MONEY
Indians, Chinese apply to build electric vehicle plants
Automobiles are Nepal’s second largest import after petroleum products in terms of value.
- KRISHANA PRASAIN
KATHMANDU,
As oil-less Nepal makes a sharp turn towards electric vehicles (EVs), neighbouring auto giants India and China have lunged forward to establish assembly plants in the Himalayan republic.
Almost a dozen Indian and Chinese investors have proposed to set up factories in Nepal following a jump in sales of battery-powered automobiles, the Department of Industry said.
In the last two fiscal years, two Indian and eight Chinese investors have submitted proposals to open assembly plants to build two-wheelers, three-wheelers and four-wheelers.
One India Technology of Haryana, India plans to spend Rs62.50 million on a factory in Hetauda to assemble electric motorcycles and scooters, three-wheeler vehicles and four-wheeler vans. The company aims to produce 100 vans, 100 three-wheelers and 500 motorcycles and scooters annually.
Gujarat-based Spurt Electric has proposed opening an electric two-wheeler assembly unit with an investment of Rs22.50 million in the Bhairahawa Special Economic Zone.
The company plans to assemble 2,000 electric motorcycles annually.
Several groups of individual investors from China have applied to open EV assembly plants in Kathmandu Valley and adjoining Kabhre district.
A group of five Chinese nationals have proposed to establish a Rs250 million plant in Lalitpur to assemble two- and three-wheelers. They plan to churn out 5,000 two-wheelers and 2,500 electric rickshaws annually.
Another group of five Chinese investors want to spend Rs250 million to build a factory in Kathmandu to assemble electric two- and three-wheelers. They have envisaged making 3,500 scooters and 3,000 rickshaws annually.
Similarly, a group of five Chinese nationals have proposed opening an assembly unit to produce two- and three-wheelers with an investment of Rs250 million. The company plans to assemble 3,500 electric scooters and 300 electric rickshaws annually at its plant in Kathmandu.
A group of four Chinese nationals have applied to invest Rs400 million on a factory on Sankhu Road to assemble 4,000 two-wheelers annually.
Another four Chinese nationals plan to open an electric two- and three-wheeler plant in Lalitpur with an investment of Rs200 million. They have proposed to build 3,500 scooters and 3,000 rickshaws annually.
According to the department, another group of four Chinese investors have proposed assembling electric two- and three-wheelers in Kabhre. They plan to spend Rs250 million on a factory to assemble 3,500 scooters and 3,000 three-wheeler rickshaws annually. One Chinese national has proposed opening an electric scooter assembly unit in Godavari Municipality with an investment of Rs30 million. The company plans to produce 500 electric scooters annually.
Two Chinese nationals have proposed assembling electric two- and three-wheelers with an investment of Rs40 million in Suryabinayak Municipality. They have proposed to manufacture 3,200 three-wheelers and 4,000 two-wheelers annually.
“Investors may have been attracted to open EV plants observing Nepal’s lucrative automobile sector,” said Sunil Rijal, vice-president of the Nepal Automobile Dealers’ Association (NADA).
Automobiles are Nepal’s second largest import after petroleum products in terms of value.
In fiscal 2018-19 before the Covid-19 pandemic, auto imports were worth Rs91.15 billion. Imports increased sharply to Rs123.69 billion in 2020-21 in the midst of the pandemic as people wanted to avoid crowds and travel in their own vehicles to prevent the spread of the coronavirus.
According to the Department of Customs, vehicle imports plunged to Rs51.96 billion in the last fiscal year after the government imposed an import ban to prevent the depletion of foreign currency reserves.
Industry insiders say that the government’s preventive measures and rising fuel prices prompted Nepalis to switch to EVs.
In the last fiscal year, the import of EVs was worth Rs12.51 billion with the country importing 10,964 units of four- and three-wheelers. The import of electric two-wheelers amounted to 11,184 units worth Rs1.09 billion.
Five years ago in 2018-19, electric two-wheeler imports totalled just 2,047 units worth Rs100.10 million. According to the Department of Customs, the import of four-wheelers amounted to 4,745 units worth Rs1.33 billion. EVs entered Nepal as far back as 1975, with the introduction of an electric trolleybus line in Kathmandu. Although the trolley bus was officially put to a merciful end in 2009 after years of gross mismanagement, actual service had stopped years earlier.
In 1993, battery-powered Safa tempos, a number of which can still be seen on Kathmandu’s streets, were introduced to replace diesel-run, smoke-pumping three-wheelers.
The Nepal government has introduced policies to encourage EV adoption. Unlike fossil fuel-powered four-wheelers, which incur taxes of up to 261 percent, private EV four-wheelers were taxed only 23 percent (10 percent import tax and 13 percent VAT) until the last fiscal year.
However, the government changed its policy in the current fiscal year. The customs duty on EVs below 50 cc is 10 percent. For 50-100 cc EVs, the customs and excise duties are 15 percent and 10 percent, respectively.
For EVs of 100-200 cc, the customs and excise duties are 20 percent each. For EVs in the 200-300 cc range, the customs and excise duties are 40 and 45 percent, respectively. For 300 cc EVs, the customs duty is 60 percent.
NADA Vice-President Rijal said the price of EVs would be even lower if they were assembled in the country.
“The government has announced tax waivers on the import of components to assemble EVs,” Rijal said.
The budget for the fiscal year 2022-23 has provisioned incentives for companies looking to establish electric four-wheeler plants in the country.
In the last fiscal year, the government announced a 40 percent income tax exemption for five years for electric car assembly units.
This fiscal year, the government has targeted to increase the per capita electricity consumption to 450-kilowatt hours with the aim of reducing fossil fuel imports significantly.
