States For Financial Feasibility’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Bijaya Nath Bhattarai.jpg" style="width: 153px; height: 173px;" vspace="2" />Bijaya Nath Bhattarai</b></div>
<div style="text-align: justify;">
	Former Governor, Nepal Rastra Bank</div>
<div style="text-align: justify;">
	The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the monetary aspect of federal Nepal?</strong></div>
<div style="text-align: justify;">
	Nepal Rastra Bank (NRB) is the authority for all monetary issues in Nepal. NRB has its branches and sub branches spread all over the country. It not only works as a fiscal agent but also facilitates commercial banks through operating currency chests. It regulates the money supply, flow of liquidity and supervises and regulates banks and financial institutions. In the federal structure too, the currency in use will be the same and there will be a solitary central bank which will be responsible for providing all central banking functions to every state in the country. There won’t be separate currencies for individual states. But all monetary issues should be controlled by a central regulator i.e. Nepal Rastra Bank.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>In a federal structure, the state revenue, expenditure and debts will have to be shared between central and local governments. How practically feasible will this be for Nepal?</strong></div>
<div style="text-align: justify;">
	As far as I know, the countries with federal structure have different forms of taxation. Some are levied by the central government while some others are at the states and municipal levels. There are three types of taxation. The municipal taxes would be the income of the particular municipality. Similarly, state taxes would be the revenue of the states. The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley. Then come the Terai hubs namely Bhairahawa, Biratnagar, Birgunj and Nepalgunj followed by towns like Pokhara and Hetauda. The economic activities in other areas are minimal. Therefore, resource mobilisation and sharing will be difficult proposition for federal Nepal. On the question of debt management, there needs to be an agreement on issuance of debt, use of debt and final repayment of debt. Most of the country’s debt issuance and repayment is at the central government level.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The rising recurrent cost is already eating up the country’s revenue generation capacity. With governments at the provincial levels, the overall administrative and recurrent public expenditure is likely to shoot up with no commensurate growth in revenue. Wouldn’t this be an alarming situation?</strong></div>
<div style="text-align: justify;">
	Resources remaining after fulfilling the recurrent expenditure are used in development activities. This is supplemented by the resources and means obtained from foreign aid and loans for development activities. The resources thus mobilised would be further divided in the federal system. Then there would be chances for even less resources and means left for development projects. The revenue grows along with the economic development of the country. If the country under federal system moves ahead and develops economically, the national income will grow. We can take Switzerland as an example where the per capita income is around US$ 34,000. But our country’s situation is such that federal structure can actually lead to resource crunch. The far western region, especially Karnali, is least developed. There are other under developed regions too where the conflict had escalated due to unequal distribution of income and resources. In such areas, the resources injected have to be comparatively higher. This would leave very little resources at the centre’s disposal. It would be ideal to have a small number of states and small state structures. Only then will we be able to mobilise resources effectively. At present, I see a faint possibility of introducing new forms of taxation for increasing resources. During the past decade or so, there have been very few new investments. Even now, the investment environment is gloomy for domestic as well as foreign investors. Foreign aid and internal resources mobilised by the state have not been effectively utilised. As a result, there is a liquidity crisis in the financial sector. The government has not been able to address budgetary issues well. There is fiscal imprudence which is reflected by large non-budgetary expense at the central level. It will be necessary to maintain strict fiscal discipline in a federal system. The non-budgetary expense has to be lowered to a minimum. If we can do that and utilise resources effectively for development, the situation may improve over the years as the economy will then grow. However, the current resource distribution pattern could invite complications.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>How can we decrease current expenses so that more resources can be allocated in development activities?</strong></div>
<div style="text-align: justify;">
	We have very limited resources. So, when we want to divide them among the centre and the states, there could be complications. While making a transition to the federal structure, we should make sure that the structure envisioned by the constitution is small and dynamic. For example, there are more than 600 representatives in our existing Constituent Assembly. This number is massive given the size of our country. Compare this figure with our neighbouring country India which has 552 members in its lower house of parliament. It is said that our federal parliament will follow a bicameral system, for greater representation of every region. The number of representatives should be brought down significantly from the present one to ensure low governance costs. Also the size of the provincial government must be small and effective. If this is not ensured, very little resources would be left for development activities after dividing them among central and regional governments.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>There has been no real debate on the economics of Nepal’s federal structure. Given this, how can we be definite about the direction we are heading?</strong></div>
<div style="text-align: justify;">
	I agree that there must be a serious debate on this issue. The statesmen and the CA too have not discussed fiscal federalism seriously. Major issues such as the availability of resources and means and the model of federal structure must be discussed now. I personally feel that without serious debates, going for federalism might backfire on the country in the long run. Nepal has limited resources. Therefore, the demarcation of states based on ethnicity could prove to be a dangerous proposition. It will definitely promote ethnic conflict among our own people. And we definitely don’t want Nepal to follow the example of Yugoslavia. The states must be divided based on economic reality.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What reforms do you think are required once we go federal?</strong></div>
<div style="text-align: justify;">
	Well, there are a lot of things that need to be reformed. Our GDP and tax ratio are lower compared to many countries. We can look at increasing tax compliance. In the recent past, media has reported tax evasion by big business houses. All citizens must feel that paying taxes is their duty and it should not be evaded. Greater tax generation will enable the state to mobilise adequate resources for development and social causes. Nepal has started providing social security allowances for elderly people. In the coming days, the state can offer free medicines and health services to the economically deprived people. For that, a sense of responsibility in people must develop to ensure tax compliance. If the government can take the role of a facilitator and focus its investment in infrastructure, Nepal can experience a prosperous economic development. The problems that we face today are that of infrastructure, labour relations and power. As per reports, around 200 small industries have closed shop owing to power shortage. Similarly, many industries have experienced decline in output due to labour unrest. The political parties must unite for national and development issues irrespective of their ideological differences.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Being one of the poorest countries in the world where there is little revenue left for development after incurring current expenditures, can we afford a federal form of government?</strong></div>
<p style="text-align: justify;">
	If we see economically, it is very difficult due to the resource constraints. As and when we enter the federal structure, it will be necessary to differentiate federal and state taxes. Let’s take the example of the USA where the sales taxes are collected by the states. Similarly, the municipal and income taxes are collected, respectively, by the municipalities and the federal government. Our main sources of revenue are VAT, customs duties and income tax. The land tax, rental tax and other smaller taxes are collected by the municipalities. I think the problem in Nepal arises due to centralisation. The rights must be decentralised. If small structure and decentralisation of rights can be ensured, there is no need to create new states in the name of federalism. There are districts where there have been no economic and development activities. We have seen in the past also that the situation of conflict was invited by economic inequality. This inequality is due to the imbalance in economic opportunities for different regions and the failure of implementing economic development plans. The mid western and far western regions are the most backward regions of the country. Despite huge potential, Karnali region remains grossly underdeveloped. If the planners in the past had successfully taken the decentralising path, the people wouldn’t have been left dissatisfied. This happened due to huge economic disparity between the various regions. An economically decentralised country holds more promise than a&nbsp; federal structure.</p>',
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			'article_category_id' => '40',
			'title' => '‘Development In One Region Should Complement Development In Another’',
			'sub_title' => '',
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			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Pitamber Sharma.jpg" style="width: 163px; height: 182px;" vspace="2" />Dr Pitamber Sharma</b></div>
<div style="text-align: justify;">
	Geographer and Regional Planner</div>
<div style="text-align: justify;">
	There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The interim constitution says that the states, once created, must be autonomous. To ensure such autonomy also in the economic field, the states must have ample resources. How do you see the feasibility of such economic autonomy of the proposed states?</strong></div>
<div style="text-align: justify;">
	Being self-reliant will depend on the number of states and the criteria on which they will be created. In Nepal, autonomy is interpreted only in the political sense. It is often forgotten that political autonomy remains circumscribed in the lack of economic autonomy. If a state or province has to rely on the centre for all its development needs, how can it exercise autonomy in political or economic decision-making? All states may not have all the resources. However, care should be taken that each state is carved, as much as possible, in a way that it has at least some basic resources to complement its development efforts. There are 14 states proposed by the Constituent Assembly’s state restructuring committee. Many of these proposed states are simply not viable economically or politically. I believe that in Nepal we still have enough scope to design states as planning units. The foresight we show today will make it easier to deal with the problems of tomorrow.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the appropriate geographical delineation for distribution of natural resources among the new states?</strong></div>
<div style="text-align: justify;">
	Nepal is a country with enormous geographical and topographical diversity. This diversity in many ways has determined the type and distribution of natural resources. The Terai plain as well as the Inner Terai are rich in agricultural resources. This area also has a unique wildlife. Similarly, the hills and mountains are rich in biodiversity resources, hydro power, nature- and culture-based tourism resources etc. The element that links and complements the geographical diversity between the hills and the plains is the hydrological system – the major river basins of Nepal. There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources. However, we do not live in an ideal world. While natural resource endowment is important, equally important are the historic aspirations of the diverse communities that inhabit the different regions. These aspirations also need to be addressed in the formation of states. Nepal’s move from a unitary state to a federal one is dictated in many ways by these aspirations.<span>&nbsp;&nbsp; <br />
	<br />
	</span></div>
<div style="text-align: justify;">
	In a country like Nepal, the crux of the issue of federalisation is that the development in one geographical and resource region has to complement the development of another region. That is the basis on which the resources need to be considered in designing federal states.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Some political parties are strongly raising the demand for states based on ethnicities. How challenging will it be to manage and distribute the resources along these lines instead of geography- and resource-based states?</strong></div>
<div style="text-align: justify;">
	The political discourse on federalisation in Nepal has been dominated primarily by the issue of ethnicity. Not much attention has been paid to the attributes of an ethnic state, or even what comprises an ethnic state. Some people are scared of the word ethnicity altogether. The reality is that ethnicity makes a significant difference in the lives of people.&nbsp;Nepal has 100 designated ethnic groups according to the 2001 census. And there are 92 languages spoken in the country. Major ethnic/caste groups in Nepal have their territories of traditional habitation. The groups have settled continuously, are relatively concentrated, and have a significant and dominant, if not majority presence in particular areas. This is true for all large and small aadibasi and janajati groups and the Chhetris. However, the dalits do not have their own distinguished geographical territory or a separate identity by virtue of language.&nbsp;This is in spite of the fact that they comprise the third largest ethnic/caste group and the most marginalised population in Nepal.<br />
	 </div>
<div style="text-align: justify;">
	If all major ethnic groups in Nepal were to have their own states, it would be an enormous challenge to manage and distribute natural resources. Ethnic boundaries rarely coincide with resource boundaries. Even macro watershed would be divided among different ethnic domains. All hydropower resources would be in the domain of hill/mountain ethnic groups, with none in the Terai. The capacity of ethnic states to deal with the issues of mitigation and adaptation to climate change would be extremely limited. It is because this would require a coordinated watershed level response.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you think that the redistribution of resources may ignite resource conflict after the formation of new federal states?</strong></div>
<div style="text-align: justify;">
	As I have mentioned earlier, much would depend on the criteria used in the designation of states, and of course the number of states created. The experience of other countries show that conflicts over control, regulation, use, benefit and maintenance of resources, particularly water, are among the common conflicts resulting from federalisation. Constitutional provisions are therefore made for arbitration and resolution of such conflicts. (Highlight.) The redistribution of resources is ensured mainly through inter-governmental transfers. However, to assure that the central government has enough resources to offset imbalances between the states, some clarity is required with respect to the share of local/state revenue going to the central treasury.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, you think the 14 states proposed by the CA’s State Restructuring Committee is not practical?</strong></div>
<div style="text-align: justify;">
	The idea of 14 states proposed in the draft report of the Constituent Assembly’s State Restructuring Committee, in my view, is neither rational nor appropriate. For a country of Nepal’s size, 14 states will be too many.&nbsp;If ethnicity is the only criteria considered for the designation of states, I see no justification for at least four of the proposed states.&nbsp;Jadan has a population of 50,000 while Bhotes comprise only 1.2 per cent of Nepal’s population. Sherpas total only 90,000 people and a mere 21 percent of Nepal’s total Sherpa population live in the proposed state. Additionally, Sunkoshi and Narayani have as mixed a population as any other ethnic state. One of the major problems with the report is that it does not lay down any principles for states’ formation. For example, when does an ethnic group merit the status of a state as opposed to an autonomous region within a state?<span>&nbsp;&nbsp; The report does not provide answers to these kinds of questions.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Running and maintaining the state affairs is a costly proposition. How would the states help in mobilising resources for the nation while meeting their own recurring costs?</strong></div>
<div style="text-align: justify;">
	At present, only nine among the 75 districts are in a position to generate revenues that go beyond meeting their recurrent expenditures. In other words, if all the proposed states of Nepal are to be in a position of meeting their recurrent expenditures and generate a surplus, it is basically from the revenue from these nine districts that will have to be somehow apportioned among the states. As I said earlier, inter-governmental transfers will have to play the key role in maintaining the financial viability of the states. Inter-governmental transfers should ensure that (a) all expenditure assignments of the states can be met through these grants and (b) that it should also provide the basis for basic long-term investments required for mobilising resources. In Nepal’s case, for example, the states falling under the current mid and far-western regions will need massive investments from the centre for at least 10 to 15 years, by which time they could be self-sustaining. Investments by the centre on key infrastructures in the state will remain crucial. One of the problems that the state governments in poorer states will have to face is the flight of capital as capital flies out from low-yielding states to high-yielding states. A situation can easily arise where the poor states become poorer while the rich ones become richer. This will emerge as a big challenge in the management of federalism. The success of the federalism enterprise may as well lie in the extent to which they are enabled to mobilise resources.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What may the reason that there is no meaningful debate taking place on state restructuring and the form of federal system?</strong></div>
<div style="text-align: justify;">
	The political parties are ignoring the most critical and operational issues of federalism. It was Maoists who raised the issue of the federal republic and turned it into a national agenda, and they did it right. The rationale for the federal republic was to break, once and for all, the shackles of a feudal, overtly centralised, monarchic, predatory state. This was a historic achievement. For the first time in nearly two-and-a-half centuries, it set the stage for redefining and reimagining Nepal. But the Maoist perception went astray because of taking ethnicity as the sole basis for federalisation. As a result, the question of resources, development and meaningful devolution of power remained ignored. The two other major political parties – the UML and the Nepali Congress – are still taking time to fully own the idea of a federal Nepal.&nbsp;It is evident from their reactive approach to the whole issue, so much so that their official positions are not yet clear. The Madhes based political parties too made the federal agenda their main political plank. But they only took it as far as it challenged the colonial flavour of the policies of the hill-centred Nepali state vis-a-vis the Madhes. The ‘one Madhes, one state’ slogan was raised as a vehicle for economically circumscribing the hills and making it a hostage of the Madhes, however defined. The ethnic dimension is critical and important but no less important is the issue of dealing with poverty, exclusion, and in a fundamental sense, the mode and meaning of development. The two issues are no doubt linked but one cannot be a substitute for the other.<br />
	 </div>
<div style="text-align: justify;">
	Thus the debate has centred on issues of identity and emotion rather than the more substantive issues of strategy and resources for development. I believe that once the dust settles and the states come into being, development will once again emerge as the agenda around which politics will revolve.<span>&nbsp;&nbsp; </span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What should be the main objective of federalism in Nepal’s context?</strong></div>
<div style="text-align: justify;">
	The objective of federalism in Nepal should be the creation of a prosperous country which will benefit all, irrespective of ethnicity, caste or class. The rational for federalism in Nepal has to rest on three premises. The first is the recognition of the ethnic, linguistic, cultural and regional identity and aspirations of the diverse population groups that inhabit Nepal. For over two centuries, the Nepali speaking, upper caste hill dwellers following the Hindu faith namely Bahun and Chhetri enjoyed the privileged patronage of the Nepali state.&nbsp;Shared ownership of the state requires that progressive ethnic, cultural and regional identities are given due recognition. The second is to facilitate rapid, equitable and inclusive development so that livelihoods of all, and particularly of the vulnerable, marginalised and disadvantaged groups, can be rapidly improved. This requires that adequate attention is paid to natural and human resources that can provide the basis for equitable and inclusive development. The third is to decentralise and devolve power to the lowest possible level so that the roots of a truly participatory and accountable democracy are strengthened.</div>
<p style="text-align: justify;">
	Two concepts, I believe, can help us move towards a federalisation that takes identity, inclusive development and devolution as the point of departure.&nbsp;The first is the concept of ethnic/caste groups that have suffered from historic discrimination and have a dominant presence in geographically adjacent and contiguous areas. The second is the concept of special autonomous areas. Following the first concept, federal units can be formed around a few major ethnic/caste/language group habitats that have historically remained in adjacent or contiguous areas, and have developed a sense of ethnic affinity over time. Such federal units can incorporate areas with existing or potentially sustainable natural resource as well as economic base. Following the second concept, special autonomous areas can be designated within federal units with particular ethnic/caste dominance.</p>',
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			'description' => 'There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.....',
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			'title' => '‘Political Parties Must Honour The Constitutional Provision And Form State Restructuring Committee',
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	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Prakash Chandra Lohani.jpg" style="width: 162px; height: 180px;" vspace="2" />Dr Prakash Chandra Lohani</b></div>
<div style="text-align: justify;">
	Former Foreign and Finance Minister and Co-Chairman of Rastriya Janashakti Party</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it.<br />
	 </div>
<div style="text-align: justify;">
	<strong>The state restructuring committee has not been formed yet. What are the reasons behind it?</strong></div>
<div style="text-align: justify;">
	It is clearly specified in the interim constitution that we should have a state restructuring committee. So, it is the responsibility of the government as well as of the political parties to ensure that the state restructuring committee is formed. The government as well as the major political parties have not fulfilled this responsibility. In fact, the state restructuring committee should have been formed while the Constituent Assembly was in its first session. The fact that this has not been done as yet is a reminder of our negligence towards the constitutional provision. I think when Pushpa Kamal Dahal was the prime minister, he tried to form it. He nominated Dr Ganesh Gurung to head it but the parties concerned were not able to agree with the names of other members. So, the body formed with Dr Gurung as its head did not take the full shape. It became a one-man defunct body. After Dahal left, Madhav Kumar Nepal took over the reins. At that time also, smaller parties like ours have been constantly telling the bigger parties to meet this constitutional provision.<br />
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it. When madhav Nepal was the Prime Minister, I don’t know if he ever tried to push this process forward. Most of the time, his government and the Maoists were at loggerheads with each other. There was no real initiative to draft the constitution. They spent their energy in the struggle for power. That is the reason why the state restructuring commission has not been formed yet. In fact, it was not an agenda of priority for the Maoists, Nepali Congress and the UML.<br />
	 </div>
<div style="text-align: justify;">
	They simply ignored this issue. Now, after the year-long extension of the Constituent Asembly, normally one would expect them to try and form this committee. However, they have ignored this again and we are now left with only two-and-a-half months from the deadline for promulgating the constitution. And still there is no seriousness about satisfying this constitutional provision. This is a sad story, to say the least. Now, the Maoists are saying that it doesn’t make any sense to form the state restructuring commission because the thematic committee working on state restructuring has already come out with its report. But what we have been saying is that this is a constitutional provision. If this provision has to be ignored, then people must prepare a proposal, make a constitutional amendment, take it to the parliament and remove this article from the constitution. As long as this article is there, we have to make sure that we honour it. I am sure this is an issue that will come up in our subcommittee meeting soon.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, it would not be possible to go ahead with the state restructuring without the commission’s report?</strong></div>
<div style="text-align: justify;">
	The state restructuring commission has to submit its recommendation before we make a final decision on state formation in this country and on the number and size of the provinces and many other issues related to federalism. We cannot ignore this constitutional provision. The responsibilities of the committee are to advice and provide suggestions.<br />
	 </div>
<div style="text-align: justify;">
	The constituent assembly has a right to either reject or accept them. Therefore, we must give them the opportunities as specified in the constitution. I think if we go about deciding the number of states without the commission’s recommendation that would be ignoring the provision of the constitution. It would neither be proper or correct nor acceptable.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Why has there been no meaningful debate held so far for state restructuring?</strong></div>
<div style="text-align: justify;">
	It’s because different political parties have different propositions. Their formal proposition is different from what they say in informal interactions. This is also the part of the problem. I think if we have a state restructuring committee, it would help solve some of these contradictions. There has not been serious debate among the political parties primarily because the three major political parties have not given attention to this issue. They are involved in power struggle all the time and busy speculating on who would be the next prime minister. In a way, it is their sense of irresponsibility and negligence towards the commitment made to the people when the constituent assembly elections were held.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Which model of fiscal federalism would be most appropriate for Nepal?</strong></div>
<div style="text-align: justify;">
	It is the question of devolution of authority. One of the more important aspects of this is the financial authority. Till now, Nepal has been a centralised state. Most of the resources are collected by the central government. Now, we want to make sure that we devolve fiscal authority to states and also to the village development committees (VDC) so that they can raise resources on their own. I personally think that if the central government raises 60 per cent resources, remaining 40 per cent would be raised by the local government bodies, states and the VDCs.&nbsp;We have to work along the line of fixing such a ratio. I think 60:40 ratio would be quite logical.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you see the danger of improper distribution of revenue in federal Nepal as the source of revenue would not be uniform in all the states?</strong></div>
<div style="text-align: justify;">
	I think we also need a financially strong central government. This is because, inevitably, some provinces are going to be financially weak. They may have the resources but these are largely unexploited. For example, in the hilly areas, hydro resources are there but it will take time to exploit them.In the mean time, we will have to find a way to compensate them for the lack of resources. That needs transfers from the central government.</div>
<div style="text-align: justify;">
	It will work out depending on population, human development index and so many other relevant variables. We have to give a sense of equity and justice to people in all the provinces of this country.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The idea of ethnicity based federal structure has courted big controversy. How does ethinicity-based federal structure fare in terms of fiscal federalism?</strong></div>
<div style="text-align: justify;">
	There is a big controversy on this issue. No doubt about that. Different political parties have recommended number of provinces varying from seven to 14. One of the remarkable things is that no particular ethnic group is in the majority in their proposed respective states. Take the case of Limbuwan, for example. In Limbuwan, you have a total of 30 to 35 per cent Rais and Limbus if you combine both the communities. The rest 60 to 70 per cent are non-Limbus. Therefore, to go ahead with the idea of ethnic states, in a way, might alienate the other majority population and may create ground for conflict.<br />
	 </div>
<div style="text-align: justify;">
	The important thing is representation in the provincial and national parliament in line with the ethnic distribution. We have to assure and be clear on that point. Once you achieve that, I don’t think we should stress too much about this ethnic issue. People want representation in the power structure. And that representation must reflect the underlying distribution of the ethnic population. Once there is the electoral system, it makes sure that the ethnic representation is there in line with their ethnic distribution of population in the country. I think it would solve a lot of problems. Once you move in this direction, emphasis on ethnicity alone is going to wield less importance.</div>',
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			'title' => 'Horizantal, Vertical And Product Expansion',
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	Small sized loan sans collateral, group savings, small-scale entrepreneurs,&nbsp; diversified utilisation and simple and flexible terms on credit are among the features of micro-finance companies. </p>',
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Hari Bhakta Upadhyay Adhikari</span></b></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Gemstone Expert</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;"><span style="letter-spacing: -0.1pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with.</span> <br />
	</span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Being a civil engineer, what attracted you towards gemstones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In my 25 years long career with the government, I reached a lot of places in Nepal. I was interested in herbs too. Working as an engineer, I also went on gathering information on gemstones of Nepal. With a technical background, it was easier for me to understand them. After I took up voluntary retirement from government job in 1991, I began intensive study on gemstones. I studied a lot of literatures on gemstones. Based on my study of 18 years, I have written two volumes of a book on gemstones named ‘Nepal Ratna’. These books are helpful to gain knowledge on precious stones.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Where did you find the major concentration of such stones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In Kaligandaki river, ruby, sapphire, tourmaline and jasper are available. Trishuli river is a treasure house of Topaz. Madi, Phidim and Karnali rivers have garnet. Narayani, Trishuli and Mahakali rivers have kyanite, quartz and jasper. Taplejung, Manang, Sankhuwasabha, Bhojpur, Jajarkot, Achham, Bardiya, Kalikot, Lamjung and Dhankuta have emerald, ruby, sapphire, beryl and other precious stone. Similarly, corundum, topaz, quartz, garnet, aquamarine, opal, jade, moonstone are found in Nepali mountains from east to west. In Ganesh Himal, I had found a mountain of ruby.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">You ‘had’ found a mountain of ruby. Isn’t it there now?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Nepal Metal Company was established in 1976 with Hyderabad Industries Limited, Government of Nepal and ordinary Nepali people as shareholders.&nbsp; After Nepal Government and the Indian company, the largest shareholder was Mohan Gopal Khetan and he was very influential in the company. I too had some shares. At the 14th annual general meeting of the company in 1995, I raised a strong voice that the ruby extracted from Ganesh Himal was being exported without authorisation. The meeting formed a seven member investigation committee with me as its head. But none of the members agreed to go to Ganesh Himal with me to investigate. Later I found that someone had told them that Mohan Gopal Khetan might cause them great harm. So, I too did not go there at that time. Later in 1996 when I went there, the hillock that I had identified earlier as the deposit of ruby was blasted out. The mound of 15 metre width and eight metre height was estimated to contain 19 metric tonnes of ruby. However, though the ruby from the hill was taken away like that, there still is a very high potential of ruby deposit in the 60 hectares area around that destroyed hill.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What would be the value of the ruby there? </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Ruby now is priced at Rs 17,000 per carat. Five carats make one gram. So one gram is worth Rs 85,000. That means, the 19 tonnes of ruby converted into money at today’s price would be sufficient to meet the government budget of Nepal for 500 years at today’s budget size. The then royal palace played major role in taking out rubies from there.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Despite such immense availability of gemstones, why is nothing being done?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">There is utter lack of human resource with good knowledge of gemstones. Even the department of mines under the government does not have a gemstone expert. There are no academic courses in this field so there is no possibility of gemstone experts being developed for the future. The government must do something urgently in this.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What have you done personally towards it?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">After I began studying gemstones, I felt the serious lack of human resource. Then at my own cost, I established Gemstone Research and Training Centre and began providing trainings. But, now I have discontinued it due to the power outage. Till now I have trained 80 persons on identifying gemstones, cutting and polishing them, cutting with the use of modern machines for export quality finish, carving hole with the ultrasonic drill machine and identifying and certifying the stones. I have been providing trainings too going to different offices under the Department of Cottage and Small Industries. And I have also designed a training course to be given by the Department on finishing gemstones.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What are your trainees doing now?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Some are running their own businesses. Some others are working in this sector at Thamel and in Bhaktapur and Surkhet.&nbsp; But most of them are not in this field. Due to the lack of capital, they have not been able to mine the stones and run factories to process them.&nbsp; <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What about government licensed gemstone exploration or mining?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">&nbsp;There are very few people who are in gemstone mining with government license.&nbsp; Most of the mines are illegal. I have heard that tonnes of raw gemstones are exported every month to Jaipur in India.&nbsp; Nepali ruby, sapphire, tourmaline and aquamarine are exported to Japan, Germany, America, Singapore, Switzerland, Belgium, Sri Lanka and South Africa. But I have not come to know anyone who holds a license to mine ruby, sapphire and aquamarine. Quartz is mined at Dhading, Gorkha, Rasuwa, Darchula, Bajhang and Sindhupalchowk. Similarly, aquamarine is collected from Taplejung and Rasuwa while Tourmaline is collected from Manang and Jajarkot. Garnet is mined from Sankhuwasabha and Ruby and Quartz from Dhading.&nbsp; These stones are mined without license and exported. The government has failed to see that.</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Didn’t you talk to the government for cooperation on locating and mining the gemstone deposits?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">I talked to Sahana Pradhan and Hridayesh Tripathi when they were Ministers of Industry but they declined the request citing the lack of budget. I have talked to the Department of Mines and Geology time and again. But nobody cares. In fact the Department does not have experts. So I am focused on producing qualified human resource.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What do you suggest as the most important thing to do in this field?&nbsp; </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with. I am 81 years old now. I wish to see three training centres coming into operation within my lifetime. If that happens, hundreds of thousands of Nepalis would get employed and Nepal’s economy would turn around.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">How do you see the future of gemstones in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">Water resource helps the economy in an indirect way. The electricity generated from water should be first used to run factories and produce goods which can then be exported to get the money. But, gemstones can be sold straight from the mine. Nothing is being done in Nepal in this sector. I believe the kyanite (aluminium silicate) deposit of Nepal can meet the aluminium demand of the entire world. Similarly, gemstone kyanite costs US $ 1500 a gram. A truck full of such kyanite is illegally taken to India every month. The Customs Department and the police do not know about its value and usage as they are ignorant about the precious stones. The illegal mining and export must be stopped. If the government involves the private sector in this field, it can contribute more than hydro and herb resources do to the economy. </span><br />
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<p style="text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Krishna Prasad Kafle</span></b><br />
	</span></span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Mines Expert &amp;</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Former Superintendent Geologist, Department of Mines and Geology</span></span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the situation of the mineral resources in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">During the Rana period, minerals like iron, copper, cobalt, lead, zinc were mined in different places. It was a compulsion to operate these mines as there was no other way to get such minerals in Nepal. Charcoal was used as the fuel to heat the ore to extract iron and copper from the ore. Such metals were used for making household utensils and farm implements. Iron extracted from Thoshey mine of today’s Ramechhap district was used for making gun barrels by the then government. Historical records show that nine barrels were produced in a day. The remains of the factory and traces of mine excavation can still be found there. Similarly copper and lead were mined in Baglung, Gulmi and Myagdi, and cobalt was mined in Arghakhanchi and Gulmi. Copper is available in many places. Copper mines of Marma, Khandeshwori and Siddhi Khani in the eastern Nepal are some of the well-known ones. In Myagdi and Baglung a lot of work was done on mining. Bhainse and Pandav mines in Myagdi district are a few examples. However, they were all in small scale. The studies in the course of 50 years by the Department of Mines and Geology have identified various minerals found in Nepal. Among them, some may not be viable to mine commercially at present but have possibility in the future when the price of such minerals may increase. As more studies are conducted and technology becomes cheaper, we may go ahead with excavation for such minerals.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What have these studies found about the estimated size of mineral deposits in Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The deposit size differs for different minerals. If you look at the iron mine of Fulchowki of Lalitpur, it is around 10 million tonnes. Similarly Thoshey mine has around 16 million tonnes of iron as per the estimate by the Department which is supported also by the study made by a new mining company interested in this mine. The Department has located lead, zinc, copper in different places. In non-metallic segment, limestone, used as basic raw material for cement industry, is found in huge quantity. A deposit of 1.25 billion tonnes of limestone has been proved and places have been identified with probable deposit of 1.50 billion tonnes. Based on these data, 29 licences have been issued for limestone excavation and 196 licenses for limestone exploration. Hetauda Cement, Udayapur Cement, Himal Cement and Annapurna Cement are the examples of the cement factories that are utilising the Nepali limestone.&nbsp; Now additional cement factories are set up or are being set up in Dang, Salyan and Rolpa utilising the limestone mines there. In Arghakhanchi, Dynasty Cement Company is already in operation. In Udayapur and Hetauda, new factories based on Nepali limestone mines are coming up. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Now many cement factories are using clinker imported from India. Currently 40 to 50 per cent of Nepal’s cement demand is supplied by local factories. As the new infrastructures are being set up in the country, the demand for cement is going up in the similar speed. So, cement industry have good prospects in Nepal. This increased demand can be met by cement produced in Nepal with Nepali limestone. Thus Nepal can be self-reliant on cement with the available limestone deposit.&nbsp; Gypsum is the other mineral required for cement production. Though that is not found in a large quantity so far, there is possibility to find it. Explorations and studies must be continued. Other minerals required for cement industry are coal and iron. Both of them are available in Nepal. If government issues licence and no local problems arise, Thoshey mine can supply the iron to Nepali cement industry. Gypsum can be imported from Bhutan and India. There is possibility to find it in the area around Pyuthan, Dailekh and Surkhet.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Then why could not Nepal cash in this wealth so far? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash in this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. The government has issued 451 licences for exploration of minerals and 80 more licenses are issued for excavation. Recently, the awareness about the importance of this sector is growing.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">People say that though the types of minerals found in Nepal is very large, the size of the deposits are so small that it is not economical to mine them. What is the exact situation? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">When we were studying a copper mine in Dadeldhura, we found gold, copper, tungsten, nickel, molybdenum, bismuth and even cobalt from the same mine. It is a poly-metal sulphide deposit which can be used as multi mineral mine.&nbsp; The tendency is such that we look for a certain mineral and when we notice that the deposit size of that mineral is not economical, we leave that site without trying to explore about the presence of any other mineral there. There was a UNDP project conducted to explore minerals in Nepal and that too concentrated only on copper, lead and zinc, which are called base metals. If the project had explored for other minerals as well on the same mines that would have yielded significant benefits. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Places like Myagdi, Baglung, Parbat, Gorkha, Solukhumbu and Ilam have mineral deposits. Gemstones are available in Sankhuwasabha, Dhading, Rasuwa, Jajarkot, etc. Different places are suitable for different minerals. The minerals are scattered all over, from the mountains to the Terai. We have failed to make a commercial use of them. Had we utilised them in time, we would have made tremendous economic progress already. For example, the best high-grade magnesite deposit of South Asia is in Dolakha district. But unfortunately we failed to excavate it on time and take it to the market. With scientific advancements, even the medium grade magnesite has now become as good as the high-grade. As we don’t have internal market for dead burnt magnetite bricks, we have to export it to other countries where such bricks are used in industrial units that have high temperature furnaces. Such bricks can resist up to 2300<sup>0</sup> Celsius temperature while normal bricks can’t resist more than 700<sup>0</sup> Celsius. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What about other minerals such as gold? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The gold deposit in Nepali mines is very small. However, gold is priced very high. Therefore, though the quality of gold that can be mined in Nepal may be small, its value is high. Therefore, even if the deposit of this mineral is small, it can be economically beneficial to mine. Our rivers like Karnali, Chamelia, Seti, Bheri, Budhi Gandaki, Marsayangdi and Kali Gandaki have gold in their sands. Local fishermen search for gold ore in these rivers and sell it in the market. Such ores have 60 to 99 per cent of gold. Precious metals and precious stones like ruby, sapphire, tourmaline, aquamarine are highly priced. Therefore, though they may be in small quantity, their value is high and it is economical to mine them. Metals like gold, iron, copper and zinc have their own value. They are found in Nepal and have a good market.&nbsp; But in the absence of proper mining, most of them are wasted. The local people have a tendency to blast the mine. By doing so, some quantity is extracted, but the big pieces of the stones get destroyed in this process. They are doing so because they don’t know the proper method of mining. If they hire an engineer to help them mine it properly, it can give them better results. We have mines from small to medium size. We don’t have mines as big as the ones in Australia, China and Canada. In non-metallic segment, we have big limestone deposits.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of possibilities you see for the contribution of mines and minerals sector to the economy?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">At present, the contribution of mines and minerals to the country’s GDP is estimated at around 0.4 per cent. This goes up to 2.4 percent if we consider mineral-based industries as well. If we utilise our resources properly, we can increase this to 15 per cent within a decade. This is only by utilising the identified mineral locations. If new ones can be found, the benefit will surely go up.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What do you suggest to address the environmental issues that crop up with mineral exploration? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">That reminds of Godavari Marbles. The company was doing well.&nbsp; It had market in Bangladesh and India. But the locals and environmental activists did not allow the mine to function properly. You cannot take out the minerals without digging up which may damage the environment. However, there are ways to minimise the damage. Moreover, though the environment is damaged when the digging is going on, the location can be rehabilitated and the damage replenished once the digging is completed. The mine can be rehabilitated by tree plantation, herbs farming, horticulture or building a resort. In some cases, it is possible to do the entire exploration as well as processing under the ground so that the noise and dust pollution can be minimised. Or the digging can be under the ground and the raw mineral can be transported through tunnels to a far-away location for processing. However, it is not possible to avoid some environmental damage as the opening to the mine is naturally over the ground.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the commercial viability of petroleum mine and, metallic and non metallic mines? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The geological structure and study reports suggest the possibility for petroleum at different locations of Nepal. Oil migrates from one place to another if it can’t get tapped properly.&nbsp; On the basis of studies by the Government and foreign companies, Nepal’s Terai including Churia region is divided into 10 different blocks for petroleum exploration. Shell Netherlands drilled about 3.5 kilometres on the block No. 10 a few years ago and found it dry. Then the company left Nepal. Now Cairns Energy, a British company and Texana Resources, an American company are doing preliminary works like reassessing, evaluating the existing data, and analysing samples but they are not doing it in full scale. Seismic survey has to be done. Then blasting may be required in some places. And wires have to be laid extensively. But it is not possible to do all these at the current political situation of the country. So they are idle. The government has already received back what it has spent on these studies. The government has charged these companies around Rs 200 to 220 million. Among the 10 blocks, five blocks are taken by Cairns Energy and two by Texana. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Oil is being extracted in Assam in India and Potwar of Pakistan since 1970s. As Nepal lies in the same geographical belt, there must be petroleum in our country too. But we have not found it yet. So we can’t guarantee the presence of petroleum yet. In Dailekh we can see the petroleum seepage. Similarly, in Trans-Himalayan region too, we find traces of gas. That shows the possibility of petroleum gas.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which minerals should get priority in exploration and excavation in Nepal in your opinion? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Among the precious metals, gold has to be prioritised and on base metals, copper, nickel and cobalt must be given attention. On non-metals, limestone, magnetite, dolomite, phosphorite and talc have to be given top priority. As these minerals have good prospects to be found and there is international market as well in these, we should explore them also in new places. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The government should increase its budget in mining sector. In the last fiscal year, Rs 20 million was collected by the Department of Mines through licensing. But the projects under it get only around Rs 3 to 3.5 million as their budget which is too little.</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">There is a controversy going on in the mining of sand and stones. As a mining engineer, what is your take on it?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Rivers bring down sediments from the hilly region and deposit them on the plain areas where the water current is weak. It is a continuing process. If such sediments are not dug out it brings problem. It lifts the river bed and increases the risk of flooding. But extraction of such sediments must be sustainable and balanced. You should not take out more than what the river has brought down from the hills. The problem at present is that in some places these sediments are extracted extensively while at some places nothing is taken out. At some places, walls are built to save settlements from flooding but sands and stones are extracted even from the foundation of such walls. That is haphazard mining. There must be a mining engineer and a geologist in every Village Development Committee and District Development Committee so as to properly mobilise the resources.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the minerals in which the private sector has shown some interest recently? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Recent report of the Department shows there are 80 licensed mining companies. Some of them are in operation. Most of them are on limestone, coal, red clay, slate, magnesite and on semiprecious stones like kainite, tourmaline, marble and quartz.&nbsp; The licenses already issued cover 12 minerals.&nbsp; And the trend is growing.&nbsp;</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the biggest challenges and problems in utilising the hidden treasure called mineral resources of Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Minerals are mined, so they are also called hidden treasure. However some minerals are found on the surface as well, e.g. the boulders. The biggest problem is that the Mines and Minerals Act, Forestry Act and Local Self-governance Act have contradictory provisions.&nbsp; Forest authority imposes tax on everything in the forest while mining authority says the mines, even within the forests, are under the mining authority. On the other hand, the District Development Committee and Village Development Committee come up and say they have the right over the mine area within their locality. So, the miner ends up paying taxes to all these different authorities. The solution is to adopt one-window policy for tax collection. Three ministries should coordinate and make mining easy. Investors will pay tax when they generate income. Before that they generate employment.&nbsp; So they must be encouraged. If 10 cement factories produce 1000 tons of cement daily, they jointly create employment for 10 thousand people directly and another 20 thousand indirectly. That will have multiplier effect.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of market prospects do you see if the minerals can be extracted? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The magnesite bricks will not be consumed in our country; not even five per cent.&nbsp; We have to search for international market. Surface transport costs much, so we cannot compete with other producers of magnesite.&nbsp; Therefore, we have to export it even though we have to provide special subsidy in its transport cost. Priority should be given to the minerals that can be used within the country, so that the import can be reduced and the trade deficit can be reduced.&nbsp; We can make good money if we export sand and stones to India and Bangladesh on time. Iron ore can be used within the country by the cement factories and iron mills.&nbsp; Other metals and precious stones have market everywhere in the world.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which five minerals would you like to specify as having the maximum commercial potentials?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Limestone is the most prominent. Then it is talc. Similarly important is magnesite as its mine operation is not difficult. If plants can be made and products taken to market, it has huge prospects. Only problem is of the fuel. A lot of coal is required. Kathmandu has natural methane gas reserve of 320 million cubic metres. It must be brought to the market. Precious and semiprecious stones, high priced metals and base metals must be highly prioritised.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">It seems that the mineral sector studies are very few and difficult to find. Why is it so? </span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">There are a number of research activities carried out, but not on the desired speed and scale. The problem is that the study reports are not made available to the public in a manner that makes them easily accessible to all those interested on it, by paying reasonable fee. This is essential to attract investors. About 60-65 minerals are said to be found in Nepal. Economic viability of such minerals has been changing over the time. For example, once gold was available in Kathmandu for Rs 9 to 10 thousand per 10 grams. That time, the Nepali gold mines were naturally uneconomic. Now that the gold price has increased to Rs 30-40,000 per 10 grams, the same mines may be economical. An authority should be designated to make the decisions regarding which mine should be brought into operation and which to keep on hold.</span><br />
	</span></p>',
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			'created' => '2011-02-27',
			'modified' => '2011-02-27',
			'keywords' => '',
			'description' => 'We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a',
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	(int) 6 => array(
		'Article' => array(
			'id' => '232',
			'article_category_id' => '40',
			'title' => 'Mining The Prospects',
			'sub_title' => '',
			'summary' => null,
			'content' => '<p class="MsoNormal" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><i><span aldine401="" bt="" serif="" style="line-height: 120%;">By M Rijal &amp; Gaurav Aryal&nbsp; </span></i><br />
	</span></strong></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 2.85pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">T</span><span aldine401="" bt="" color:="" serif="" style="">he present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next 10 years. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“We are talking about the previously identified mineral resources only,” says Krishna Prasad Kafle, a geologist and mines expert. “Once new mineral resources like petroleum are discovered, the contribution to GDP will far exceed even the present forecast of 15 per cent.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The future might look bright; the present situation, however, is still bleak. The fact is that Nepal is a net importer of gold, silver, copper, lead, zinc, iron and steel, aluminum, gypsum, salt, petroleum and high grade coal, among other minerals and mine-based products. “We can change the situation,” adds Kafle. “Nepal has tremendous mining prospects – let’s not doubt this fact. The geology of Nepal itself is the evidence to it.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Petroleum Prospects </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Sporadic oil exploration works in Nepal were first recorded in the 1930s. However, the first drilling was done only in 1989 in Radhanagar, near the eastern city of Biratnagar. The place is now Ward No 9 of Bahune VDC in Morang district <i>(see picture)</i>. Netherland’s Shell Company was involved in the drilling. The company drilled some 3520 metres beneath, but the “well” was found dry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">“Only if the company had gone little bit deeper, there was a chance to discover the hydrocarbon (petroleum) deposits,” claims a geologist on condition of anonymity. “As fate would have it, India had imposed economic blockade on Nepal at the same time. Drilling machineries had to be imported from India. The total daily operating cost of drilling sky-rocketed to as high as Rs 30 to 35 thousand (not adjusted with inflation). The company ultimately abandoned its plan of going deeper.”&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The Petroleum Exploration Promotion Project was set up within the Department of Mines and Geology. It gave momentum to exploration. So far, the Project has performed Airborne Magnetic Survey in 48 thousand sq km, photo-geological study in 60 thousand sq km, Reflection Seismic Survey in some 5 thousand line km, Gravity Survey in the entire Terai region, and Source and Seal Study in entire Nepal. Most significantly, the Department identified 10 <i>probable petroleum deposits</i> blocks in 1985. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“Nepal’s whole Terai and Churia range are the most potential petroleum blocks in Nepal,” says Shyam Bahadur KC, the Acting Project Chief. “This is the region constituting all 10 blocks identified for oil exploration.” Each block is of some 5 thousand sq km in area and is named from the west to the east <i>(see Table 1)</i>. The Nepalgunj and Chitwan Blocks (3 and 5, respectively) were leased to Texana Resources, Huston, USA in 1998. But the company postponed exploration works in 2000 citing security reasons. The company is said to have almost completed preparing various maps but has not revealed further as to what would be next. Five Blocks - 1, 2, 4, 6 and 7, respectively, were awarded to UK-based Cairns Energy in 2004. The company postponed works for four years and resumed in December 2009. The company is involved in developing the complete maps first. As for the remaining three Blocks - 8, 9 and 10, the government is preparing to award contracts through a bidding process most probably in the next fiscal year (2011/12). <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for the reasons for so many researches-planned focusing on the Terai and adjoining Churia range, the geologists have firm belief that Nepal’s Terai is similar in geography to the sub-Himalayan plains of Pakistan and India where hydrocarbon deposits were discovered and are extracted on commercial scale. The Potwar Basin of Pakistan and Digboy of Assam in India are mining hubs in the sub-Himalayan region. “From among the 10 Blocks, if we discover even a single medium size oil well, it can transform the economy of Nepal beyond anybody’s imagination,” KC asserts in an optimistic tone.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">The evidence of Nepal’s hydrocarbon deposits can be seen as the gas and oil seepages in various parts of Dailekh district in mid-west Nepal. For instance, the oil seeps at Padukasthan represent “biodegraded” light oil with geological source, whereas the gas seeps at Navisthan and Sristhan are of “thermogenic” origin, according to geologists. Further, the proportion of higher “homologs (C2-C5)” in the seepages of Dailekh district suggests gases associated with oil. The threat, however, in terms of capitalizing the potential hidden oil wells is that “hydrocarbon deposits are mobile by nature”. If not tapped in time, the whole petroleum reserves may move from one place to another even crossing the man-made boundary of any country – this is what most of the geologists fear in Nepal. </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Cement: On the Way to Abundance </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Among all non-metallic minerals, excavation of limestone – the basic element to produce cement, has increased substantially in the recent years. Limestone is in abundance in the country and predictions are that Nepal has a chance to be fully self-dependant on cement by the next seven months (August 2011). Some six new industries are coming to the fore, in addition to the existing 30 cement industries. “We can now be hopeful that the domestic industries may fully sustain the demand for cement,” says Dhruba Thapa, Vice President, Nepal Cement Industries’ Association. The industries, however, still have to import clinker, which is produced from limestone and used for cement production, from India. As of today, some 30 companies have received limestone mining permission from the Department of Mines and Geology, whereas 167 companies have received the limestone prospecting (exploration) license from the Department. And more than 60 companies have received the license to operate a cement industry from the Department of Industry. In Nepal, the volume of limestone deposits (of cement grade) is believed to be over 1.25 billion metric tons, according to the Department sources.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for other non-metallic mineral resources except cement, there are possibilities for unearthing dolomite, phosphorite, magnesite, talc, mica, ceramic clay / red clay, silica sand, salt, barites, calcite deposit and diatomite, etc, from various parts of the country. There are also possibilities for mining precious and semi-precious gemstones such as tourmaline, beryl / aquamarine, garnets, kyanites, rubies / sapphire and quartz crystals. Decorative stones such as marble, granites, quartzites and slate can also be mined. Construction materials such as boulders, cobbles and pebbles are also in plenty while fuel mineral like coal too has commercial prospect. As for the operating mines, there are a few in the country. For instance, mining of marble is being done from Godavari (Lalitpur) and Anekot (Kavre); pebbles are mined from almost every riverside and low-hills and are even exported to India’s booming construction industry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Metallic Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">In Nepal, the iron ore prospects and deposits are reported in 85 locations and the copper in 107 locations, zinc and lead in 49 locations, cobalt at least in 4 locations and nickel in at least 5 locations. At present, a Chinese company is involved in the mining of iron in Thoshe, Ramechhap. As for gold, there is no mine in operation as of today, but it is frequently winnowed out from the gravel and sediments of around a dozen rivers like Mahakali, Bheri, Rapti, Kaligandaki and Sunkoshi. Primary gold occurrences have been reported from Lungri Khola area in Rolpa; Banga Bagar, Gorang and Jamari Gad in Baitadi; and Bamangau in Dadeldhura. These areas are, however, yet to be explored extensively. The Department of Mines and Geology thinks that once the mining licenses are issued, the mines will automatically get the status of “operating mines”. As the Department has no mechanism to cross-check the facts going to the field, there is a compulsion to assume that the license holder mines are really operating. Same is the case for gold and other minerals. Two licenses have been issued to mine gold and are taken as the operating mines in the Department’s list without further evidence. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">As for Uranium, which is radioactive and so, a highly valued mineral, is also reported to have some deposits in Nepal. The sites are Jagati in Bhaktapur and Shiva Puri area in Kathmandu; Tin Bhangaley, Chandi Khola and Chiruwa Khola in Makwanpur; Buka Khola in Sindhuli; Janmari Gad, Banga Bagar and Gorang in Baitadi; and some traces in Chameliya river in Darchula. “Among the potential uranium sites, Tin Bhangaley (Makwanpur) and Gorang (Baitadi) prospects appear attractive, but economic evaluation of these sites are yet to be performed,” says geologist Kafle.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Methane Gas and Other Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Kathmandu valley that incorporates three districts of Kathmandu, Lalitpur and Bhaktapur is rich in methane gas deposits. The Department of Mines and Geology explored this gas in 26 sq km area in the valley and it was proved that 316 million cubic metre of methane gas deposit is available for commercial purpose. But it still remains unexploited. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Nepal is also affluent in other miscellaneous mineral resources. For instance, there are some 23 geothermal hot springs in Nepal. They are found in the vicinities of rivers like Mahakali, Marshyangdi, Trishuli, Kodari and Surai Khola, among others. The temperature of the hot spring water remains generally in between 40°C to 115°C. The hot springs can be utilized for tourism purpose, as people enjoy taking a bath into it. It is also believed that the hot springs have the healing power in illnesses like backache and arthritis. Thermal electricity can also be produced from the hot springs with the help of technologies.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Challenges</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Nepal’s mineral resources themselves have become the curse, says geologist Kafle. “From mountain to Terai, minerals are scattered all over the country. But we have failed to cash in them. Otherwise, we would have made remarkable economic progresses,” adds he. “Mineral exploration, mine development and establishment of a mineral based industry normally require large investment, sound technical know-how and long gestation period. We lack these all.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">It’s a fact, in a money-crunch country like ours, Foreign Direct Investment is a must to explore and utilize petroleum and other mineral resources, says another geologist KC. “The government of Nepal is not able to sufficiently finance the research and exploration of the mines and minerals. Usually the government provides the Department with Rs 3 to 3.5 million annually. This amount is not enough for us,” adds he. “ On the other hand, it is a global practice that the government rather than doing the exploration works by itself, invites companies for the exploration and investment. Even the powerful countries like USA, Norway, Saudi Arabia, etc invite the companies for the investment.” <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Further, there are high risk, uncertainty and long return period involved in mineral exploration and mining. And if the private sector is to invest in it, the government must develop infrastructures like road, electricity and telecom in the mineral deposit sites. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Yet another biggest problem is that the three laws of Nepal - Mines and Minerals Act, Forestry Act and Local Self Governance Act contradict with each other.&nbsp; For instance, the forest authorities impose tax on everything inside a forest, while the mining authorities say it is different and come under the mining rules and regulations. And the local government bodies such as District Development Committees (DDCs), Village Development Committees (VDCs) and municipalities claim the same taxation rights over the same resources. It is imperative that, to clear ambiguities, the government must make one window policy of tax mobilization vis-à-vis mines and minerals. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Way Ahead</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Capable technicians at the Department of Mines and Geology are frequently leaving the country in absence of career prospects and there is no significant entry of new technical manpower at the Department. Such a situation may cause severe hindrance to mining activities in the country. Further, the haphazard pebble and gravel mining activities, such as those in Nallu, Lele and Chapagaun villages of southern Lalitpur may lead to environmental degradation. Development should always be healthy, balanced and eco-friendly. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">For public scrutiny, it is extremely difficult to extract information from the Department and to some extent, from the Department of Industry. Mines and mineral related information should not be stored but disseminated and exposed through publications and media campaign on a regular basis. Mining potentials must be publicised so as to lure the potential investors and create awareness among the policymakers. This very thing is lacking in Nepal. <br />
	</span></span></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="line-height: 115%;">At least for the moment, only if the petroleum exploration works in the 7 leased blocks could enter the phase of drilling; it could be a silver lining to all those who wish to see the works moving ahead on a fast track. </span><br />
	</span></p>',
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			'description' => 'The present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next',
			'sortorder' => '167',
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		'Article' => array(
			'id' => '112',
			'article_category_id' => '40',
			'title' => ''The Government Has Not Recognised Advertising As A Real Industry'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.</strong></div>
		</div>
	</div>
</div>
<p>
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				<strong>In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Being a key player in Nepal’s ad industry for almost two decades, what is your evaluation of its evolution? </strong><br />
			Our market has seen tremendous change and ended with a 360 degree turn of success. We only had the state-owned Gorkhapatra and The Rising Nepal in the print media and Nepal Television and Radio Nepal in broadcast media to begin with. Most of the advertising two decades ago constituted government ads and notices. Over the years, Nepali advertising has taken a long leap because consumption patterns have changed and the market has changed, too, because of democracy and several other factors. Multinational companies (MNCs) were not there. FMCG (Fast Moving Consumer Goods) products were very few. Today, we have MNCs, new big companies and many FMCGs. All these changes have brought in new players in the market. The advertising situation has been changing every five years. Today, we are almost on a par with advertising industry in the neighbouring countries. But our online advertising has not grown as expected.<br />
			 </div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<strong>There seems to be unhealthy competition among the major players on holding onto the clients. How can this be controlled?</strong><br />
			Unhealthy competition does exist, but it is not as it was a decade ago. The clients have become more professional and demanding. Leading advertising agencies are under pressure to produce quality ads ever since the clients have started demanding effective campaigns. If you can deliver good work and service to the client, the client is bound to stay on. The smaller advertising agencies, however, continue to compete with each other by offering lower tariff and increased percentage sharing to the clients. I am sure this scenario will change with time once they come to terms with the professional demands of the market. Media exposure has led to clients demanding more professional service as they now know what’s happening in other countries. Compared to a decade ago, there are more advertising agencies producing quality work which has helped bring down unhealthy competition.<br />
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			<strong>Now the ad market of Nepal stands at around Rs 3.5 billion. Are the ad agencies having a good time? </strong><br />
			Yes, it is a good time for the ad agencies which are serious and professional. They are prospering and they will be prospering.<br />
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			<strong>Prisma has top profi le clients like Bottler’s Nepal, Samsung, Western Union, Ncell and Bajaj, to name a few. How tough is the competition among the agencies? </strong><br />
			The competition among the top notch agencies is very healthy and professional. We have a good portfolio of clients but in today’s age of competition, we have to be better than others and perform well to get an edge. So, the competition among the top notch advertising agencies is more in terms of quality and creative work.</div>
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			<strong>The number of advertisers has grown but the number of ads and the market value have grown more. What is contributing to this growth? </strong><br />
			Several factors have contributed to this growth. For one, our urban population is growing consistently and so is the demand for products and brands. MNCs like Unilever and Dabur are pumping in more investments. Another reason for this growth is the change in our consumption habits. Almost 60 per cent of our population is below 32 years of age. This population is literate and possesses decision making capacity which enables them to dictate the market, which in turn, demands the products to be competitive and good. This is where the advertising agencies come in the picture. The entry of new players into the market fuels increased advertising spending from the existing competitors. An example is, when today’s Ncell came in as Mero Mobile, Nepal Telecom was forced to turn aggressive. During its old days of monopoly, it never felt the need for advertising as it does today. Similarly, there are certain sectors that have grown tremendously in recent times. Today, the largest spender in advertising is the education sector. Real Estate sector is another major contributor to Nepal’s advertising industry.<br />
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			<strong>Is the lack of creative talent the only reason our advertisements are not at par with foreign advertisements? </strong><br />
			I, for one, do not agree with this. When you look at any other country’s advertisements, for example India, there is sectoral advertising. Each advertisement there targets a special section of the society. Nepal is a market with all sorts of consumers mixed up. I cannot make a very creative ad for a mobile phone company like Ncell as it should cater also to the consumers living in remote Nepal where literacy level is very low. I do not expect such audience to comprehend the message that I will be conveying through a highly creative ad. For example, I cannot compare the comprehension levels of the youth in Kathmandu and Solukhumbu. It’s a major reason why Nepali ads are created in the simplest manner possible. What use is creativity if it cannot sell a product? It would be unfair to judge the creative talents of Nepali advertising professionals given the constraints that they have to face. It would be equally unfair to compare us with international advertising which caters to people with high literacy levels and different mindsets from ours. You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural<br />
			Nepali audience, too.</div>
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			<strong>Aren’t the agencies pressurising the government to introduce a regulatory framework? </strong><br />
			We have been pressurising the government for a long time. Despite us being an Rs 3.5 billion industry today, the government has not recognised us and given us due treatment. During election time, politicians seek our assistance to create campaigns which means they do know the importance of advertising even for electoral purposes. However, once the government is formed, they forget that advertising should be treated like an industry.<br />
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			<strong>Today’s youth look at careers other than advertising. How does that impact the ad industry? </strong><br />
			One of the biggest challenges for our ad industry is the lack of quality human resource. We have not been able to create enough interest among the youth. They would rather aspire for a banking career, for example, which is secure as well as a rewarding career. Advertising is merely a small topic for them while in college and not part of their core curriculum as such. It’s ignorance that’s keeping them from a career in advertising. They probably don’t realise that advertising, too, can be a lifelong and rewarding career. Once they realise this, the problem of quality human resource will have found a solution.</div>
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			<strong>Almost all MNC ads are dubbed from foreign languages, mostly from Hindi. Can’t we come out with our own ads for these products? </strong><br />
			One reason for dubbed ads is the trickle-down effect of international media in Nepal. For example, multinationals like Unilever want to create synergy among the communication they are doing in this region as most people have already seen the same advertisements on Indian TV channels. Nepal and India have similar culture and consumption patterns. In India, too, they use the same ad in different languages in different states. This way, the advertiser saves the production cost of new advertisements and invests only in releasing them over a number of channels in different languages. Another reason is the celebrity endorsement. Indian celebrities are equally popular in Nepal. A possible solution could be ‘clean feed’ which will block the advertisements on foreign channels aired to Nepal, thus forcing the advertisers to create advertisements in Nepali. However, there is no such policy at this point of time.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Our ad market is only of Rs 3.5 billion. Isn’t it quite small in size when you consider that a single company allocates more than this for advertisements in other countries? </strong><br />
			You have to understand that our market size is rather small. You cannot compare the advertising budget of Indian corporates with that of ours. A company’s turnover usually determines the amount it wants to allocate for advertising spending. Another thing that we need to look into is the potential of the market in terms of growth which also induces the budget of the industry. Thirdly, the government policy doesn’t provide for tax exemption on advertising spending after a certain limit after which the money spent on advertising is not considered as an expense. This discourages advertisers from making sustained investment in advertising. In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.<br />
			 </div>
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The reported annual growth of 12 to 15 per cent of the ad industry is said to be mainly because of media infl ation. Do you agree?</strong><br />
			Inflation is created by the media but there is always a debate in the advertising sector for several reasons. You see electronic media suffering a lot during load shedding. On the other hand, there are advertising categories which have been shrinking because the whole industry has shrunk. Lately, noodles industries’ advertising spending has gone down heavily. But we are still growing. New breed of advertisers such as the real estate, education sector, and lately, DTH have come up. We are growing not just because of media inflation; there is a genuine growth, too. We expect to grow at 20 to 25 per cent looking at the pace of media growth but it is not happening because of the political situation and power cuts.</div>
	</div>
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		<div align="justify">
			<strong>What is the market share of Prisma?</strong><br />
			We are proud to be in the market for 20 years. There are good clients attached with us for more than a decade. Our clients have succeeded in becoming market leaders over the years. We consider good work, recognition and revenue as the most important. It’s important to enjoy a good profit even if the turnover is less. I cannot quote a market share for you but we are holding a good position in the market.<br />
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			<strong>Which Nepali ad do you think is the best, either by your agency or some other agency and why? </strong><br />
			The biggest and the best campaign that ever happened is the Ncell rebranding from Mero Mobile that we did. The campaign was very successful and we are very proud to have done this campaign. Also, it was the only rebranding ever happened in Nepal.</div>
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</div>',
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			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.',
			'sortorder' => '60',
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	(int) 8 => array(
		'Article' => array(
			'id' => '111',
			'article_category_id' => '40',
			'title' => ''An Advertisement Must Sell The Product'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.</strong></div>
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				<strong>We defi nitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal.</strong></div>
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			<strong>How do you evaluate the Nepali ad industry? </strong><br />
			The industry has grown a lot in the last decade and it is still growing. It’s a Rs 3.5 billion industry now. But there’s still the lack of trained, educated professionals in this field. It makes a huge difference in the output, especially in a creative field. The new generation, it seems, is more comfortable to work in the banks, the way the old generation preferred government jobs to private ones. In advertising, as is the case with any other creative sector, people who don’t want a nine-to-five job are more interested. And those who want to explore their talent join this industry.</div>
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			<strong>There is no categorisation of ad agencies. Every agency has the same basic tag of ‘Advertising Agency’. Is that alright? </strong><br />
			It is high time that we differentiate. When we help sell the products of the clients, we position them. Every product has its own positioning. Similarly ad agencies must be differentiated or, let’s say, positioned. We in Water Communication would like to call ourselves a strategy and design company. Others see us as a creative agency. I think creativity is essential but strategy must be stronger.<br />
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			<strong>A common criticism against the Nepali ads is that they lack creativity. Ad agency people say that highly creative ads tend to go a bit over the top and that the general public fails to catch them. Can’t we create ads that are simple, yet highly creative?</strong><br />
			Creativity must be saleable. If you can’t sell creativity, I don’t call it creative. The main purpose of advertising is to promote the sales of products. Creativity must be promoting the sales. We don’t make ads for the sake of creativity. In the case of Nepal, the boundary for creativity in advertising is limited. I have to sell the products of my clients anyhow. Clients have different needs. And we need to be flexible.</div>
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			<strong>Many ads are made in such a way that the focus is more on something other than the product or its value. Such ads, rather than promoting the products, end up confusing the consumers. What is the main reason behind it? </strong><br />
			The person or agency responsible for making the promotion strategy must be aware what they want to sell. If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.<br />
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			<strong>Mobile phones and the Internet are growing as big media. How is your agency trying to cash in on this opportunity?</strong> <br />
			The new media is coming up rapidly and has a huge scope. In Nepal, the mobile phone has a greater scope than the Internet as there are more mobile users. Around 30 per cent Nepalis have access to mobile phones. Despite knowing about this opportunity, many ad agencies are unable to tap it. Mobile phone is a medium which provides a direct contact with the customers. But we don’t have an up-to-date database for that. Marketing through mobiles is a recent phenomenon in Nepal. We are far behind countries like India, China or even Bangladesh. Our customers are semiliterate. Still print is the best media for us for the time being. The television has definitely gained in popularity lately. So, it will certainly take some time before advertising could be done through the new media.</div>
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			<strong>As you said, the industry has a big problem of skilled human resource. How are you managing this crunch? </strong><br />
			We definitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal. So, there are very few trained professionals in the creative department. In the marketing department, we manage with the products of private colleges.<br />
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			<strong>Celebrity endorsement is not used much in the Nepali ads, while we see that quite a lot in foreign ads. Why are our ad makers not interested in using the celebrities to make ads? </strong><br />
			A celebrity is already a brand. But the celebrity-brand is perhaps yet to find a wider acceptance in Nepal. A product is also a brand. Rajesh Hamal is definitely a brand. It’s the media that creates a celebrity who then naturally becomes a brand. But sadly, the Nepali media has not gone beyond Rajesh Hamal and a few other names. Stars are not made by advertising agencies but by the media. We have limited celebrities and almost all the advertisers are using them to endorse their brands.</div>
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			<strong>In creating an advertisement, who plays the important role - the advertiser or the ad agency?</strong><br />
			Both play very important roles. And both have a common purpose – to reach the consumers. Clients give their needs and requirements and agencies help them with the means to reach the consumers. At the end, that must sell the product. Some might say that advertisers influence the creation of ads while others might argue that such an influence is possible because the ad agencies are not competitive.<br />
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			<strong>What are the problems and challenges you are facing in this industry? </strong><br />
			The major problem we are facing is the lack of human resource. Another problem is the industry’s growth is not healthy and professional. There is unhealthy competition going on. There are many people who talk more and work less. There is no design policy. Such a policy would not only help to promote the products but also determine the country’s image. When we talk about Nepal tourism year, Nepal is not to be promoted only by the Nepal Tourism Board. Nepal has to be sold as a product. I don’t know if anybody has even thought about this policy.</div>
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		<div align="justify">
			<strong>What future do you see for the advertising industry? </strong><br />
			It’s going to be more competitive. It will be run by more professional people. Our market is very small compared to the Indian market. To survive here, agencies must have more professional people. Strategically, only strong agencies can come up with such human resource and compete. The small agencies that can’t compete won’t be able to survive in the market.<br />
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			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.',
			'sortorder' => '59',
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	(int) 9 => array(
		'Article' => array(
			'id' => '110',
			'article_category_id' => '40',
			'title' => '‘The Number Of Women In Advertising Is Increasing’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you set apart your ad agency among several others in the market?</strong><br />
			Advertising agencies are basically the same. Our ultimate target is to produce an advertisement that satisfies the clients and stays in the minds of the consumers for long. But definitely, we are able to set ourselves apart because of our philosophy. This philosophy defines me and my team. I and my whole team believe that we work hard, talk straight and are damn good at what we do. This confidence in the profession has established our team in this industry.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>With the number of ad agencies increasing every year, how tough has the competition become?</strong><br />
			I am happy that gradually people are realizing that the advertisement industry is a field with lots of opportunities. I don’t see it as a competition. I don’t think I am competing with anyone. Rather, I compete with myself. I have set some goals for myself and I am constantly working to meet these goals. I take each day as a challenge. I want to do better than what I did yesterday.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the problems of the Nepali ad industry? </strong><br />
			A major problem is the lack of skilled human resource. First, our youths are unaware of the opportunities in advertising. They either want to work in banks or in the multinational companies. So we are not getting smart and creative Nepali people even if we pay salary and other benefits on a par with these institutions. Second, we don’t have schools or institutions where we can enhance our creativity. An advertising agency has to hire a freshman. It takes at least a year for that person to learn everything. But when he is ready, another agency takes away that person. Third, even though we hire the best person in our company, our clients do not have confidence in them. They insist on hiring a foreigner for creative concepts. Thus the money that we could have spent in our country goes outside. Mostly, this money goes to India.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There are many ads that use the female body just as a means to get public attention. How do you see this trend?</strong> <br />
			Different people have different perceptions of the same thing. In my case, I believe showing females in an advertisement is not bad but how they are shown makes the difference. We live in a country like Nepal where we follow certain norms and values. No advertisement should cross the social limits such that it becomes unacceptable to society at the end. Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Do you implement your such ideas when you make ads? </strong><br />
			Being a woman, I think a lot before doing anything. I am very careful not to tarnish the image of females through my advertisement because with every woman I associate myself. Similarly, when I think logically as an ad maker, I know there are several things in the nature that can be depicted in an advertisement in the place of women to convey the message. If anything is shown unnecessarily, consumers</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How is the participation of women in this fi eld so far? </strong><br />
			As of now, there are many women working in this field. And I think their number is increasing. But there are very few women who are investing in this field or holding top positions. I have been able to establish myself because of my confidence. I never feel weak just because I am a woman. I think I can compete with men in every aspect. Every woman should feel this way.<br />
			 </div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Is it a fi eld suitable for women?</strong><br />
			I don’t want to categorise professions on the basis of gender. With confidence and creativity, everyone can do better in this profession. Women can compete with men in every profession. However, women still lag behind because of low self-esteem. Women should take a step forward and explore the opportunities in this sector. I strongly believe that an advertising professional can fit in any other sector because he/she gains a bit of many different experiences in this field -- marketing, designing, writing etc. This field has so much to offer to creative people.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What should be done to attract more women to this creative fi eld?<br />
			</strong>People become successful when they work in the field of their interest. If someone has an inner desire to be a part of the advertising industry, I would welcome them. However, they have to be able to face the challenges. I urge women not to feel weak or discouraged because this is a field where creativity counts, not the physical strength.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Who are your top clients? </strong><br />
			Chaudhary Group, Triveni Group, Sujal Foods, MariGold Foods, Khajurico Nepal are our top clients. There are several others, too. And we have some snacks and confectionaries in the list.<br />
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			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which Nepali ad do you consider the best, made either by your agency or other agencies? </strong><br />
			I consider the advertisement of U-n-Me tea to be the best advertisement of our team. I love this advertisement because it is very tender. It has a quality to touch the hearts of the consumers and remain in their minds for a long time. Among the ads made by other companies, I think the advertisement of Wai Wai Gyan Uday is the best for the beautiful amalgamation of caste and creeds of Nepal.</div>
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.',
			'sortorder' => '58',
			'image' => null,
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		'Article' => array(
			'id' => '109',
			'article_category_id' => '40',
			'title' => ''Advertising Is Growing At Breakneck Speed'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them.</strong></div>
		</div>
	</div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>v-chitra won awards under fi ve categories, including the “Best Creative Agency” Award, in the latest Crity Awards. What puts this company on the top?</strong><br />
			Our motto is: Everyday is a new beginning. So for us at v-chitra, winning an award is a thing of the past. But awards do put more pressure on us, as our clients expect more from us. At v-chitra, we believe that everyday customers have new choices. Everyday our clients have to renew their relationship with their customers so as to remain the first choice. So, we strive to make that happen, everyday.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which do you think is the best advertisement campaign and why?</strong><br />
			My next campaign will be my best one. Every campaign I develop becomes a part of my learning curve. It helps me experiment with new ideas and presentation styles. So, after making a campaign, I analyse it in detail to see if it could have been better. I make sure that I implement what I find in my analysis in my next campaign.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What is the market share of v-chitra? Who are its major clients? </strong><br />
			It is very difficult to calculate our market share in percentage. But what I can tell you is we are one of the fastest growing agencies. Our Major Clients now are the Chaudhary Group – Wai Wai and Rio; Syakar Group – Honda two- and fourwheelers, Honda generators and Philips; Pashupati Paints; Teletalk – Colors Mobiles, Yeti Travels, Rosebud School, and Balterio floorings, among many others.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Different sources have different estimates about the size of Nepal’s advertising industry. What is your estimate about the size of the ad industry? </strong><br />
			Genuine figures about the size of the advertisement industry are not available. These days, different sources are making different estimates. But we cannot comment on any of the estimates or verify any of them.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you see the evolution of the advertising industry in Nepal? </strong><br />
			It is growing at break-neck speed. Nothing can stop it. But there are some constraints. The biggest constraint is the shortage of professional human resource. As far as infrastructure is concerned, there is a great chasm between man and machine. The industry has invested in physical infrastructure but not in the professionalisation of human resource. Currently, a majority of talented youth is going overseas to study. The industry has failed to develop interest in the young talents towards advertising. At the recent Crity Awards, I was happy to see a category for the “Best Creative Youth.”But that’s not enough. We have to make an advertising career just as lucrative as a banking career.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Most of the advertising agencies play the role of a mediator between the advertisers and the media. Is that all an Ad agency is supposed to do? </strong><br />
			The most important function in advertising is to create. Creating new concepts and ideas, to effectively sell the products and services is the primary objective of any agency. Everything else in an agency is support service. At v-chitra, we concentrate on providing creative solutions that are based on sound marketing strategies. Without a sound strategy, all creative concepts will fail.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>With the demand for advertisements growing, there seems to be a mushrooming of ad agencies. What makes v-chitra stand out? </strong><br />
			We try to create effective communication platforms for the products and services we represent. Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There seems to be unhealthy competition among the major players of the advertising industry in terms of retaining the clients. What do you have to say about this? </strong><br />
			The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them. But the clients need to understand that they are causing a long-term, irreparable damage to their brands by associating themselves with such agencies.</div>
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		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In Europe and America, online advertising has come up really strong over the past few years. Why do the ad agencies in Nepal continue to ignore online advertising? </strong><br />
			Online advertising will increase only when the base of computer and Internet users is wide enough. Clients like to spend on the kind of media that has a wide readership, audience or viewers. Having said that, I think online advertising, too, is picking up in Nepal. The growth is slow, but it’s definitely picking up.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What is the situation of the availability of professional human resource in advertising?</strong><br />
			The youth have to be shown the rewards, financial or otherwise, for them to enter this industry. An agency can offer such rewards, only if it is itself rewarded. As of now, the clients expect many of our services free of cost; they think that 15 per cent media commission is enough. Even that is shared and stretched to the limits by corporate houses that see only their profit. But they need to understand that squeezing an agency beyond the limits affects them and their brands directly because it also affects, directly, the quality of service and creativity.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the challenges and problems of the advertising industry?</strong> <br />
			The lack of professional human resource is the biggest challenge. The industry needs more smart, young and energetic professionals. Alongside, we should generate new talents who will enhance the quality and scope of advertising in Nepal.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What do you expect from the government for this industry?<br />
			</strong> Advertising is self sustaining. It is purely an economic activity that survives on entrepreneurial initiatives. Businesses today have realised the importance of advertising. All that I expect from the government is to create an ideal business environment for the industries and services to flourish. Then the advertising industry will automatically sustain itself.</div>
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	<div style="clear: both;">
		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-26',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.',
			'sortorder' => '57',
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		'Article' => array(
			'id' => '108',
			'article_category_id' => '40',
			'title' => '‘The Advertisers Need To Realise That A Single Slogan Can Work Wonders For Them.’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.</strong></div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you view the Nepali advertising industry in the present context?</strong><br />
			The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you look at the current size of Nepal’s advertising industry which is said to be around Rs 3.5 billion?</strong><br />
			I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>What has prompted the growth in the industry’s market value? </strong><br />
			This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What rate is the Nepali advertising industry growing at, on an annual basis? </strong><br />
			Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry. <br />
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			<strong>What is the advertising spending of MNCs here vis-à-vis the domestic companies? </strong><br />
			The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Could you take us through your journey of 20 years with the advertising industry?</strong><br />
			In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What are the problems and challenges that the industry faces today? </strong><br />
			We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Even though Nepali advertisements have come a long way, we are still not in the same league when compared to global advertisements. Why so? </strong><br />
			I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Does the industry follow a particular line on ethical issues? </strong><br />
			Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.<br />
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		<div align="justify">
			<strong>What are the accounts you are currently working with? </strong><br />
			We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&amp;G and UTL etc.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which advertisement campaign are you particularly proud of, during your entire career? </strong><br />
			It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.</div>
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<div style="width: 595px;">
	<div style="clear: both;">
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	 </div>',
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			'created' => '2010-12-24',
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			'description' => 'I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.',
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			'title' => '‘We Need An Advertisement Censor Board’',
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	<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/crity-award.jpg" style="margin: 0pt; padding: 0pt;" /></div>
<p>
	 </p>
<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why was AAN formed and what are its activities? </strong><br />
			AAN (Advertising Association of Nepal) was formed as the umbrella association of the advertising industry. It was set up for the protection of the rights and welfare of the industry, and to formulate the policies. It plays a vital role as a bridge between the advertisers and the media enterprises.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Being an old hand in Nepal’s advertising industry, what is your take on its evolution?</strong><br />
			The advertising industry has now transformed from being a small business sector to a full-fledged industry. Having grown consistently over the years, it has gradually asserted its role in the corporate world. It’s unimaginable today that a product/brand can establish itself in the market without the help of advertising campaigns.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The advertising market of Nepal stands at about Rs 3.5 billion. Is the growth in tandem with the expansion in other sectors? </strong><br />
			This augurs well for the advertising agencies, for sure. In fact, the industry value should have been around Rs 4.5 billion owing to the inflation. However, political instability has inhibited its progress to a great extent. Looking at the positive changes, even the rice brands have started advertising which never happened before. Even though the advertising market has been growing at the rate of 15 to 20 per cent annually, the time has not come for us to get particularly happy about it.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you view the unhealthy competition among the advertising agencies? </strong><br />
			It is no secret that there is unhealthy competition to get ad accounts. However, the Nepali media is the main reason behind this unhealthy competition. The number of media houses has been increasing at an alarming rate despite the market remaining comparatively small. The lack of uniformity in the market value, non-existent market planning and direct marketing, among others, are the key reasons for the unhealthy competition.<br />
			<br />
			 </div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How can the unhealthy competition for holding the clients come to an end? </strong><br />
			There must be uniformity in the market rate. Next, it has become absolutely necessary that the ad agencies be categorised. Similarly, the media should be categorised, too. The government must issue licenses taking into consideration the respective categories. AAN has been working on this in association with various media groups. For example, we have worked with the Television Broadcasting Association to fix ad tariffs. Fixing a standard ad tariff will definitely create a favourable environment for the investors and help the market sustain.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Is the industry in dire need of a regulatory framework? </strong><br />
			To regulate the advertising market, an advertisement policy is mandatory, to start with. We have certain policies but they need to be updated with the changing time. The government must have a different advertising authority set-up to regulate the advertising agencies.<br />
			<strong><br />
			According to you, which Nepali ad is the best, in recent memory? </strong><br />
			Personally, I like Jagdamba Steel’s “Nepali Mann Mann ma” which incidentally, was produced by Welcome Advertising. It was voted as the most popular ad. Quality wise, I think Pepsodent ad is the best one.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In general, the youth is looking at several career options but not advertising. What could be the reasons behind this? </strong><br />
			There is no doubt that we have not been able to attract young talent. However, the youth is showing interest in being a part of the industry, off late. Colleges have included advertising as a subject in their syllabi and advertising training centres such as Infinity Advertising Training Institute, too, are being established. Therefore, we are looking at better times ahead and hope that more young people will look at advertising as a rewarding career. There is the lack of skilled manpower due to braindrain and also because the trained ones are enticed by the banks. If the advertising industry will be managed properly, most of the youngsters would be in this sector.<br />
			<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Why do our advertisements lack quality as well as creativity compared to the advertising standards abroad? </strong><br />
			My personal opinion is that Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity. The Nepali advertising agencies have been awarded with a number of international awards and certificates of merit since 2003. I will go as far as to say that our creative talents are second to none in South Asia. The annual Crity Awards have also encouraged the advertising agencies to produce better creative work. As the market gets more established with time, we should definitely be in a position to compete in the international market with a renewed vigour.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why were the recently held Crity Awards criticised and labelled as biased? </strong><br />
			Crity Awards is not confined to honouring advertising excellence. It is a celebration for the entire media industry. Any talk of branding the event as controversial is a baseless rumour. Recently, we organised a post-event programme for the ‘6th Crity Awards 2067’ where we had an interaction among the advertising agencies, media executives and journalists. We reached a conclusion that the awards ceremony did not have any reasons whatsoever to invite the wrath of the so-called critics.<br />
			<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>The corporate big-wigs are circumspect about investing in the advertising industry. How do you view this hesitation?</strong><br />
			Well, there is sufficient investment in the advertising industry and that is why it has transformed into an industry from a small business. The annual turnover of the industry is Rs 3.5 billion now. AAN has close to 140 ad agencies registered with it. Politically, once there is a peaceful environment in the country and we have a stable government in place, the investment will definitely increase. There is a good number of multinational as well as local brands looking forward to an investor friendly environment to start/resume investments. It is only a matter of time, hopefully.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Besides being an advertising administrator, you are also an entrepreneur in the industry. How are you doing on that account?</strong><br />
			Welcome Advertising is an independent agency, in operation for 21 years now. It is an authorised member of the International Network in Nepal as well as a production house. Welcome Advertising works with some of the biggest names in the market such as the Jagdamba Group, Unilever, G Phone, MS Group etc.<br />
			<br />
			<br />
			<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There has been an issue about exaggerating product features through advertisements. How do you plan to address this? </strong><br />
			The question you have asked is very relevant in the present context. These are the advertisements which are produced by the clients themselves that are courting controversies. For such problems, censorship of advertisements is the best solution that one can think of. Therefore we do need a censor board which will monitor and approve advertisements before they go to print or get aired. The government must take an initiative to this end by setting up a separate advertisement authority. Alternately, the government could give this responsibility to AAN.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>',
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			'created' => '2010-12-24',
			'modified' => '2011-01-02',
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			'description' => 'Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.',
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			'title' => 'Body And Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Most of the scientific claims made by product advertisements are derived from correlation rather than causation.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Body and Mind</strong><br />
			Even a single cell organism such as a bacterium acts as if it has a mind. It moves away from toxins and towards nutrients. For bacteria, such behavioural response is the key to survival. Humans have minds, in addition to bodies, although both serve the same purpose -- a purpose shared by every species on earth, i.e. survival and well- being. Products and services, in essence, serve the purpose of mind/body by enhancing the survival (physical, psychological and social) and the quality of survival. No wonder advertising is more and more focused on the quality of life that products bring to consumers’ lives rather than their functional attributes.<br />
			The question of mind-body has intrigued many great philosophers and scientists. While the eastern civilization had long understood the connection between mind and body, it took a long time for the West to grasp this knowledge. An increasing body of scientific evidence suggests that mind (the immaterial) and body (the material) have a symbiotic relationship. What happens in the mind has outcomes on the body, and the body has a significant role in the shaping of the mind. But for many centuries, the West embraced the concept of disembodied mind (mind separate from the body; spirit separate from matter) and this had a profound impact on many disciplines including medicine, as exemplified in the way it treated diseases (by simply focusing on the body and not the mind). It would not be wrong to assume that this mind/ body problem had a great impact on the way marketers approached advertising. As a result, for a long time, marketers practiced a rationalist-materialistic approach in advertising (e.g. nice shampoo=nice hair=nice job).In the absence of proper understanding of bodily emotions and their influence on the mind, emotions were generally overlooked as an effective approach in advertising. <br />
			Emotions help us survive and survive better. If we did not have the emotion of fear, we would walk </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/car.jpg" style="margin: 0pt; padding: 0pt; width: 280px; height: 313px;" /><br />
			<br />
			freely in the middle of the highway, though not for very long.If we did not feel good or happy, we would not get into any kind of exploration; whether it was seeking a mate or having sex when we lived in the jungle or seeking scientific discoveries while we live in a civilized world. It is very difficult for an eternally sad and depressed person to engage in such explorations. Some argue that emotions are dysfunctional, but this is true only when an emotion or its intensity is inappropriate to the situation. <br />
			With the re-emergence of the integrated theory of mind/body, and the role of body (where emotions occur) and its making of the mind (where the emotions are felt and classified as painful or pleasurable etc.), emotions have received their due importance in management and, by extension, in advertising. It is worthwhile to note that beliefs are tied with emotions. And emotions can lead to new beliefs and strengthen existing beliefs. It is our emotional connect with the brands that strengthens our belief in them.Only recently has science agreed upon a broad definition of emotions and their purpose in our lives.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Mind and Brands</strong><br />
			Products exist in the outer world. Mind exists inside us. We engage our body to interact with objects (including products) and events in the outer world.<strong> </strong> However, it is our mind, in conjunction with our body, which gives meaning to those products.<br />
			In other words, mind and products come together to make a brand. Products, or for that matter, any external objects or events, do not have much intrinsic qualities of their own. Products are generally neither good, nor bad; neither black nor white; neither beautiful nor ugly. And when they are made under the statutory quality standards, they are neither superior nor inferior. It is our mind that gives (or doesn’t give) products such qualities. <br />
			This is where advertising comes in. Advertising helps the mind embrace the</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			intended qualities of products through association or conditioning. When those intended qualities, through a repetitive exposure of messages (provided they are delivered in the proper way, here delivery of the message is the key) become hardwired in the brain, they become a belief. Beauty care products don’t make us more beautiful as much as they make us feel more beautiful, and so do the designer clothes and many other products. Does one nutritional drink make kids smarter or taller than others or does it make any smarter at all? No one can say for sure. Most of the scientific claims made by product advertisements are derived from correlation rather than causation. But if the consumers strongly believe (with strong emotions) that it does, then no reasoning can change their mind.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Brands and God</strong><br />
			Brands are much more than simply matter, much more than what they are made of. Belief is what lies underneath both God and brands; the only difference is the degree. And mind is the space where both God and brands are experienced. This is in no way meant to reduce God to mental states or to draw any parallel between God and brands, because God is much more powerful than any brand mankind has ever made.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			Only God can create the kind of belief that He does. However, I believe that any brand that can create a godlike belief will be the truly ultimate brand. Whether it is ever possible to do so is another question altogether. But that should not stop brands from trying. This effort is what will drive brands to continually evolve forever. (Panday is a Creative Consultant and winner of six Crity Advertising Awards)<br />
			 </div>
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	<strong>In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			Have you seen God? This is a question I have faced many times in life. As a theist, I find it difficult to answer this because I haven’t seen God. But not seeing God or rather not being able to see Him hasn’t changed my belief in Him. My inability to see God can be attributed to many reasons. Perhaps God hasn’t endowed me with senses (vision, in particular) strong enough to see Him. Perhaps God doesn’t exist in the form and shape that my senses are attuned to. Humans have the instinct to anthropomorphise objects. Everything has to be human like. We look for faces in the clouds and in cars. In marketing, we attribute human-like characteristics to products. But, God doesn’t necessarily have to be a carbon based organism governed by the laws of the cosmos.<br />
			As for science, it has a concrete theory neither about the origins of mankind and the universe, nor about the brain which builds such theories. So, for science to come to a conclusion about God would be a bit too premature. Science, especially narrow science, rejects what it doesn’t know and ignores what it doesn’t understand. For centuries, science chose to ignore the issue of emotions. And science continues to ignore the phenomenon of consciousness (i.e. awareness in the most basic sense ) because neither can it fully understand this phenomenon , nor can it explain how it works inside the brain. For the time being, let science be science and God be God. At the very core, both science and God function as one, because both seek the same purpose - survival and well-being of mankind.<br />
			For a layman like me, the questions such as the evidence of God’s existence and whether God created this universe and the species or they evolved are not worth pursuing. Even if the issue of Creation vs. Evolution is ultimately resolved, it will not be the end of God or Science. Both will continue playing significant roles in our lives as long as we continue being an existence made of mind and matter. So, instead of the big questions, what I prefer to be asked is whether I believe in God or not? To that, my answer will always be a resounding YES. I do believe that God does exist.<br />
			Belief, in itself, is nothing less than a miracle. Belief is healing, not only psychologically but also physically. Belief in God gives us the strength to follow a moral path. Belief is empowering. Belief is comforting. In times of crisis, belief in God has helped many, including me, maintain sanity in life.And my belief is not only limited to God; it extends to scientists and even brands, whose cause I champion. If I did not believe in scientists who said that Earth will not collide with other planets soon, at least not during my lifetime,<br />
			 </div>
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		<div align="justify">
			<img alt="" height="454" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/pic-ss.jpg" style="margin: 0pt; padding: 0pt;" width="280" /> <br />
			&nbsp;then I would have ceased to exist long ago as a result of anxiety disorder. In fact, most of the scientific truths are simply beliefs for the vast majority of people.<br />
			For most of us, the existence of atoms, quarks or strings are beliefs and not scientific truths because by definition we ought to have observed them empirically in order to account them as scientific truths. But common sense dictates that it is best to leave science to scientists, even if they come up with a new theory every now and then.<br />
			Let me clarify that this discussion is neither about God nor about science, and it is certainly not against the non-believers. They are as much right in their (dis-) belief as I am in my belief. This article is mainly about belief because this is what makes a brand out of a product. In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.Medical science presents a classic example of the power of belief -- the placebo effect, where patients get better by ingesting a sugar pill, while they believe (falsely) that they are getting medicine. This is what some scientists call the belief effect. In one study, a psychology professor at the University of Connecticut found that ‘eighty percent of the effect of antidepressants, as measured in clinical trials, could be attributed to the placebo effect.’ This is the power of belief.</div>
	</div>
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</div>
<p>
	 </p>
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	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Bijaya Nath Bhattarai.jpg" style="width: 153px; height: 173px;" vspace="2" />Bijaya Nath Bhattarai</b></div>
<div style="text-align: justify;">
	Former Governor, Nepal Rastra Bank</div>
<div style="text-align: justify;">
	The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the monetary aspect of federal Nepal?</strong></div>
<div style="text-align: justify;">
	Nepal Rastra Bank (NRB) is the authority for all monetary issues in Nepal. NRB has its branches and sub branches spread all over the country. It not only works as a fiscal agent but also facilitates commercial banks through operating currency chests. It regulates the money supply, flow of liquidity and supervises and regulates banks and financial institutions. In the federal structure too, the currency in use will be the same and there will be a solitary central bank which will be responsible for providing all central banking functions to every state in the country. There won’t be separate currencies for individual states. But all monetary issues should be controlled by a central regulator i.e. Nepal Rastra Bank.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>In a federal structure, the state revenue, expenditure and debts will have to be shared between central and local governments. How practically feasible will this be for Nepal?</strong></div>
<div style="text-align: justify;">
	As far as I know, the countries with federal structure have different forms of taxation. Some are levied by the central government while some others are at the states and municipal levels. There are three types of taxation. The municipal taxes would be the income of the particular municipality. Similarly, state taxes would be the revenue of the states. The policy to distribute central taxes according to an agreed formula should be adopted. This will be the most complicated negotiation among the states and the centre. Based on the policy of distribution, taxes mobilised by the central government would be divided among the states. It must be noted that in Nepal, 60 to 65 per cent of economic activities are centred in the Kathmandu Valley. Then come the Terai hubs namely Bhairahawa, Biratnagar, Birgunj and Nepalgunj followed by towns like Pokhara and Hetauda. The economic activities in other areas are minimal. Therefore, resource mobilisation and sharing will be difficult proposition for federal Nepal. On the question of debt management, there needs to be an agreement on issuance of debt, use of debt and final repayment of debt. Most of the country’s debt issuance and repayment is at the central government level.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The rising recurrent cost is already eating up the country’s revenue generation capacity. With governments at the provincial levels, the overall administrative and recurrent public expenditure is likely to shoot up with no commensurate growth in revenue. Wouldn’t this be an alarming situation?</strong></div>
<div style="text-align: justify;">
	Resources remaining after fulfilling the recurrent expenditure are used in development activities. This is supplemented by the resources and means obtained from foreign aid and loans for development activities. The resources thus mobilised would be further divided in the federal system. Then there would be chances for even less resources and means left for development projects. The revenue grows along with the economic development of the country. If the country under federal system moves ahead and develops economically, the national income will grow. We can take Switzerland as an example where the per capita income is around US$ 34,000. But our country’s situation is such that federal structure can actually lead to resource crunch. The far western region, especially Karnali, is least developed. There are other under developed regions too where the conflict had escalated due to unequal distribution of income and resources. In such areas, the resources injected have to be comparatively higher. This would leave very little resources at the centre’s disposal. It would be ideal to have a small number of states and small state structures. Only then will we be able to mobilise resources effectively. At present, I see a faint possibility of introducing new forms of taxation for increasing resources. During the past decade or so, there have been very few new investments. Even now, the investment environment is gloomy for domestic as well as foreign investors. Foreign aid and internal resources mobilised by the state have not been effectively utilised. As a result, there is a liquidity crisis in the financial sector. The government has not been able to address budgetary issues well. There is fiscal imprudence which is reflected by large non-budgetary expense at the central level. It will be necessary to maintain strict fiscal discipline in a federal system. The non-budgetary expense has to be lowered to a minimum. If we can do that and utilise resources effectively for development, the situation may improve over the years as the economy will then grow. However, the current resource distribution pattern could invite complications.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>How can we decrease current expenses so that more resources can be allocated in development activities?</strong></div>
<div style="text-align: justify;">
	We have very limited resources. So, when we want to divide them among the centre and the states, there could be complications. While making a transition to the federal structure, we should make sure that the structure envisioned by the constitution is small and dynamic. For example, there are more than 600 representatives in our existing Constituent Assembly. This number is massive given the size of our country. Compare this figure with our neighbouring country India which has 552 members in its lower house of parliament. It is said that our federal parliament will follow a bicameral system, for greater representation of every region. The number of representatives should be brought down significantly from the present one to ensure low governance costs. Also the size of the provincial government must be small and effective. If this is not ensured, very little resources would be left for development activities after dividing them among central and regional governments.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>There has been no real debate on the economics of Nepal’s federal structure. Given this, how can we be definite about the direction we are heading?</strong></div>
<div style="text-align: justify;">
	I agree that there must be a serious debate on this issue. The statesmen and the CA too have not discussed fiscal federalism seriously. Major issues such as the availability of resources and means and the model of federal structure must be discussed now. I personally feel that without serious debates, going for federalism might backfire on the country in the long run. Nepal has limited resources. Therefore, the demarcation of states based on ethnicity could prove to be a dangerous proposition. It will definitely promote ethnic conflict among our own people. And we definitely don’t want Nepal to follow the example of Yugoslavia. The states must be divided based on economic reality.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What reforms do you think are required once we go federal?</strong></div>
<div style="text-align: justify;">
	Well, there are a lot of things that need to be reformed. Our GDP and tax ratio are lower compared to many countries. We can look at increasing tax compliance. In the recent past, media has reported tax evasion by big business houses. All citizens must feel that paying taxes is their duty and it should not be evaded. Greater tax generation will enable the state to mobilise adequate resources for development and social causes. Nepal has started providing social security allowances for elderly people. In the coming days, the state can offer free medicines and health services to the economically deprived people. For that, a sense of responsibility in people must develop to ensure tax compliance. If the government can take the role of a facilitator and focus its investment in infrastructure, Nepal can experience a prosperous economic development. The problems that we face today are that of infrastructure, labour relations and power. As per reports, around 200 small industries have closed shop owing to power shortage. Similarly, many industries have experienced decline in output due to labour unrest. The political parties must unite for national and development issues irrespective of their ideological differences.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Being one of the poorest countries in the world where there is little revenue left for development after incurring current expenditures, can we afford a federal form of government?</strong></div>
<p style="text-align: justify;">
	If we see economically, it is very difficult due to the resource constraints. As and when we enter the federal structure, it will be necessary to differentiate federal and state taxes. Let’s take the example of the USA where the sales taxes are collected by the states. Similarly, the municipal and income taxes are collected, respectively, by the municipalities and the federal government. Our main sources of revenue are VAT, customs duties and income tax. The land tax, rental tax and other smaller taxes are collected by the municipalities. I think the problem in Nepal arises due to centralisation. The rights must be decentralised. If small structure and decentralisation of rights can be ensured, there is no need to create new states in the name of federalism. There are districts where there have been no economic and development activities. We have seen in the past also that the situation of conflict was invited by economic inequality. This inequality is due to the imbalance in economic opportunities for different regions and the failure of implementing economic development plans. The mid western and far western regions are the most backward regions of the country. Despite huge potential, Karnali region remains grossly underdeveloped. If the planners in the past had successfully taken the decentralising path, the people wouldn’t have been left dissatisfied. This happened due to huge economic disparity between the various regions. An economically decentralised country holds more promise than a&nbsp; federal structure.</p>',
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		'Article' => array(
			'id' => '268',
			'article_category_id' => '40',
			'title' => '‘Development In One Region Should Complement Development In Another’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Pitamber Sharma.jpg" style="width: 163px; height: 182px;" vspace="2" />Dr Pitamber Sharma</b></div>
<div style="text-align: justify;">
	Geographer and Regional Planner</div>
<div style="text-align: justify;">
	There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>The interim constitution says that the states, once created, must be autonomous. To ensure such autonomy also in the economic field, the states must have ample resources. How do you see the feasibility of such economic autonomy of the proposed states?</strong></div>
<div style="text-align: justify;">
	Being self-reliant will depend on the number of states and the criteria on which they will be created. In Nepal, autonomy is interpreted only in the political sense. It is often forgotten that political autonomy remains circumscribed in the lack of economic autonomy. If a state or province has to rely on the centre for all its development needs, how can it exercise autonomy in political or economic decision-making? All states may not have all the resources. However, care should be taken that each state is carved, as much as possible, in a way that it has at least some basic resources to complement its development efforts. There are 14 states proposed by the Constituent Assembly’s state restructuring committee. Many of these proposed states are simply not viable economically or politically. I believe that in Nepal we still have enough scope to design states as planning units. The foresight we show today will make it easier to deal with the problems of tomorrow.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What would be the appropriate geographical delineation for distribution of natural resources among the new states?</strong></div>
<div style="text-align: justify;">
	Nepal is a country with enormous geographical and topographical diversity. This diversity in many ways has determined the type and distribution of natural resources. The Terai plain as well as the Inner Terai are rich in agricultural resources. This area also has a unique wildlife. Similarly, the hills and mountains are rich in biodiversity resources, hydro power, nature- and culture-based tourism resources etc. The element that links and complements the geographical diversity between the hills and the plains is the hydrological system – the major river basins of Nepal. There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources. However, we do not live in an ideal world. While natural resource endowment is important, equally important are the historic aspirations of the diverse communities that inhabit the different regions. These aspirations also need to be addressed in the formation of states. Nepal’s move from a unitary state to a federal one is dictated in many ways by these aspirations.<span>&nbsp;&nbsp; <br />
	<br />
	</span></div>
<div style="text-align: justify;">
	In a country like Nepal, the crux of the issue of federalisation is that the development in one geographical and resource region has to complement the development of another region. That is the basis on which the resources need to be considered in designing federal states.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Some political parties are strongly raising the demand for states based on ethnicities. How challenging will it be to manage and distribute the resources along these lines instead of geography- and resource-based states?</strong></div>
<div style="text-align: justify;">
	The political discourse on federalisation in Nepal has been dominated primarily by the issue of ethnicity. Not much attention has been paid to the attributes of an ethnic state, or even what comprises an ethnic state. Some people are scared of the word ethnicity altogether. The reality is that ethnicity makes a significant difference in the lives of people.&nbsp;Nepal has 100 designated ethnic groups according to the 2001 census. And there are 92 languages spoken in the country. Major ethnic/caste groups in Nepal have their territories of traditional habitation. The groups have settled continuously, are relatively concentrated, and have a significant and dominant, if not majority presence in particular areas. This is true for all large and small aadibasi and janajati groups and the Chhetris. However, the dalits do not have their own distinguished geographical territory or a separate identity by virtue of language.&nbsp;This is in spite of the fact that they comprise the third largest ethnic/caste group and the most marginalised population in Nepal.<br />
	 </div>
<div style="text-align: justify;">
	If all major ethnic groups in Nepal were to have their own states, it would be an enormous challenge to manage and distribute natural resources. Ethnic boundaries rarely coincide with resource boundaries. Even macro watershed would be divided among different ethnic domains. All hydropower resources would be in the domain of hill/mountain ethnic groups, with none in the Terai. The capacity of ethnic states to deal with the issues of mitigation and adaptation to climate change would be extremely limited. It is because this would require a coordinated watershed level response.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you think that the redistribution of resources may ignite resource conflict after the formation of new federal states?</strong></div>
<div style="text-align: justify;">
	As I have mentioned earlier, much would depend on the criteria used in the designation of states, and of course the number of states created. The experience of other countries show that conflicts over control, regulation, use, benefit and maintenance of resources, particularly water, are among the common conflicts resulting from federalisation. Constitutional provisions are therefore made for arbitration and resolution of such conflicts. (Highlight.) The redistribution of resources is ensured mainly through inter-governmental transfers. However, to assure that the central government has enough resources to offset imbalances between the states, some clarity is required with respect to the share of local/state revenue going to the central treasury.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, you think the 14 states proposed by the CA’s State Restructuring Committee is not practical?</strong></div>
<div style="text-align: justify;">
	The idea of 14 states proposed in the draft report of the Constituent Assembly’s State Restructuring Committee, in my view, is neither rational nor appropriate. For a country of Nepal’s size, 14 states will be too many.&nbsp;If ethnicity is the only criteria considered for the designation of states, I see no justification for at least four of the proposed states.&nbsp;Jadan has a population of 50,000 while Bhotes comprise only 1.2 per cent of Nepal’s population. Sherpas total only 90,000 people and a mere 21 percent of Nepal’s total Sherpa population live in the proposed state. Additionally, Sunkoshi and Narayani have as mixed a population as any other ethnic state. One of the major problems with the report is that it does not lay down any principles for states’ formation. For example, when does an ethnic group merit the status of a state as opposed to an autonomous region within a state?<span>&nbsp;&nbsp; The report does not provide answers to these kinds of questions.</span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Running and maintaining the state affairs is a costly proposition. How would the states help in mobilising resources for the nation while meeting their own recurring costs?</strong></div>
<div style="text-align: justify;">
	At present, only nine among the 75 districts are in a position to generate revenues that go beyond meeting their recurrent expenditures. In other words, if all the proposed states of Nepal are to be in a position of meeting their recurrent expenditures and generate a surplus, it is basically from the revenue from these nine districts that will have to be somehow apportioned among the states. As I said earlier, inter-governmental transfers will have to play the key role in maintaining the financial viability of the states. Inter-governmental transfers should ensure that (a) all expenditure assignments of the states can be met through these grants and (b) that it should also provide the basis for basic long-term investments required for mobilising resources. In Nepal’s case, for example, the states falling under the current mid and far-western regions will need massive investments from the centre for at least 10 to 15 years, by which time they could be self-sustaining. Investments by the centre on key infrastructures in the state will remain crucial. One of the problems that the state governments in poorer states will have to face is the flight of capital as capital flies out from low-yielding states to high-yielding states. A situation can easily arise where the poor states become poorer while the rich ones become richer. This will emerge as a big challenge in the management of federalism. The success of the federalism enterprise may as well lie in the extent to which they are enabled to mobilise resources.&nbsp;</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What may the reason that there is no meaningful debate taking place on state restructuring and the form of federal system?</strong></div>
<div style="text-align: justify;">
	The political parties are ignoring the most critical and operational issues of federalism. It was Maoists who raised the issue of the federal republic and turned it into a national agenda, and they did it right. The rationale for the federal republic was to break, once and for all, the shackles of a feudal, overtly centralised, monarchic, predatory state. This was a historic achievement. For the first time in nearly two-and-a-half centuries, it set the stage for redefining and reimagining Nepal. But the Maoist perception went astray because of taking ethnicity as the sole basis for federalisation. As a result, the question of resources, development and meaningful devolution of power remained ignored. The two other major political parties – the UML and the Nepali Congress – are still taking time to fully own the idea of a federal Nepal.&nbsp;It is evident from their reactive approach to the whole issue, so much so that their official positions are not yet clear. The Madhes based political parties too made the federal agenda their main political plank. But they only took it as far as it challenged the colonial flavour of the policies of the hill-centred Nepali state vis-a-vis the Madhes. The ‘one Madhes, one state’ slogan was raised as a vehicle for economically circumscribing the hills and making it a hostage of the Madhes, however defined. The ethnic dimension is critical and important but no less important is the issue of dealing with poverty, exclusion, and in a fundamental sense, the mode and meaning of development. The two issues are no doubt linked but one cannot be a substitute for the other.<br />
	 </div>
<div style="text-align: justify;">
	Thus the debate has centred on issues of identity and emotion rather than the more substantive issues of strategy and resources for development. I believe that once the dust settles and the states come into being, development will once again emerge as the agenda around which politics will revolve.<span>&nbsp;&nbsp; </span></div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>What should be the main objective of federalism in Nepal’s context?</strong></div>
<div style="text-align: justify;">
	The objective of federalism in Nepal should be the creation of a prosperous country which will benefit all, irrespective of ethnicity, caste or class. The rational for federalism in Nepal has to rest on three premises. The first is the recognition of the ethnic, linguistic, cultural and regional identity and aspirations of the diverse population groups that inhabit Nepal. For over two centuries, the Nepali speaking, upper caste hill dwellers following the Hindu faith namely Bahun and Chhetri enjoyed the privileged patronage of the Nepali state.&nbsp;Shared ownership of the state requires that progressive ethnic, cultural and regional identities are given due recognition. The second is to facilitate rapid, equitable and inclusive development so that livelihoods of all, and particularly of the vulnerable, marginalised and disadvantaged groups, can be rapidly improved. This requires that adequate attention is paid to natural and human resources that can provide the basis for equitable and inclusive development. The third is to decentralise and devolve power to the lowest possible level so that the roots of a truly participatory and accountable democracy are strengthened.</div>
<p style="text-align: justify;">
	Two concepts, I believe, can help us move towards a federalisation that takes identity, inclusive development and devolution as the point of departure.&nbsp;The first is the concept of ethnic/caste groups that have suffered from historic discrimination and have a dominant presence in geographically adjacent and contiguous areas. The second is the concept of special autonomous areas. Following the first concept, federal units can be formed around a few major ethnic/caste/language group habitats that have historically remained in adjacent or contiguous areas, and have developed a sense of ethnic affinity over time. Such federal units can incorporate areas with existing or potentially sustainable natural resource as well as economic base. Following the second concept, special autonomous areas can be designated within federal units with particular ethnic/caste dominance.</p>',
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			'description' => 'There are hydrological, demographic (migration) and economic (trade) linkages between the highlands and the lowlands. Ideally speaking, the most appropriate geographical delineation of states – which takes into account the distribution of natural resources – would be the one that follows the river basins because this would allow the complementary development of unique resources.....',
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		'Article' => array(
			'id' => '267',
			'article_category_id' => '40',
			'title' => '‘Political Parties Must Honour The Constitutional Provision And Form State Restructuring Committee',
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			'content' => '<div style="text-align: justify;">
	<b><img align="left" alt="" border="2" hspace="2" src="http://newbusinessage.com/ckfinder/userfiles/Images/Dr Prakash Chandra Lohani.jpg" style="width: 162px; height: 180px;" vspace="2" />Dr Prakash Chandra Lohani</b></div>
<div style="text-align: justify;">
	Former Foreign and Finance Minister and Co-Chairman of Rastriya Janashakti Party</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it.<br />
	 </div>
<div style="text-align: justify;">
	<strong>The state restructuring committee has not been formed yet. What are the reasons behind it?</strong></div>
<div style="text-align: justify;">
	It is clearly specified in the interim constitution that we should have a state restructuring committee. So, it is the responsibility of the government as well as of the political parties to ensure that the state restructuring committee is formed. The government as well as the major political parties have not fulfilled this responsibility. In fact, the state restructuring committee should have been formed while the Constituent Assembly was in its first session. The fact that this has not been done as yet is a reminder of our negligence towards the constitutional provision. I think when Pushpa Kamal Dahal was the prime minister, he tried to form it. He nominated Dr Ganesh Gurung to head it but the parties concerned were not able to agree with the names of other members. So, the body formed with Dr Gurung as its head did not take the full shape. It became a one-man defunct body. After Dahal left, Madhav Kumar Nepal took over the reins. At that time also, smaller parties like ours have been constantly telling the bigger parties to meet this constitutional provision.<br />
	 </div>
<div style="text-align: justify;">
	The responsibility of the state committee is to analyse the question of federalism and suggest the federal model that would be suitable for Nepal. It also has to suggest the number of states, their boundaries and so on. This is one issue which we have been raising in the parliament, i.e. the Constituent Assembly, as well as in our interactions with the bigger parties. However, they have consistently ignored it. When madhav Nepal was the Prime Minister, I don’t know if he ever tried to push this process forward. Most of the time, his government and the Maoists were at loggerheads with each other. There was no real initiative to draft the constitution. They spent their energy in the struggle for power. That is the reason why the state restructuring commission has not been formed yet. In fact, it was not an agenda of priority for the Maoists, Nepali Congress and the UML.<br />
	 </div>
<div style="text-align: justify;">
	They simply ignored this issue. Now, after the year-long extension of the Constituent Asembly, normally one would expect them to try and form this committee. However, they have ignored this again and we are now left with only two-and-a-half months from the deadline for promulgating the constitution. And still there is no seriousness about satisfying this constitutional provision. This is a sad story, to say the least. Now, the Maoists are saying that it doesn’t make any sense to form the state restructuring commission because the thematic committee working on state restructuring has already come out with its report. But what we have been saying is that this is a constitutional provision. If this provision has to be ignored, then people must prepare a proposal, make a constitutional amendment, take it to the parliament and remove this article from the constitution. As long as this article is there, we have to make sure that we honour it. I am sure this is an issue that will come up in our subcommittee meeting soon.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>So, it would not be possible to go ahead with the state restructuring without the commission’s report?</strong></div>
<div style="text-align: justify;">
	The state restructuring commission has to submit its recommendation before we make a final decision on state formation in this country and on the number and size of the provinces and many other issues related to federalism. We cannot ignore this constitutional provision. The responsibilities of the committee are to advice and provide suggestions.<br />
	 </div>
<div style="text-align: justify;">
	The constituent assembly has a right to either reject or accept them. Therefore, we must give them the opportunities as specified in the constitution. I think if we go about deciding the number of states without the commission’s recommendation that would be ignoring the provision of the constitution. It would neither be proper or correct nor acceptable.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Why has there been no meaningful debate held so far for state restructuring?</strong></div>
<div style="text-align: justify;">
	It’s because different political parties have different propositions. Their formal proposition is different from what they say in informal interactions. This is also the part of the problem. I think if we have a state restructuring committee, it would help solve some of these contradictions. There has not been serious debate among the political parties primarily because the three major political parties have not given attention to this issue. They are involved in power struggle all the time and busy speculating on who would be the next prime minister. In a way, it is their sense of irresponsibility and negligence towards the commitment made to the people when the constituent assembly elections were held.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Which model of fiscal federalism would be most appropriate for Nepal?</strong></div>
<div style="text-align: justify;">
	It is the question of devolution of authority. One of the more important aspects of this is the financial authority. Till now, Nepal has been a centralised state. Most of the resources are collected by the central government. Now, we want to make sure that we devolve fiscal authority to states and also to the village development committees (VDC) so that they can raise resources on their own. I personally think that if the central government raises 60 per cent resources, remaining 40 per cent would be raised by the local government bodies, states and the VDCs.&nbsp;We have to work along the line of fixing such a ratio. I think 60:40 ratio would be quite logical.</div>
<div style="text-align: justify;">
	 </div>
<div style="text-align: justify;">
	<strong>Do you see the danger of improper distribution of revenue in federal Nepal as the source of revenue would not be uniform in all the states?</strong></div>
<div style="text-align: justify;">
	I think we also need a financially strong central government. This is because, inevitably, some provinces are going to be financially weak. They may have the resources but these are largely unexploited. For example, in the hilly areas, hydro resources are there but it will take time to exploit them.In the mean time, we will have to find a way to compensate them for the lack of resources. That needs transfers from the central government.</div>
<div style="text-align: justify;">
	It will work out depending on population, human development index and so many other relevant variables. We have to give a sense of equity and justice to people in all the provinces of this country.</div>
<div style="text-align: justify;">
	 </div>
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	<strong>The idea of ethnicity based federal structure has courted big controversy. How does ethinicity-based federal structure fare in terms of fiscal federalism?</strong></div>
<div style="text-align: justify;">
	There is a big controversy on this issue. No doubt about that. Different political parties have recommended number of provinces varying from seven to 14. One of the remarkable things is that no particular ethnic group is in the majority in their proposed respective states. Take the case of Limbuwan, for example. In Limbuwan, you have a total of 30 to 35 per cent Rais and Limbus if you combine both the communities. The rest 60 to 70 per cent are non-Limbus. Therefore, to go ahead with the idea of ethnic states, in a way, might alienate the other majority population and may create ground for conflict.<br />
	 </div>
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	The important thing is representation in the provincial and national parliament in line with the ethnic distribution. We have to assure and be clear on that point. Once you achieve that, I don’t think we should stress too much about this ethnic issue. People want representation in the power structure. And that representation must reflect the underlying distribution of the ethnic population. Once there is the electoral system, it makes sure that the ethnic representation is there in line with their ethnic distribution of population in the country. I think it would solve a lot of problems. Once you move in this direction, emphasis on ethnicity alone is going to wield less importance.</div>',
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	Small sized loan sans collateral, group savings, small-scale entrepreneurs,&nbsp; diversified utilisation and simple and flexible terms on credit are among the features of micro-finance companies. </p>',
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			'title' => '‘Gemstones More Important Than Hydro And Herbs’',
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	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Hari Bhakta Upadhyay Adhikari</span></b></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Gemstone Expert</span></span></span></p>
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	<span style="font-size: 16px;"><span style="letter-spacing: -0.1pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with.</span> <br />
	</span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Being a civil engineer, what attracted you towards gemstones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In my 25 years long career with the government, I reached a lot of places in Nepal. I was interested in herbs too. Working as an engineer, I also went on gathering information on gemstones of Nepal. With a technical background, it was easier for me to understand them. After I took up voluntary retirement from government job in 1991, I began intensive study on gemstones. I studied a lot of literatures on gemstones. Based on my study of 18 years, I have written two volumes of a book on gemstones named ‘Nepal Ratna’. These books are helpful to gain knowledge on precious stones.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Where did you find the major concentration of such stones?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">In Kaligandaki river, ruby, sapphire, tourmaline and jasper are available. Trishuli river is a treasure house of Topaz. Madi, Phidim and Karnali rivers have garnet. Narayani, Trishuli and Mahakali rivers have kyanite, quartz and jasper. Taplejung, Manang, Sankhuwasabha, Bhojpur, Jajarkot, Achham, Bardiya, Kalikot, Lamjung and Dhankuta have emerald, ruby, sapphire, beryl and other precious stone. Similarly, corundum, topaz, quartz, garnet, aquamarine, opal, jade, moonstone are found in Nepali mountains from east to west. In Ganesh Himal, I had found a mountain of ruby.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">You ‘had’ found a mountain of ruby. Isn’t it there now?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Nepal Metal Company was established in 1976 with Hyderabad Industries Limited, Government of Nepal and ordinary Nepali people as shareholders.&nbsp; After Nepal Government and the Indian company, the largest shareholder was Mohan Gopal Khetan and he was very influential in the company. I too had some shares. At the 14th annual general meeting of the company in 1995, I raised a strong voice that the ruby extracted from Ganesh Himal was being exported without authorisation. The meeting formed a seven member investigation committee with me as its head. But none of the members agreed to go to Ganesh Himal with me to investigate. Later I found that someone had told them that Mohan Gopal Khetan might cause them great harm. So, I too did not go there at that time. Later in 1996 when I went there, the hillock that I had identified earlier as the deposit of ruby was blasted out. The mound of 15 metre width and eight metre height was estimated to contain 19 metric tonnes of ruby. However, though the ruby from the hill was taken away like that, there still is a very high potential of ruby deposit in the 60 hectares area around that destroyed hill.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What would be the value of the ruby there? </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Ruby now is priced at Rs 17,000 per carat. Five carats make one gram. So one gram is worth Rs 85,000. That means, the 19 tonnes of ruby converted into money at today’s price would be sufficient to meet the government budget of Nepal for 500 years at today’s budget size. The then royal palace played major role in taking out rubies from there.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Despite such immense availability of gemstones, why is nothing being done?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">There is utter lack of human resource with good knowledge of gemstones. Even the department of mines under the government does not have a gemstone expert. There are no academic courses in this field so there is no possibility of gemstone experts being developed for the future. The government must do something urgently in this.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What have you done personally towards it?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">After I began studying gemstones, I felt the serious lack of human resource. Then at my own cost, I established Gemstone Research and Training Centre and began providing trainings. But, now I have discontinued it due to the power outage. Till now I have trained 80 persons on identifying gemstones, cutting and polishing them, cutting with the use of modern machines for export quality finish, carving hole with the ultrasonic drill machine and identifying and certifying the stones. I have been providing trainings too going to different offices under the Department of Cottage and Small Industries. And I have also designed a training course to be given by the Department on finishing gemstones.&nbsp; </span><span lang="EN-GB"><br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What are your trainees doing now?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Some are running their own businesses. Some others are working in this sector at Thamel and in Bhaktapur and Surkhet.&nbsp; But most of them are not in this field. Due to the lack of capital, they have not been able to mine the stones and run factories to process them.&nbsp; <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What about government licensed gemstone exploration or mining?</span></span></strong></p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">&nbsp;There are very few people who are in gemstone mining with government license.&nbsp; Most of the mines are illegal. I have heard that tonnes of raw gemstones are exported every month to Jaipur in India.&nbsp; Nepali ruby, sapphire, tourmaline and aquamarine are exported to Japan, Germany, America, Singapore, Switzerland, Belgium, Sri Lanka and South Africa. But I have not come to know anyone who holds a license to mine ruby, sapphire and aquamarine. Quartz is mined at Dhading, Gorkha, Rasuwa, Darchula, Bajhang and Sindhupalchowk. Similarly, aquamarine is collected from Taplejung and Rasuwa while Tourmaline is collected from Manang and Jajarkot. Garnet is mined from Sankhuwasabha and Ruby and Quartz from Dhading.&nbsp; These stones are mined without license and exported. The government has failed to see that.</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">Didn’t you talk to the government for cooperation on locating and mining the gemstone deposits?</span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">I talked to Sahana Pradhan and Hridayesh Tripathi when they were Ministers of Industry but they declined the request citing the lack of budget. I have talked to the Department of Mines and Geology time and again. But nobody cares. In fact the Department does not have experts. So I am focused on producing qualified human resource.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">What do you suggest as the most important thing to do in this field?&nbsp; </span></span></strong></p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: -0.15pt;">Without technical knowledge, it is impossible to go ahead in this. There should be academic courses in the universities on gemstones. The students should be provided with technical and theoretical knowledge. Training centres should be set up in the East, West and Kathmandu. For that, a budget of Rs 50 million would be sufficient to begin with. I am 81 years old now. I wish to see three training centres coming into operation within my lifetime. If that happens, hundreds of thousands of Nepalis would get employed and Nepal’s economy would turn around.</span><span lang="EN-GB"> <br />
	</span></span></p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB">How do you see the future of gemstones in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">Water resource helps the economy in an indirect way. The electricity generated from water should be first used to run factories and produce goods which can then be exported to get the money. But, gemstones can be sold straight from the mine. Nothing is being done in Nepal in this sector. I believe the kyanite (aluminium silicate) deposit of Nepal can meet the aluminium demand of the entire world. Similarly, gemstone kyanite costs US $ 1500 a gram. A truck full of such kyanite is illegally taken to India every month. The Customs Department and the police do not know about its value and usage as they are ignorant about the precious stones. The illegal mining and export must be stopped. If the government involves the private sector in this field, it can contribute more than hydro and herb resources do to the economy. </span><br />
	</span></p>',
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<p style="text-align: justify;">
	<span style="font-size: 16px;"><span style="color: rgb(178, 34, 34);"><b><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Krishna Prasad Kafle</span></b><br />
	</span></span></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: 120%; vertical-align: middle; text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 120%;">Mines Expert &amp;</span></span></span></p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="color: rgb(178, 34, 34);"><span style="font-size: 16px;"><span myriad="" pro="" sans-serif="" style="line-height: 115%;">Former Superintendent Geologist, Department of Mines and Geology</span></span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="text-align: justify;">
	<span style="font-size: 16px;">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash on this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. <strong><br />
	</strong></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the situation of the mineral resources in Nepal?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">During the Rana period, minerals like iron, copper, cobalt, lead, zinc were mined in different places. It was a compulsion to operate these mines as there was no other way to get such minerals in Nepal. Charcoal was used as the fuel to heat the ore to extract iron and copper from the ore. Such metals were used for making household utensils and farm implements. Iron extracted from Thoshey mine of today’s Ramechhap district was used for making gun barrels by the then government. Historical records show that nine barrels were produced in a day. The remains of the factory and traces of mine excavation can still be found there. Similarly copper and lead were mined in Baglung, Gulmi and Myagdi, and cobalt was mined in Arghakhanchi and Gulmi. Copper is available in many places. Copper mines of Marma, Khandeshwori and Siddhi Khani in the eastern Nepal are some of the well-known ones. In Myagdi and Baglung a lot of work was done on mining. Bhainse and Pandav mines in Myagdi district are a few examples. However, they were all in small scale. The studies in the course of 50 years by the Department of Mines and Geology have identified various minerals found in Nepal. Among them, some may not be viable to mine commercially at present but have possibility in the future when the price of such minerals may increase. As more studies are conducted and technology becomes cheaper, we may go ahead with excavation for such minerals.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What have these studies found about the estimated size of mineral deposits in Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The deposit size differs for different minerals. If you look at the iron mine of Fulchowki of Lalitpur, it is around 10 million tonnes. Similarly Thoshey mine has around 16 million tonnes of iron as per the estimate by the Department which is supported also by the study made by a new mining company interested in this mine. The Department has located lead, zinc, copper in different places. In non-metallic segment, limestone, used as basic raw material for cement industry, is found in huge quantity. A deposit of 1.25 billion tonnes of limestone has been proved and places have been identified with probable deposit of 1.50 billion tonnes. Based on these data, 29 licences have been issued for limestone excavation and 196 licenses for limestone exploration. Hetauda Cement, Udayapur Cement, Himal Cement and Annapurna Cement are the examples of the cement factories that are utilising the Nepali limestone.&nbsp; Now additional cement factories are set up or are being set up in Dang, Salyan and Rolpa utilising the limestone mines there. In Arghakhanchi, Dynasty Cement Company is already in operation. In Udayapur and Hetauda, new factories based on Nepali limestone mines are coming up. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Now many cement factories are using clinker imported from India. Currently 40 to 50 per cent of Nepal’s cement demand is supplied by local factories. As the new infrastructures are being set up in the country, the demand for cement is going up in the similar speed. So, cement industry have good prospects in Nepal. This increased demand can be met by cement produced in Nepal with Nepali limestone. Thus Nepal can be self-reliant on cement with the available limestone deposit.&nbsp; Gypsum is the other mineral required for cement production. Though that is not found in a large quantity so far, there is possibility to find it. Explorations and studies must be continued. Other minerals required for cement industry are coal and iron. Both of them are available in Nepal. If government issues licence and no local problems arise, Thoshey mine can supply the iron to Nepali cement industry. Gypsum can be imported from Bhutan and India. There is possibility to find it in the area around Pyuthan, Dailekh and Surkhet.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Then why could not Nepal cash in this wealth so far? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">We are lucky to have so much mineral deposits in such a small territory. But we have failed to cash in this wealth because this sector failed to receive the government priority and attention. And as a result, the private investors were not attracted to it. Perhaps it can be attributed to the failure of the Department to give the required publicity about the mineral potentials of the country. The government has issued 451 licences for exploration of minerals and 80 more licenses are issued for excavation. Recently, the awareness about the importance of this sector is growing.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">People say that though the types of minerals found in Nepal is very large, the size of the deposits are so small that it is not economical to mine them. What is the exact situation? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">When we were studying a copper mine in Dadeldhura, we found gold, copper, tungsten, nickel, molybdenum, bismuth and even cobalt from the same mine. It is a poly-metal sulphide deposit which can be used as multi mineral mine.&nbsp; The tendency is such that we look for a certain mineral and when we notice that the deposit size of that mineral is not economical, we leave that site without trying to explore about the presence of any other mineral there. There was a UNDP project conducted to explore minerals in Nepal and that too concentrated only on copper, lead and zinc, which are called base metals. If the project had explored for other minerals as well on the same mines that would have yielded significant benefits. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Places like Myagdi, Baglung, Parbat, Gorkha, Solukhumbu and Ilam have mineral deposits. Gemstones are available in Sankhuwasabha, Dhading, Rasuwa, Jajarkot, etc. Different places are suitable for different minerals. The minerals are scattered all over, from the mountains to the Terai. We have failed to make a commercial use of them. Had we utilised them in time, we would have made tremendous economic progress already. For example, the best high-grade magnesite deposit of South Asia is in Dolakha district. But unfortunately we failed to excavate it on time and take it to the market. With scientific advancements, even the medium grade magnesite has now become as good as the high-grade. As we don’t have internal market for dead burnt magnetite bricks, we have to export it to other countries where such bricks are used in industrial units that have high temperature furnaces. Such bricks can resist up to 2300<sup>0</sup> Celsius temperature while normal bricks can’t resist more than 700<sup>0</sup> Celsius. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What about other minerals such as gold? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The gold deposit in Nepali mines is very small. However, gold is priced very high. Therefore, though the quality of gold that can be mined in Nepal may be small, its value is high. Therefore, even if the deposit of this mineral is small, it can be economically beneficial to mine. Our rivers like Karnali, Chamelia, Seti, Bheri, Budhi Gandaki, Marsayangdi and Kali Gandaki have gold in their sands. Local fishermen search for gold ore in these rivers and sell it in the market. Such ores have 60 to 99 per cent of gold. Precious metals and precious stones like ruby, sapphire, tourmaline, aquamarine are highly priced. Therefore, though they may be in small quantity, their value is high and it is economical to mine them. Metals like gold, iron, copper and zinc have their own value. They are found in Nepal and have a good market.&nbsp; But in the absence of proper mining, most of them are wasted. The local people have a tendency to blast the mine. By doing so, some quantity is extracted, but the big pieces of the stones get destroyed in this process. They are doing so because they don’t know the proper method of mining. If they hire an engineer to help them mine it properly, it can give them better results. We have mines from small to medium size. We don’t have mines as big as the ones in Australia, China and Canada. In non-metallic segment, we have big limestone deposits.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of possibilities you see for the contribution of mines and minerals sector to the economy?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">At present, the contribution of mines and minerals to the country’s GDP is estimated at around 0.4 per cent. This goes up to 2.4 percent if we consider mineral-based industries as well. If we utilise our resources properly, we can increase this to 15 per cent within a decade. This is only by utilising the identified mineral locations. If new ones can be found, the benefit will surely go up.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What do you suggest to address the environmental issues that crop up with mineral exploration? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">That reminds of Godavari Marbles. The company was doing well.&nbsp; It had market in Bangladesh and India. But the locals and environmental activists did not allow the mine to function properly. You cannot take out the minerals without digging up which may damage the environment. However, there are ways to minimise the damage. Moreover, though the environment is damaged when the digging is going on, the location can be rehabilitated and the damage replenished once the digging is completed. The mine can be rehabilitated by tree plantation, herbs farming, horticulture or building a resort. In some cases, it is possible to do the entire exploration as well as processing under the ground so that the noise and dust pollution can be minimised. Or the digging can be under the ground and the raw mineral can be transported through tunnels to a far-away location for processing. However, it is not possible to avoid some environmental damage as the opening to the mine is naturally over the ground.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">How is the commercial viability of petroleum mine and, metallic and non metallic mines? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The geological structure and study reports suggest the possibility for petroleum at different locations of Nepal. Oil migrates from one place to another if it can’t get tapped properly.&nbsp; On the basis of studies by the Government and foreign companies, Nepal’s Terai including Churia region is divided into 10 different blocks for petroleum exploration. Shell Netherlands drilled about 3.5 kilometres on the block No. 10 a few years ago and found it dry. Then the company left Nepal. Now Cairns Energy, a British company and Texana Resources, an American company are doing preliminary works like reassessing, evaluating the existing data, and analysing samples but they are not doing it in full scale. Seismic survey has to be done. Then blasting may be required in some places. And wires have to be laid extensively. But it is not possible to do all these at the current political situation of the country. So they are idle. The government has already received back what it has spent on these studies. The government has charged these companies around Rs 200 to 220 million. Among the 10 blocks, five blocks are taken by Cairns Energy and two by Texana. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Oil is being extracted in Assam in India and Potwar of Pakistan since 1970s. As Nepal lies in the same geographical belt, there must be petroleum in our country too. But we have not found it yet. So we can’t guarantee the presence of petroleum yet. In Dailekh we can see the petroleum seepage. Similarly, in Trans-Himalayan region too, we find traces of gas. That shows the possibility of petroleum gas.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which minerals should get priority in exploration and excavation in Nepal in your opinion? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Among the precious metals, gold has to be prioritised and on base metals, copper, nickel and cobalt must be given attention. On non-metals, limestone, magnetite, dolomite, phosphorite and talc have to be given top priority. As these minerals have good prospects to be found and there is international market as well in these, we should explore them also in new places. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="ANSWER" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The government should increase its budget in mining sector. In the last fiscal year, Rs 20 million was collected by the Department of Mines through licensing. But the projects under it get only around Rs 3 to 3.5 million as their budget which is too little.</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">There is a controversy going on in the mining of sand and stones. As a mining engineer, what is your take on it?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Rivers bring down sediments from the hilly region and deposit them on the plain areas where the water current is weak. It is a continuing process. If such sediments are not dug out it brings problem. It lifts the river bed and increases the risk of flooding. But extraction of such sediments must be sustainable and balanced. You should not take out more than what the river has brought down from the hills. The problem at present is that in some places these sediments are extracted extensively while at some places nothing is taken out. At some places, walls are built to save settlements from flooding but sands and stones are extracted even from the foundation of such walls. That is haphazard mining. There must be a mining engineer and a geologist in every Village Development Committee and District Development Committee so as to properly mobilise the resources.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the minerals in which the private sector has shown some interest recently? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Recent report of the Department shows there are 80 licensed mining companies. Some of them are in operation. Most of them are on limestone, coal, red clay, slate, magnesite and on semiprecious stones like kainite, tourmaline, marble and quartz.&nbsp; The licenses already issued cover 12 minerals.&nbsp; And the trend is growing.&nbsp;</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What are the biggest challenges and problems in utilising the hidden treasure called mineral resources of Nepal? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Minerals are mined, so they are also called hidden treasure. However some minerals are found on the surface as well, e.g. the boulders. The biggest problem is that the Mines and Minerals Act, Forestry Act and Local Self-governance Act have contradictory provisions.&nbsp; Forest authority imposes tax on everything in the forest while mining authority says the mines, even within the forests, are under the mining authority. On the other hand, the District Development Committee and Village Development Committee come up and say they have the right over the mine area within their locality. So, the miner ends up paying taxes to all these different authorities. The solution is to adopt one-window policy for tax collection. Three ministries should coordinate and make mining easy. Investors will pay tax when they generate income. Before that they generate employment.&nbsp; So they must be encouraged. If 10 cement factories produce 1000 tons of cement daily, they jointly create employment for 10 thousand people directly and another 20 thousand indirectly. That will have multiplier effect.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">What kind of market prospects do you see if the minerals can be extracted? </span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">The magnesite bricks will not be consumed in our country; not even five per cent.&nbsp; We have to search for international market. Surface transport costs much, so we cannot compete with other producers of magnesite.&nbsp; Therefore, we have to export it even though we have to provide special subsidy in its transport cost. Priority should be given to the minerals that can be used within the country, so that the import can be reduced and the trade deficit can be reduced.&nbsp; We can make good money if we export sand and stones to India and Bangladesh on time. Iron ore can be used within the country by the cement factories and iron mills.&nbsp; Other metals and precious stones have market everywhere in the world.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">Which five minerals would you like to specify as having the maximum commercial potentials?</span></span></strong></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<span style="font-size: 16px;"><span lang="EN-GB">Limestone is the most prominent. Then it is talc. Similarly important is magnesite as its mine operation is not difficult. If plants can be made and products taken to market, it has huge prospects. Only problem is of the fuel. A lot of coal is required. Kathmandu has natural methane gas reserve of 320 million cubic metres. It must be brought to the market. Precious and semiprecious stones, high priced metals and base metals must be highly prioritised.</span><span lang="EN-GB" style="letter-spacing: 0pt;"> <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="QUESTION" style="text-align: justify;">
	<strong><span style="font-size: 16px;"><span lang="EN-GB" style="letter-spacing: 0pt;">It seems that the mineral sector studies are very few and difficult to find. Why is it so? </span></span></strong></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span calibri="" letter-spacing:="" sans-serif="" style="line-height: 115%;">There are a number of research activities carried out, but not on the desired speed and scale. The problem is that the study reports are not made available to the public in a manner that makes them easily accessible to all those interested on it, by paying reasonable fee. This is essential to attract investors. About 60-65 minerals are said to be found in Nepal. Economic viability of such minerals has been changing over the time. For example, once gold was available in Kathmandu for Rs 9 to 10 thousand per 10 grams. That time, the Nepali gold mines were naturally uneconomic. Now that the gold price has increased to Rs 30-40,000 per 10 grams, the same mines may be economical. An authority should be designated to make the decisions regarding which mine should be brought into operation and which to keep on hold.</span><br />
	</span></p>',
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	<strong><span style="font-size: 16px;"><i><span aldine401="" bt="" serif="" style="line-height: 120%;">By M Rijal &amp; Gaurav Aryal&nbsp; </span></i><br />
	</span></strong></p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 2.85pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">T</span><span aldine401="" bt="" color:="" serif="" style="">he present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next 10 years. <br />
	</span></span></p>
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“We are talking about the previously identified mineral resources only,” says Krishna Prasad Kafle, a geologist and mines expert. “Once new mineral resources like petroleum are discovered, the contribution to GDP will far exceed even the present forecast of 15 per cent.” <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The future might look bright; the present situation, however, is still bleak. The fact is that Nepal is a net importer of gold, silver, copper, lead, zinc, iron and steel, aluminum, gypsum, salt, petroleum and high grade coal, among other minerals and mine-based products. “We can change the situation,” adds Kafle. “Nepal has tremendous mining prospects – let’s not doubt this fact. The geology of Nepal itself is the evidence to it.” <br />
	</span></span></p>
<p style="text-align: justify;">
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<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Petroleum Prospects </span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Sporadic oil exploration works in Nepal were first recorded in the 1930s. However, the first drilling was done only in 1989 in Radhanagar, near the eastern city of Biratnagar. The place is now Ward No 9 of Bahune VDC in Morang district <i>(see picture)</i>. Netherland’s Shell Company was involved in the drilling. The company drilled some 3520 metres beneath, but the “well” was found dry. <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">“Only if the company had gone little bit deeper, there was a chance to discover the hydrocarbon (petroleum) deposits,” claims a geologist on condition of anonymity. “As fate would have it, India had imposed economic blockade on Nepal at the same time. Drilling machineries had to be imported from India. The total daily operating cost of drilling sky-rocketed to as high as Rs 30 to 35 thousand (not adjusted with inflation). The company ultimately abandoned its plan of going deeper.”&nbsp;&nbsp; <br />
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">The Petroleum Exploration Promotion Project was set up within the Department of Mines and Geology. It gave momentum to exploration. So far, the Project has performed Airborne Magnetic Survey in 48 thousand sq km, photo-geological study in 60 thousand sq km, Reflection Seismic Survey in some 5 thousand line km, Gravity Survey in the entire Terai region, and Source and Seal Study in entire Nepal. Most significantly, the Department identified 10 <i>probable petroleum deposits</i> blocks in 1985. <br />
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">“Nepal’s whole Terai and Churia range are the most potential petroleum blocks in Nepal,” says Shyam Bahadur KC, the Acting Project Chief. “This is the region constituting all 10 blocks identified for oil exploration.” Each block is of some 5 thousand sq km in area and is named from the west to the east <i>(see Table 1)</i>. The Nepalgunj and Chitwan Blocks (3 and 5, respectively) were leased to Texana Resources, Huston, USA in 1998. But the company postponed exploration works in 2000 citing security reasons. The company is said to have almost completed preparing various maps but has not revealed further as to what would be next. Five Blocks - 1, 2, 4, 6 and 7, respectively, were awarded to UK-based Cairns Energy in 2004. The company postponed works for four years and resumed in December 2009. The company is involved in developing the complete maps first. As for the remaining three Blocks - 8, 9 and 10, the government is preparing to award contracts through a bidding process most probably in the next fiscal year (2011/12). <br />
	</span></span></p>
<p style="text-align: justify;">
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for the reasons for so many researches-planned focusing on the Terai and adjoining Churia range, the geologists have firm belief that Nepal’s Terai is similar in geography to the sub-Himalayan plains of Pakistan and India where hydrocarbon deposits were discovered and are extracted on commercial scale. The Potwar Basin of Pakistan and Digboy of Assam in India are mining hubs in the sub-Himalayan region. “From among the 10 Blocks, if we discover even a single medium size oil well, it can transform the economy of Nepal beyond anybody’s imagination,” KC asserts in an optimistic tone.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">The evidence of Nepal’s hydrocarbon deposits can be seen as the gas and oil seepages in various parts of Dailekh district in mid-west Nepal. For instance, the oil seeps at Padukasthan represent “biodegraded” light oil with geological source, whereas the gas seeps at Navisthan and Sristhan are of “thermogenic” origin, according to geologists. Further, the proportion of higher “homologs (C2-C5)” in the seepages of Dailekh district suggests gases associated with oil. The threat, however, in terms of capitalizing the potential hidden oil wells is that “hydrocarbon deposits are mobile by nature”. If not tapped in time, the whole petroleum reserves may move from one place to another even crossing the man-made boundary of any country – this is what most of the geologists fear in Nepal. </span></span></p>
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
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<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Cement: On the Way to Abundance </span></span></p>
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Among all non-metallic minerals, excavation of limestone – the basic element to produce cement, has increased substantially in the recent years. Limestone is in abundance in the country and predictions are that Nepal has a chance to be fully self-dependant on cement by the next seven months (August 2011). Some six new industries are coming to the fore, in addition to the existing 30 cement industries. “We can now be hopeful that the domestic industries may fully sustain the demand for cement,” says Dhruba Thapa, Vice President, Nepal Cement Industries’ Association. The industries, however, still have to import clinker, which is produced from limestone and used for cement production, from India. As of today, some 30 companies have received limestone mining permission from the Department of Mines and Geology, whereas 167 companies have received the limestone prospecting (exploration) license from the Department. And more than 60 companies have received the license to operate a cement industry from the Department of Industry. In Nepal, the volume of limestone deposits (of cement grade) is believed to be over 1.25 billion metric tons, according to the Department sources.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">As for other non-metallic mineral resources except cement, there are possibilities for unearthing dolomite, phosphorite, magnesite, talc, mica, ceramic clay / red clay, silica sand, salt, barites, calcite deposit and diatomite, etc, from various parts of the country. There are also possibilities for mining precious and semi-precious gemstones such as tourmaline, beryl / aquamarine, garnets, kyanites, rubies / sapphire and quartz crystals. Decorative stones such as marble, granites, quartzites and slate can also be mined. Construction materials such as boulders, cobbles and pebbles are also in plenty while fuel mineral like coal too has commercial prospect. As for the operating mines, there are a few in the country. For instance, mining of marble is being done from Godavari (Lalitpur) and Anekot (Kavre); pebbles are mined from almost every riverside and low-hills and are even exported to India’s booming construction industry. <br />
	</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Metallic Minerals</span></span></p>
<p style="text-align: justify;">
	 </p>
<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">In Nepal, the iron ore prospects and deposits are reported in 85 locations and the copper in 107 locations, zinc and lead in 49 locations, cobalt at least in 4 locations and nickel in at least 5 locations. At present, a Chinese company is involved in the mining of iron in Thoshe, Ramechhap. As for gold, there is no mine in operation as of today, but it is frequently winnowed out from the gravel and sediments of around a dozen rivers like Mahakali, Bheri, Rapti, Kaligandaki and Sunkoshi. Primary gold occurrences have been reported from Lungri Khola area in Rolpa; Banga Bagar, Gorang and Jamari Gad in Baitadi; and Bamangau in Dadeldhura. These areas are, however, yet to be explored extensively. The Department of Mines and Geology thinks that once the mining licenses are issued, the mines will automatically get the status of “operating mines”. As the Department has no mechanism to cross-check the facts going to the field, there is a compulsion to assume that the license holder mines are really operating. Same is the case for gold and other minerals. Two licenses have been issued to mine gold and are taken as the operating mines in the Department’s list without further evidence. <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">As for Uranium, which is radioactive and so, a highly valued mineral, is also reported to have some deposits in Nepal. The sites are Jagati in Bhaktapur and Shiva Puri area in Kathmandu; Tin Bhangaley, Chandi Khola and Chiruwa Khola in Makwanpur; Buka Khola in Sindhuli; Janmari Gad, Banga Bagar and Gorang in Baitadi; and some traces in Chameliya river in Darchula. “Among the potential uranium sites, Tin Bhangaley (Makwanpur) and Gorang (Baitadi) prospects appear attractive, but economic evaluation of these sites are yet to be performed,” says geologist Kafle.&nbsp;&nbsp;&nbsp; <br />
	</span></span></p>
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	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">Methane Gas and Other Minerals</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Kathmandu valley that incorporates three districts of Kathmandu, Lalitpur and Bhaktapur is rich in methane gas deposits. The Department of Mines and Geology explored this gas in 26 sq km area in the valley and it was proved that 316 million cubic metre of methane gas deposit is available for commercial purpose. But it still remains unexploited. <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">Nepal is also affluent in other miscellaneous mineral resources. For instance, there are some 23 geothermal hot springs in Nepal. They are found in the vicinities of rivers like Mahakali, Marshyangdi, Trishuli, Kodari and Surai Khola, among others. The temperature of the hot spring water remains generally in between 40°C to 115°C. The hot springs can be utilized for tourism purpose, as people enjoy taking a bath into it. It is also believed that the hot springs have the healing power in illnesses like backache and arthritis. Thermal electricity can also be produced from the hot springs with the help of technologies.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></p>
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">&nbsp;</span></span></p>
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<p class="MsoNormal" style="margin: 11pt 0in 0.0001pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Challenges</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Nepal’s mineral resources themselves have become the curse, says geologist Kafle. “From mountain to Terai, minerals are scattered all over the country. But we have failed to cash in them. Otherwise, we would have made remarkable economic progresses,” adds he. “Mineral exploration, mine development and establishment of a mineral based industry normally require large investment, sound technical know-how and long gestation period. We lack these all.” <br />
	</span></span></p>
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	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" letter-spacing:="" serif="" style="">It’s a fact, in a money-crunch country like ours, Foreign Direct Investment is a must to explore and utilize petroleum and other mineral resources, says another geologist KC. “The government of Nepal is not able to sufficiently finance the research and exploration of the mines and minerals. Usually the government provides the Department with Rs 3 to 3.5 million annually. This amount is not enough for us,” adds he. “ On the other hand, it is a global practice that the government rather than doing the exploration works by itself, invites companies for the exploration and investment. Even the powerful countries like USA, Norway, Saudi Arabia, etc invite the companies for the investment.” <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Further, there are high risk, uncertainty and long return period involved in mineral exploration and mining. And if the private sector is to invest in it, the government must develop infrastructures like road, electricity and telecom in the mineral deposit sites. <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Yet another biggest problem is that the three laws of Nepal - Mines and Minerals Act, Forestry Act and Local Self Governance Act contradict with each other.&nbsp; For instance, the forest authorities impose tax on everything inside a forest, while the mining authorities say it is different and come under the mining rules and regulations. And the local government bodies such as District Development Committees (DDCs), Village Development Committees (VDCs) and municipalities claim the same taxation rights over the same resources. It is imperative that, to clear ambiguities, the government must make one window policy of tax mobilization vis-à-vis mines and minerals. <br />
	</span></span></p>
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	<span style="font-size: 16px;"><span color:="" demi="" franklin="" gothic="" sans-serif="" style="">The Way Ahead</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">Capable technicians at the Department of Mines and Geology are frequently leaving the country in absence of career prospects and there is no significant entry of new technical manpower at the Department. Such a situation may cause severe hindrance to mining activities in the country. Further, the haphazard pebble and gravel mining activities, such as those in Nallu, Lele and Chapagaun villages of southern Lalitpur may lead to environmental degradation. Development should always be healthy, balanced and eco-friendly. <br />
	</span></span></p>
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<p class="MsoNormal" style="margin-bottom: 0.0001pt; text-indent: 14.15pt; line-height: 11pt; vertical-align: middle; text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="">For public scrutiny, it is extremely difficult to extract information from the Department and to some extent, from the Department of Industry. Mines and mineral related information should not be stored but disseminated and exposed through publications and media campaign on a regular basis. Mining potentials must be publicised so as to lure the potential investors and create awareness among the policymakers. This very thing is lacking in Nepal. <br />
	</span></span></p>
<p style="text-align: justify;">
	<span style="font-size: 16px;"><span aldine401="" bt="" color:="" serif="" style="line-height: 115%;">At least for the moment, only if the petroleum exploration works in the 7 leased blocks could enter the phase of drilling; it could be a silver lining to all those who wish to see the works moving ahead on a fast track. </span><br />
	</span></p>',
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			'description' => 'The present contribution of mines and mineral industries to Nepal’s GDP stands at around 2.4 per cent and it may rise to as high as 15 per cent in the next',
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		'Article' => array(
			'id' => '112',
			'article_category_id' => '40',
			'title' => ''The Government Has Not Recognised Advertising As A Real Industry'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
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				<strong>You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.</strong></div>
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				<strong>In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.</strong></div>
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			<strong>Being a key player in Nepal’s ad industry for almost two decades, what is your evaluation of its evolution? </strong><br />
			Our market has seen tremendous change and ended with a 360 degree turn of success. We only had the state-owned Gorkhapatra and The Rising Nepal in the print media and Nepal Television and Radio Nepal in broadcast media to begin with. Most of the advertising two decades ago constituted government ads and notices. Over the years, Nepali advertising has taken a long leap because consumption patterns have changed and the market has changed, too, because of democracy and several other factors. Multinational companies (MNCs) were not there. FMCG (Fast Moving Consumer Goods) products were very few. Today, we have MNCs, new big companies and many FMCGs. All these changes have brought in new players in the market. The advertising situation has been changing every five years. Today, we are almost on a par with advertising industry in the neighbouring countries. But our online advertising has not grown as expected.<br />
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			<strong>There seems to be unhealthy competition among the major players on holding onto the clients. How can this be controlled?</strong><br />
			Unhealthy competition does exist, but it is not as it was a decade ago. The clients have become more professional and demanding. Leading advertising agencies are under pressure to produce quality ads ever since the clients have started demanding effective campaigns. If you can deliver good work and service to the client, the client is bound to stay on. The smaller advertising agencies, however, continue to compete with each other by offering lower tariff and increased percentage sharing to the clients. I am sure this scenario will change with time once they come to terms with the professional demands of the market. Media exposure has led to clients demanding more professional service as they now know what’s happening in other countries. Compared to a decade ago, there are more advertising agencies producing quality work which has helped bring down unhealthy competition.<br />
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			<strong>Now the ad market of Nepal stands at around Rs 3.5 billion. Are the ad agencies having a good time? </strong><br />
			Yes, it is a good time for the ad agencies which are serious and professional. They are prospering and they will be prospering.<br />
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			<strong>Prisma has top profi le clients like Bottler’s Nepal, Samsung, Western Union, Ncell and Bajaj, to name a few. How tough is the competition among the agencies? </strong><br />
			The competition among the top notch agencies is very healthy and professional. We have a good portfolio of clients but in today’s age of competition, we have to be better than others and perform well to get an edge. So, the competition among the top notch advertising agencies is more in terms of quality and creative work.</div>
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			<strong>The number of advertisers has grown but the number of ads and the market value have grown more. What is contributing to this growth? </strong><br />
			Several factors have contributed to this growth. For one, our urban population is growing consistently and so is the demand for products and brands. MNCs like Unilever and Dabur are pumping in more investments. Another reason for this growth is the change in our consumption habits. Almost 60 per cent of our population is below 32 years of age. This population is literate and possesses decision making capacity which enables them to dictate the market, which in turn, demands the products to be competitive and good. This is where the advertising agencies come in the picture. The entry of new players into the market fuels increased advertising spending from the existing competitors. An example is, when today’s Ncell came in as Mero Mobile, Nepal Telecom was forced to turn aggressive. During its old days of monopoly, it never felt the need for advertising as it does today. Similarly, there are certain sectors that have grown tremendously in recent times. Today, the largest spender in advertising is the education sector. Real Estate sector is another major contributor to Nepal’s advertising industry.<br />
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			<strong>Is the lack of creative talent the only reason our advertisements are not at par with foreign advertisements? </strong><br />
			I, for one, do not agree with this. When you look at any other country’s advertisements, for example India, there is sectoral advertising. Each advertisement there targets a special section of the society. Nepal is a market with all sorts of consumers mixed up. I cannot make a very creative ad for a mobile phone company like Ncell as it should cater also to the consumers living in remote Nepal where literacy level is very low. I do not expect such audience to comprehend the message that I will be conveying through a highly creative ad. For example, I cannot compare the comprehension levels of the youth in Kathmandu and Solukhumbu. It’s a major reason why Nepali ads are created in the simplest manner possible. What use is creativity if it cannot sell a product? It would be unfair to judge the creative talents of Nepali advertising professionals given the constraints that they have to face. It would be equally unfair to compare us with international advertising which caters to people with high literacy levels and different mindsets from ours. You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural<br />
			Nepali audience, too.</div>
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			<strong>Aren’t the agencies pressurising the government to introduce a regulatory framework? </strong><br />
			We have been pressurising the government for a long time. Despite us being an Rs 3.5 billion industry today, the government has not recognised us and given us due treatment. During election time, politicians seek our assistance to create campaigns which means they do know the importance of advertising even for electoral purposes. However, once the government is formed, they forget that advertising should be treated like an industry.<br />
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			<strong>Today’s youth look at careers other than advertising. How does that impact the ad industry? </strong><br />
			One of the biggest challenges for our ad industry is the lack of quality human resource. We have not been able to create enough interest among the youth. They would rather aspire for a banking career, for example, which is secure as well as a rewarding career. Advertising is merely a small topic for them while in college and not part of their core curriculum as such. It’s ignorance that’s keeping them from a career in advertising. They probably don’t realise that advertising, too, can be a lifelong and rewarding career. Once they realise this, the problem of quality human resource will have found a solution.</div>
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			<strong>Almost all MNC ads are dubbed from foreign languages, mostly from Hindi. Can’t we come out with our own ads for these products? </strong><br />
			One reason for dubbed ads is the trickle-down effect of international media in Nepal. For example, multinationals like Unilever want to create synergy among the communication they are doing in this region as most people have already seen the same advertisements on Indian TV channels. Nepal and India have similar culture and consumption patterns. In India, too, they use the same ad in different languages in different states. This way, the advertiser saves the production cost of new advertisements and invests only in releasing them over a number of channels in different languages. Another reason is the celebrity endorsement. Indian celebrities are equally popular in Nepal. A possible solution could be ‘clean feed’ which will block the advertisements on foreign channels aired to Nepal, thus forcing the advertisers to create advertisements in Nepali. However, there is no such policy at this point of time.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Our ad market is only of Rs 3.5 billion. Isn’t it quite small in size when you consider that a single company allocates more than this for advertisements in other countries? </strong><br />
			You have to understand that our market size is rather small. You cannot compare the advertising budget of Indian corporates with that of ours. A company’s turnover usually determines the amount it wants to allocate for advertising spending. Another thing that we need to look into is the potential of the market in terms of growth which also induces the budget of the industry. Thirdly, the government policy doesn’t provide for tax exemption on advertising spending after a certain limit after which the money spent on advertising is not considered as an expense. This discourages advertisers from making sustained investment in advertising. In other countries, there is a rebate of 5 to 10 per cent out of the profit that can be spent on advertising that encourages the advertisers to spend more. We need a similar policy in our country.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The reported annual growth of 12 to 15 per cent of the ad industry is said to be mainly because of media infl ation. Do you agree?</strong><br />
			Inflation is created by the media but there is always a debate in the advertising sector for several reasons. You see electronic media suffering a lot during load shedding. On the other hand, there are advertising categories which have been shrinking because the whole industry has shrunk. Lately, noodles industries’ advertising spending has gone down heavily. But we are still growing. New breed of advertisers such as the real estate, education sector, and lately, DTH have come up. We are growing not just because of media inflation; there is a genuine growth, too. We expect to grow at 20 to 25 per cent looking at the pace of media growth but it is not happening because of the political situation and power cuts.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What is the market share of Prisma?</strong><br />
			We are proud to be in the market for 20 years. There are good clients attached with us for more than a decade. Our clients have succeeded in becoming market leaders over the years. We consider good work, recognition and revenue as the most important. It’s important to enjoy a good profit even if the turnover is less. I cannot quote a market share for you but we are holding a good position in the market.<br />
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			<strong>Which Nepali ad do you think is the best, either by your agency or some other agency and why? </strong><br />
			The biggest and the best campaign that ever happened is the Ncell rebranding from Mero Mobile that we did. The campaign was very successful and we are very proud to have done this campaign. Also, it was the only rebranding ever happened in Nepal.</div>
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'You cannot compare a Vodafone campaign in India that targets the urban youth there with an Ncell campaign which has to take into account the rural Nepali audience, too.',
			'sortorder' => '60',
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	(int) 8 => array(
		'Article' => array(
			'id' => '111',
			'article_category_id' => '40',
			'title' => ''An Advertisement Must Sell The Product'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.</strong></div>
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				<strong>We defi nitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal.</strong></div>
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</div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>How do you evaluate the Nepali ad industry? </strong><br />
			The industry has grown a lot in the last decade and it is still growing. It’s a Rs 3.5 billion industry now. But there’s still the lack of trained, educated professionals in this field. It makes a huge difference in the output, especially in a creative field. The new generation, it seems, is more comfortable to work in the banks, the way the old generation preferred government jobs to private ones. In advertising, as is the case with any other creative sector, people who don’t want a nine-to-five job are more interested. And those who want to explore their talent join this industry.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<strong>There is no categorisation of ad agencies. Every agency has the same basic tag of ‘Advertising Agency’. Is that alright? </strong><br />
			It is high time that we differentiate. When we help sell the products of the clients, we position them. Every product has its own positioning. Similarly ad agencies must be differentiated or, let’s say, positioned. We in Water Communication would like to call ourselves a strategy and design company. Others see us as a creative agency. I think creativity is essential but strategy must be stronger.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>A common criticism against the Nepali ads is that they lack creativity. Ad agency people say that highly creative ads tend to go a bit over the top and that the general public fails to catch them. Can’t we create ads that are simple, yet highly creative?</strong><br />
			Creativity must be saleable. If you can’t sell creativity, I don’t call it creative. The main purpose of advertising is to promote the sales of products. Creativity must be promoting the sales. We don’t make ads for the sake of creativity. In the case of Nepal, the boundary for creativity in advertising is limited. I have to sell the products of my clients anyhow. Clients have different needs. And we need to be flexible.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Many ads are made in such a way that the focus is more on something other than the product or its value. Such ads, rather than promoting the products, end up confusing the consumers. What is the main reason behind it? </strong><br />
			The person or agency responsible for making the promotion strategy must be aware what they want to sell. If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>Mobile phones and the Internet are growing as big media. How is your agency trying to cash in on this opportunity?</strong> <br />
			The new media is coming up rapidly and has a huge scope. In Nepal, the mobile phone has a greater scope than the Internet as there are more mobile users. Around 30 per cent Nepalis have access to mobile phones. Despite knowing about this opportunity, many ad agencies are unable to tap it. Mobile phone is a medium which provides a direct contact with the customers. But we don’t have an up-to-date database for that. Marketing through mobiles is a recent phenomenon in Nepal. We are far behind countries like India, China or even Bangladesh. Our customers are semiliterate. Still print is the best media for us for the time being. The television has definitely gained in popularity lately. So, it will certainly take some time before advertising could be done through the new media.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>As you said, the industry has a big problem of skilled human resource. How are you managing this crunch? </strong><br />
			We definitely lack the right people in the advertising industry. There is no academic institution to train people in advertising, besides the regular brief training packages provided by the Advertising Association of Nepal. So, there are very few trained professionals in the creative department. In the marketing department, we manage with the products of private colleges.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Celebrity endorsement is not used much in the Nepali ads, while we see that quite a lot in foreign ads. Why are our ad makers not interested in using the celebrities to make ads? </strong><br />
			A celebrity is already a brand. But the celebrity-brand is perhaps yet to find a wider acceptance in Nepal. A product is also a brand. Rajesh Hamal is definitely a brand. It’s the media that creates a celebrity who then naturally becomes a brand. But sadly, the Nepali media has not gone beyond Rajesh Hamal and a few other names. Stars are not made by advertising agencies but by the media. We have limited celebrities and almost all the advertisers are using them to endorse their brands.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>In creating an advertisement, who plays the important role - the advertiser or the ad agency?</strong><br />
			Both play very important roles. And both have a common purpose – to reach the consumers. Clients give their needs and requirements and agencies help them with the means to reach the consumers. At the end, that must sell the product. Some might say that advertisers influence the creation of ads while others might argue that such an influence is possible because the ad agencies are not competitive.<br />
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			<strong>What are the problems and challenges you are facing in this industry? </strong><br />
			The major problem we are facing is the lack of human resource. Another problem is the industry’s growth is not healthy and professional. There is unhealthy competition going on. There are many people who talk more and work less. There is no design policy. Such a policy would not only help to promote the products but also determine the country’s image. When we talk about Nepal tourism year, Nepal is not to be promoted only by the Nepal Tourism Board. Nepal has to be sold as a product. I don’t know if anybody has even thought about this policy.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What future do you see for the advertising industry? </strong><br />
			It’s going to be more competitive. It will be run by more professional people. Our market is very small compared to the Indian market. To survive here, agencies must have more professional people. Strategically, only strong agencies can come up with such human resource and compete. The small agencies that can’t compete won’t be able to survive in the market.<br />
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</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2010-12-27',
			'keywords' => '',
			'description' => 'If I want to sell a house, I must know who the customers are and what their needs are. The consumer insight, aspirations and needs must be properly understood before making an ad. And the creativity that goes into the making of the ad must link those needs.',
			'sortorder' => '59',
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	(int) 9 => array(
		'Article' => array(
			'id' => '110',
			'article_category_id' => '40',
			'title' => '‘The Number Of Women In Advertising Is Increasing’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.</strong></div>
		</div>
	</div>
</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you set apart your ad agency among several others in the market?</strong><br />
			Advertising agencies are basically the same. Our ultimate target is to produce an advertisement that satisfies the clients and stays in the minds of the consumers for long. But definitely, we are able to set ourselves apart because of our philosophy. This philosophy defines me and my team. I and my whole team believe that we work hard, talk straight and are damn good at what we do. This confidence in the profession has established our team in this industry.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>With the number of ad agencies increasing every year, how tough has the competition become?</strong><br />
			I am happy that gradually people are realizing that the advertisement industry is a field with lots of opportunities. I don’t see it as a competition. I don’t think I am competing with anyone. Rather, I compete with myself. I have set some goals for myself and I am constantly working to meet these goals. I take each day as a challenge. I want to do better than what I did yesterday.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the problems of the Nepali ad industry? </strong><br />
			A major problem is the lack of skilled human resource. First, our youths are unaware of the opportunities in advertising. They either want to work in banks or in the multinational companies. So we are not getting smart and creative Nepali people even if we pay salary and other benefits on a par with these institutions. Second, we don’t have schools or institutions where we can enhance our creativity. An advertising agency has to hire a freshman. It takes at least a year for that person to learn everything. But when he is ready, another agency takes away that person. Third, even though we hire the best person in our company, our clients do not have confidence in them. They insist on hiring a foreigner for creative concepts. Thus the money that we could have spent in our country goes outside. Mostly, this money goes to India.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There are many ads that use the female body just as a means to get public attention. How do you see this trend?</strong> <br />
			Different people have different perceptions of the same thing. In my case, I believe showing females in an advertisement is not bad but how they are shown makes the difference. We live in a country like Nepal where we follow certain norms and values. No advertisement should cross the social limits such that it becomes unacceptable to society at the end. Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.<br />
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			<strong>Do you implement your such ideas when you make ads? </strong><br />
			Being a woman, I think a lot before doing anything. I am very careful not to tarnish the image of females through my advertisement because with every woman I associate myself. Similarly, when I think logically as an ad maker, I know there are several things in the nature that can be depicted in an advertisement in the place of women to convey the message. If anything is shown unnecessarily, consumers</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How is the participation of women in this fi eld so far? </strong><br />
			As of now, there are many women working in this field. And I think their number is increasing. But there are very few women who are investing in this field or holding top positions. I have been able to establish myself because of my confidence. I never feel weak just because I am a woman. I think I can compete with men in every aspect. Every woman should feel this way.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Is it a fi eld suitable for women?</strong><br />
			I don’t want to categorise professions on the basis of gender. With confidence and creativity, everyone can do better in this profession. Women can compete with men in every profession. However, women still lag behind because of low self-esteem. Women should take a step forward and explore the opportunities in this sector. I strongly believe that an advertising professional can fit in any other sector because he/she gains a bit of many different experiences in this field -- marketing, designing, writing etc. This field has so much to offer to creative people.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What should be done to attract more women to this creative fi eld?<br />
			</strong>People become successful when they work in the field of their interest. If someone has an inner desire to be a part of the advertising industry, I would welcome them. However, they have to be able to face the challenges. I urge women not to feel weak or discouraged because this is a field where creativity counts, not the physical strength.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Who are your top clients? </strong><br />
			Chaudhary Group, Triveni Group, Sujal Foods, MariGold Foods, Khajurico Nepal are our top clients. There are several others, too. And we have some snacks and confectionaries in the list.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which Nepali ad do you consider the best, made either by your agency or other agencies? </strong><br />
			I consider the advertisement of U-n-Me tea to be the best advertisement of our team. I love this advertisement because it is very tender. It has a quality to touch the hearts of the consumers and remain in their minds for a long time. Among the ads made by other companies, I think the advertisement of Wai Wai Gyan Uday is the best for the beautiful amalgamation of caste and creeds of Nepal.</div>
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-27',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Using the female body is okay if the concept of advertisement demands it. But no compromises can be made when females are shown in a way that hurts the sentiment of all females.',
			'sortorder' => '58',
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	(int) 10 => array(
		'Article' => array(
			'id' => '109',
			'article_category_id' => '40',
			'title' => ''Advertising Is Growing At Breakneck Speed'',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 595px;">
	<div justify="" style="width: 595px;">
		<div>
			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.</strong></div>
		</div>
	</div>
</div>
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<div style="width: 595px;">
	<div justify="" style="width: 595px;">
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			<div align="center" style="border: 1px solid rgb(204, 204, 204); padding: 5px;">
				<strong>The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them.</strong></div>
		</div>
	</div>
</div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>v-chitra won awards under fi ve categories, including the “Best Creative Agency” Award, in the latest Crity Awards. What puts this company on the top?</strong><br />
			Our motto is: Everyday is a new beginning. So for us at v-chitra, winning an award is a thing of the past. But awards do put more pressure on us, as our clients expect more from us. At v-chitra, we believe that everyday customers have new choices. Everyday our clients have to renew their relationship with their customers so as to remain the first choice. So, we strive to make that happen, everyday.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which do you think is the best advertisement campaign and why?</strong><br />
			My next campaign will be my best one. Every campaign I develop becomes a part of my learning curve. It helps me experiment with new ideas and presentation styles. So, after making a campaign, I analyse it in detail to see if it could have been better. I make sure that I implement what I find in my analysis in my next campaign.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>What is the market share of v-chitra? Who are its major clients? </strong><br />
			It is very difficult to calculate our market share in percentage. But what I can tell you is we are one of the fastest growing agencies. Our Major Clients now are the Chaudhary Group – Wai Wai and Rio; Syakar Group – Honda two- and fourwheelers, Honda generators and Philips; Pashupati Paints; Teletalk – Colors Mobiles, Yeti Travels, Rosebud School, and Balterio floorings, among many others.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Different sources have different estimates about the size of Nepal’s advertising industry. What is your estimate about the size of the ad industry? </strong><br />
			Genuine figures about the size of the advertisement industry are not available. These days, different sources are making different estimates. But we cannot comment on any of the estimates or verify any of them.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>How do you see the evolution of the advertising industry in Nepal? </strong><br />
			It is growing at break-neck speed. Nothing can stop it. But there are some constraints. The biggest constraint is the shortage of professional human resource. As far as infrastructure is concerned, there is a great chasm between man and machine. The industry has invested in physical infrastructure but not in the professionalisation of human resource. Currently, a majority of talented youth is going overseas to study. The industry has failed to develop interest in the young talents towards advertising. At the recent Crity Awards, I was happy to see a category for the “Best Creative Youth.”But that’s not enough. We have to make an advertising career just as lucrative as a banking career.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Most of the advertising agencies play the role of a mediator between the advertisers and the media. Is that all an Ad agency is supposed to do? </strong><br />
			The most important function in advertising is to create. Creating new concepts and ideas, to effectively sell the products and services is the primary objective of any agency. Everything else in an agency is support service. At v-chitra, we concentrate on providing creative solutions that are based on sound marketing strategies. Without a sound strategy, all creative concepts will fail.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>With the demand for advertisements growing, there seems to be a mushrooming of ad agencies. What makes v-chitra stand out? </strong><br />
			We try to create effective communication platforms for the products and services we represent. Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.<br />
			<br />
			 </div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>There seems to be unhealthy competition among the major players of the advertising industry in terms of retaining the clients. What do you have to say about this? </strong><br />
			The unhealthy competition is created by agencies that cannot offer quality services. In an effort to retain their own clients or even get the clients of others, some agencies lower the fees for their services to such an extent that it is not possible to compete with them. But the clients need to understand that they are causing a long-term, irreparable damage to their brands by associating themselves with such agencies.</div>
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>In Europe and America, online advertising has come up really strong over the past few years. Why do the ad agencies in Nepal continue to ignore online advertising? </strong><br />
			Online advertising will increase only when the base of computer and Internet users is wide enough. Clients like to spend on the kind of media that has a wide readership, audience or viewers. Having said that, I think online advertising, too, is picking up in Nepal. The growth is slow, but it’s definitely picking up.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What is the situation of the availability of professional human resource in advertising?</strong><br />
			The youth have to be shown the rewards, financial or otherwise, for them to enter this industry. An agency can offer such rewards, only if it is itself rewarded. As of now, the clients expect many of our services free of cost; they think that 15 per cent media commission is enough. Even that is shared and stretched to the limits by corporate houses that see only their profit. But they need to understand that squeezing an agency beyond the limits affects them and their brands directly because it also affects, directly, the quality of service and creativity.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What are the challenges and problems of the advertising industry?</strong> <br />
			The lack of professional human resource is the biggest challenge. The industry needs more smart, young and energetic professionals. Alongside, we should generate new talents who will enhance the quality and scope of advertising in Nepal.<br />
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		<div align="justify">
			<strong>What do you expect from the government for this industry?<br />
			</strong> Advertising is self sustaining. It is purely an economic activity that survives on entrepreneurial initiatives. Businesses today have realised the importance of advertising. All that I expect from the government is to create an ideal business environment for the industries and services to flourish. Then the advertising industry will automatically sustain itself.</div>
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-26',
			'modified' => '2011-01-02',
			'keywords' => '',
			'description' => 'Our creativity distinguishes us from the competitive advertisements, making our products stand out in the media clutter and thus generate better sales. That is how we create the v-chitra brand. All v-chitra creative team members have only one thing in their minds – SELL, SELL and SELL.',
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	(int) 11 => array(
		'Article' => array(
			'id' => '108',
			'article_category_id' => '40',
			'title' => '‘The Advertisers Need To Realise That A Single Slogan Can Work Wonders For Them.’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.</strong></div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>How do you view the Nepali advertising industry in the present context?</strong><br />
			The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you look at the current size of Nepal’s advertising industry which is said to be around Rs 3.5 billion?</strong><br />
			I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.<br />
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>What has prompted the growth in the industry’s market value? </strong><br />
			This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What rate is the Nepali advertising industry growing at, on an annual basis? </strong><br />
			Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry. <br />
			<br />
			<strong>What is the advertising spending of MNCs here vis-à-vis the domestic companies? </strong><br />
			The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Could you take us through your journey of 20 years with the advertising industry?</strong><br />
			In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>What are the problems and challenges that the industry faces today? </strong><br />
			We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.<br />
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</div>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Even though Nepali advertisements have come a long way, we are still not in the same league when compared to global advertisements. Why so? </strong><br />
			I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Does the industry follow a particular line on ethical issues? </strong><br />
			Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.<br />
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		<div align="justify">
			<strong>What are the accounts you are currently working with? </strong><br />
			We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&amp;G and UTL etc.<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Which advertisement campaign are you particularly proud of, during your entire career? </strong><br />
			It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.</div>
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<div style="width: 583px;">
	 </div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2010-12-24',
			'keywords' => '',
			'description' => 'I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.',
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		'Article' => array(
			'id' => '107',
			'article_category_id' => '40',
			'title' => '‘We Need An Advertisement Censor Board’',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="width: 583px; text-align: center;">
	<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/crity-award.jpg" style="margin: 0pt; padding: 0pt;" /></div>
<p>
	 </p>
<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.</strong></div>
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	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Why was AAN formed and what are its activities? </strong><br />
			AAN (Advertising Association of Nepal) was formed as the umbrella association of the advertising industry. It was set up for the protection of the rights and welfare of the industry, and to formulate the policies. It plays a vital role as a bridge between the advertisers and the media enterprises.<br />
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	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>Being an old hand in Nepal’s advertising industry, what is your take on its evolution?</strong><br />
			The advertising industry has now transformed from being a small business sector to a full-fledged industry. Having grown consistently over the years, it has gradually asserted its role in the corporate world. It’s unimaginable today that a product/brand can establish itself in the market without the help of advertising campaigns.</div>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>The advertising market of Nepal stands at about Rs 3.5 billion. Is the growth in tandem with the expansion in other sectors? </strong><br />
			This augurs well for the advertising agencies, for sure. In fact, the industry value should have been around Rs 4.5 billion owing to the inflation. However, political instability has inhibited its progress to a great extent. Looking at the positive changes, even the rice brands have started advertising which never happened before. Even though the advertising market has been growing at the rate of 15 to 20 per cent annually, the time has not come for us to get particularly happy about it.</div>
	</div>
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
		<div align="justify">
			<strong>How do you view the unhealthy competition among the advertising agencies? </strong><br />
			It is no secret that there is unhealthy competition to get ad accounts. However, the Nepali media is the main reason behind this unhealthy competition. The number of media houses has been increasing at an alarming rate despite the market remaining comparatively small. The lack of uniformity in the market value, non-existent market planning and direct marketing, among others, are the key reasons for the unhealthy competition.<br />
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			<strong>How can the unhealthy competition for holding the clients come to an end? </strong><br />
			There must be uniformity in the market rate. Next, it has become absolutely necessary that the ad agencies be categorised. Similarly, the media should be categorised, too. The government must issue licenses taking into consideration the respective categories. AAN has been working on this in association with various media groups. For example, we have worked with the Television Broadcasting Association to fix ad tariffs. Fixing a standard ad tariff will definitely create a favourable environment for the investors and help the market sustain.<br />
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			<strong>Is the industry in dire need of a regulatory framework? </strong><br />
			To regulate the advertising market, an advertisement policy is mandatory, to start with. We have certain policies but they need to be updated with the changing time. The government must have a different advertising authority set-up to regulate the advertising agencies.<br />
			<strong><br />
			According to you, which Nepali ad is the best, in recent memory? </strong><br />
			Personally, I like Jagdamba Steel’s “Nepali Mann Mann ma” which incidentally, was produced by Welcome Advertising. It was voted as the most popular ad. Quality wise, I think Pepsodent ad is the best one.</div>
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			<strong>In general, the youth is looking at several career options but not advertising. What could be the reasons behind this? </strong><br />
			There is no doubt that we have not been able to attract young talent. However, the youth is showing interest in being a part of the industry, off late. Colleges have included advertising as a subject in their syllabi and advertising training centres such as Infinity Advertising Training Institute, too, are being established. Therefore, we are looking at better times ahead and hope that more young people will look at advertising as a rewarding career. There is the lack of skilled manpower due to braindrain and also because the trained ones are enticed by the banks. If the advertising industry will be managed properly, most of the youngsters would be in this sector.<br />
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			<strong>Why do our advertisements lack quality as well as creativity compared to the advertising standards abroad? </strong><br />
			My personal opinion is that Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity. The Nepali advertising agencies have been awarded with a number of international awards and certificates of merit since 2003. I will go as far as to say that our creative talents are second to none in South Asia. The annual Crity Awards have also encouraged the advertising agencies to produce better creative work. As the market gets more established with time, we should definitely be in a position to compete in the international market with a renewed vigour.</div>
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			<strong>Why were the recently held Crity Awards criticised and labelled as biased? </strong><br />
			Crity Awards is not confined to honouring advertising excellence. It is a celebration for the entire media industry. Any talk of branding the event as controversial is a baseless rumour. Recently, we organised a post-event programme for the ‘6th Crity Awards 2067’ where we had an interaction among the advertising agencies, media executives and journalists. We reached a conclusion that the awards ceremony did not have any reasons whatsoever to invite the wrath of the so-called critics.<br />
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		<div align="justify">
			<strong>The corporate big-wigs are circumspect about investing in the advertising industry. How do you view this hesitation?</strong><br />
			Well, there is sufficient investment in the advertising industry and that is why it has transformed into an industry from a small business. The annual turnover of the industry is Rs 3.5 billion now. AAN has close to 140 ad agencies registered with it. Politically, once there is a peaceful environment in the country and we have a stable government in place, the investment will definitely increase. There is a good number of multinational as well as local brands looking forward to an investor friendly environment to start/resume investments. It is only a matter of time, hopefully.</div>
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		<div align="justify">
			<strong>Besides being an advertising administrator, you are also an entrepreneur in the industry. How are you doing on that account?</strong><br />
			Welcome Advertising is an independent agency, in operation for 21 years now. It is an authorised member of the International Network in Nepal as well as a production house. Welcome Advertising works with some of the biggest names in the market such as the Jagdamba Group, Unilever, G Phone, MS Group etc.<br />
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		<div align="justify">
			<strong>There has been an issue about exaggerating product features through advertisements. How do you plan to address this? </strong><br />
			The question you have asked is very relevant in the present context. These are the advertisements which are produced by the clients themselves that are courting controversies. For such problems, censorship of advertisements is the best solution that one can think of. Therefore we do need a censor board which will monitor and approve advertisements before they go to print or get aired. The government must take an initiative to this end by setting up a separate advertisement authority. Alternately, the government could give this responsibility to AAN.</div>
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		 </div>
</div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2011-01-02',
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			'description' => 'Nepali advertisements do meet international standards. However, it’s unfair to pit us against international advertisements which are produced at costs manifold than ours. We may produce advertisements with far smaller budgets but we never compromise with creativity.',
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			'id' => '106',
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			'title' => 'Body And Mind',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 583px;">
	<strong>Most of the scientific claims made by product advertisements are derived from correlation rather than causation.</strong></div>
<p>
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<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
		<div align="justify">
			<strong>Body and Mind</strong><br />
			Even a single cell organism such as a bacterium acts as if it has a mind. It moves away from toxins and towards nutrients. For bacteria, such behavioural response is the key to survival. Humans have minds, in addition to bodies, although both serve the same purpose -- a purpose shared by every species on earth, i.e. survival and well- being. Products and services, in essence, serve the purpose of mind/body by enhancing the survival (physical, psychological and social) and the quality of survival. No wonder advertising is more and more focused on the quality of life that products bring to consumers’ lives rather than their functional attributes.<br />
			The question of mind-body has intrigued many great philosophers and scientists. While the eastern civilization had long understood the connection between mind and body, it took a long time for the West to grasp this knowledge. An increasing body of scientific evidence suggests that mind (the immaterial) and body (the material) have a symbiotic relationship. What happens in the mind has outcomes on the body, and the body has a significant role in the shaping of the mind. But for many centuries, the West embraced the concept of disembodied mind (mind separate from the body; spirit separate from matter) and this had a profound impact on many disciplines including medicine, as exemplified in the way it treated diseases (by simply focusing on the body and not the mind). It would not be wrong to assume that this mind/ body problem had a great impact on the way marketers approached advertising. As a result, for a long time, marketers practiced a rationalist-materialistic approach in advertising (e.g. nice shampoo=nice hair=nice job).In the absence of proper understanding of bodily emotions and their influence on the mind, emotions were generally overlooked as an effective approach in advertising. <br />
			Emotions help us survive and survive better. If we did not have the emotion of fear, we would walk </div>
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			<img alt="" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/car.jpg" style="margin: 0pt; padding: 0pt; width: 280px; height: 313px;" /><br />
			<br />
			freely in the middle of the highway, though not for very long.If we did not feel good or happy, we would not get into any kind of exploration; whether it was seeking a mate or having sex when we lived in the jungle or seeking scientific discoveries while we live in a civilized world. It is very difficult for an eternally sad and depressed person to engage in such explorations. Some argue that emotions are dysfunctional, but this is true only when an emotion or its intensity is inappropriate to the situation. <br />
			With the re-emergence of the integrated theory of mind/body, and the role of body (where emotions occur) and its making of the mind (where the emotions are felt and classified as painful or pleasurable etc.), emotions have received their due importance in management and, by extension, in advertising. It is worthwhile to note that beliefs are tied with emotions. And emotions can lead to new beliefs and strengthen existing beliefs. It is our emotional connect with the brands that strengthens our belief in them.Only recently has science agreed upon a broad definition of emotions and their purpose in our lives.</div>
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		 </div>
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			<strong>Mind and Brands</strong><br />
			Products exist in the outer world. Mind exists inside us. We engage our body to interact with objects (including products) and events in the outer world.<strong> </strong> However, it is our mind, in conjunction with our body, which gives meaning to those products.<br />
			In other words, mind and products come together to make a brand. Products, or for that matter, any external objects or events, do not have much intrinsic qualities of their own. Products are generally neither good, nor bad; neither black nor white; neither beautiful nor ugly. And when they are made under the statutory quality standards, they are neither superior nor inferior. It is our mind that gives (or doesn’t give) products such qualities. <br />
			This is where advertising comes in. Advertising helps the mind embrace the</div>
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			intended qualities of products through association or conditioning. When those intended qualities, through a repetitive exposure of messages (provided they are delivered in the proper way, here delivery of the message is the key) become hardwired in the brain, they become a belief. Beauty care products don’t make us more beautiful as much as they make us feel more beautiful, and so do the designer clothes and many other products. Does one nutritional drink make kids smarter or taller than others or does it make any smarter at all? No one can say for sure. Most of the scientific claims made by product advertisements are derived from correlation rather than causation. But if the consumers strongly believe (with strong emotions) that it does, then no reasoning can change their mind.</div>
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			<strong>Brands and God</strong><br />
			Brands are much more than simply matter, much more than what they are made of. Belief is what lies underneath both God and brands; the only difference is the degree. And mind is the space where both God and brands are experienced. This is in no way meant to reduce God to mental states or to draw any parallel between God and brands, because God is much more powerful than any brand mankind has ever made.</div>
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			Only God can create the kind of belief that He does. However, I believe that any brand that can create a godlike belief will be the truly ultimate brand. Whether it is ever possible to do so is another question altogether. But that should not stop brands from trying. This effort is what will drive brands to continually evolve forever. (Panday is a Creative Consultant and winner of six Crity Advertising Awards)<br />
			 </div>
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	<div style="clear: both;">
		 </div>
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			'description' => 'Most of the scientific claims made by product advertisements are derived from correlation rather than causation.',
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	(int) 14 => array(
		'Article' => array(
			'id' => '105',
			'article_category_id' => '40',
			'title' => 'God, Belief And Brands',
			'sub_title' => '',
			'summary' => null,
			'content' => '<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 595px;">
	<strong>In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.</strong></div>
<p>
	 </p>
<div style="width: 595px;">
	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: left;">
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			Have you seen God? This is a question I have faced many times in life. As a theist, I find it difficult to answer this because I haven’t seen God. But not seeing God or rather not being able to see Him hasn’t changed my belief in Him. My inability to see God can be attributed to many reasons. Perhaps God hasn’t endowed me with senses (vision, in particular) strong enough to see Him. Perhaps God doesn’t exist in the form and shape that my senses are attuned to. Humans have the instinct to anthropomorphise objects. Everything has to be human like. We look for faces in the clouds and in cars. In marketing, we attribute human-like characteristics to products. But, God doesn’t necessarily have to be a carbon based organism governed by the laws of the cosmos.<br />
			As for science, it has a concrete theory neither about the origins of mankind and the universe, nor about the brain which builds such theories. So, for science to come to a conclusion about God would be a bit too premature. Science, especially narrow science, rejects what it doesn’t know and ignores what it doesn’t understand. For centuries, science chose to ignore the issue of emotions. And science continues to ignore the phenomenon of consciousness (i.e. awareness in the most basic sense ) because neither can it fully understand this phenomenon , nor can it explain how it works inside the brain. For the time being, let science be science and God be God. At the very core, both science and God function as one, because both seek the same purpose - survival and well-being of mankind.<br />
			For a layman like me, the questions such as the evidence of God’s existence and whether God created this universe and the species or they evolved are not worth pursuing. Even if the issue of Creation vs. Evolution is ultimately resolved, it will not be the end of God or Science. Both will continue playing significant roles in our lives as long as we continue being an existence made of mind and matter. So, instead of the big questions, what I prefer to be asked is whether I believe in God or not? To that, my answer will always be a resounding YES. I do believe that God does exist.<br />
			Belief, in itself, is nothing less than a miracle. Belief is healing, not only psychologically but also physically. Belief in God gives us the strength to follow a moral path. Belief is empowering. Belief is comforting. In times of crisis, belief in God has helped many, including me, maintain sanity in life.And my belief is not only limited to God; it extends to scientists and even brands, whose cause I champion. If I did not believe in scientists who said that Earth will not collide with other planets soon, at least not during my lifetime,<br />
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	<div style="border: 1px solid rgb(204, 204, 204); padding: 5px; width: 47%; float: right;">
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			<img alt="" height="454" src="http://www.newbusinessage.com/ckfinder/userfiles/Images/pic-ss.jpg" style="margin: 0pt; padding: 0pt;" width="280" /> <br />
			&nbsp;then I would have ceased to exist long ago as a result of anxiety disorder. In fact, most of the scientific truths are simply beliefs for the vast majority of people.<br />
			For most of us, the existence of atoms, quarks or strings are beliefs and not scientific truths because by definition we ought to have observed them empirically in order to account them as scientific truths. But common sense dictates that it is best to leave science to scientists, even if they come up with a new theory every now and then.<br />
			Let me clarify that this discussion is neither about God nor about science, and it is certainly not against the non-believers. They are as much right in their (dis-) belief as I am in my belief. This article is mainly about belief because this is what makes a brand out of a product. In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.Medical science presents a classic example of the power of belief -- the placebo effect, where patients get better by ingesting a sugar pill, while they believe (falsely) that they are getting medicine. This is what some scientists call the belief effect. In one study, a psychology professor at the University of Connecticut found that ‘eighty percent of the effect of antidepressants, as measured in clinical trials, could be attributed to the placebo effect.’ This is the power of belief.</div>
	</div>
	<div style="clear: both;">
		 </div>
</div>
<p>
	 </p>
<div style="width: 595px;">
	 </div>',
			'published' => true,
			'created' => '2010-12-24',
			'modified' => '2010-12-24',
			'keywords' => '',
			'description' => 'In most cases, there is nothing significantly different from one product to another. It is the belief in the brand created by marketers, mainly through advertising, that makes people actually feel the difference.',
			'sortorder' => '53',
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