Total electricity production will reach 3,600 megawatts by the end of the next fiscal year, according to the budget statement.
“Charging stations will be expanded, and private sector financing will be facilitated to promote the use of electric vehicles,” the budget statement said.
Rijal said that considering EV sales and demand, Nepal is taking big strides. “But with frequently changing policies, investors are still uncertain.”
MONEY
Thailand receives Chinese tourists under a new visa-free policy
- ASSOCIATED PRESS
BANGKOK,
Top Thai officials welcomed hundreds of Chinese tourists at Bangkok’s international airport on Monday, the first day of a new visa-free entry programme that officials say will boost the country’s tourism industry that was badly damaged by the coronavirus pandemic.
Prime Minister Srettha Thavisin handed out gifts and posed for pictures as his tourism minister and other VIPs greeted about 300 travellers from Shanghai. The surprised tourists were entertained by Thai traditional dancers and drummers inside the arrivals area at Suvarnabhumi Airport.
“We are confident that this policy will greatly boost the economy,” Srettha told reporters. He said that the government plans to promote Thailand’s smaller cities as destinations for Chinese tourists to encourage them to stay longer and spend more. Addressing safety concerns among tourists, Srettha said it was the top priority of the authorities. There have been reports and rumours widely circulating on Chinese social media about fraud and kidnapping in Thailand.
A tourist from Shanghai, who identified himself only as Dai, said he was impressed with the “very lively” welcome ceremony at the airport, though he noted that the immigration officer who checked his passport did not immediately know about the temporary visa exemption policy. He said he plans to stay for two weeks and visit other cities besides Bangkok, including Chiang Mai and Phuket.
Peng Chunyu and Wan Yi, who arrived on the same flight, said it was a great policy for Thailand to allow visa-free entry for Chinese. The process was “very smooth,” said Peng. The two will stay for nine days and said they look forward to seeing Bangkok’s Grand Palace, Wat Arun temple and Chinatown.
The visa exemption, which also applies to visitors from the Central Asian nation of Kazakhstan, will be effective until February 29. Tourism Minister Sudawan Wangsuphakijkosol said there has been about a 30 percent surge in accommodation and flight bookings since the policy was announced. China more than a decade ago became a major source of tourists to Thailand, with almost 11 million visitors in 2019, accounting for 27.6 percent of all arrivals that year before the pandemic devastated the tourist market.
The government proposed the visa exemption measure due to concern that the number of Chinese tourists might be lower than expected this year because of strict visa requirements. The target number of arrivals from China had been revised from
5 million to 3 million after a report from the state Tourism Authority of Thailand that around 1.4 million Chinese tourists came in the first six months.
Tourism Authority Director Thapanee Kiatphaibool said on Monday that the authorities were confident the number of Chinese arrivals could hit 4 million-to-5 million after the visa-free programme was introduced.
MONEY
Striking Hollywood writers reach tentative deal with studios
- REUTERS
LOS ANGELES,
Hollywood’s writers union reached a preliminary labour agreement with major studios on Sunday, a deal expected to end one of two strikes that have halted most film and television production and cost the California economy billions.
The three-year contract still must be approved by leadership of the Writers Guild of America (WGA) as well as union members, before it can take effect.
The WGA, which represents 11,500 film and television writers, described the deal as “exceptional” with “meaningful gains and protections for writers.”
“This was made possible by the enduring solidarity of WGA members and extraordinary support of our union siblings who joined us on the picket lines for over 146 days,” the negotiating committee said in a statement Sunday.
The WGA settlement, while a milestone, will not return Hollywood to business as usual even if it is ratified. While writing may resume, the SAG-AFTRA actors’ union remains on strike. Writers walked off the job on May 2 after negotiations reached an impasse over compensation, minimum staffing of writers’ rooms, the use of artificial intelligence and residuals that reward writers for popular streaming shows, among other issues.
“We stuck it out,” WGA liaison Caroline Renard said on Sunday. “This is a union industry, and it’s about the people that make the actual product that makes these company billions of dollars.” One writer posted an image on social media of a picket sign that read simply: “The End.”
The only comment from the Alliance of Motion Picture and Television Producers, the trade group representing Walt Disney, Netflix, Warner Bros Discovery and other major studios, came in a brief statement with the union. “The WGA and AMPTP have reached a tentative agreement,” the statement said.
The proposed contract is still preliminary. The WGA’s negotiating committee said it would share details only after it receives final contract language. After that, the negotiators will vote on whether to recommend the deal to leadership, which must then decide if they will present it to members for a vote.
Hollywood’s dual strikes had shut down production of movies and TV series and sent late-night talk shows into re-runs. Efforts to restart daytime talk shows without writers, such as “The Drew Barrymore Show,” collapsed this month, in the face of criticism from striking writers and actors.
At picket lines, protests took on the rhetoric of class warfare. Writers assailed media executives’ compensation and said working conditions had made it hard for them to earn a middle-class living.
“It’s been a long road, and I’m ready to take the next step forward, which is just like healing for our guild and getting back to work on ourselves,” “Harlem” writer Brandon K Hines said on Sunday. The work stoppages took a toll on camera operators, carpenters, production assistants and other crew members, as well as the caterers, florists, costume suppliers and other small businesses that support film and television production.
The economic cost is expected to total at least $5 billion in California and the other US production hubs of New Mexico, Georgia and New York, according to an estimate from Milken Institute economist Kevin Klowden.
Four top industry executives—Iger, Warner Bros Discovery CEO David Zaslav, Netflix co-CEO Ted Sarandos and NBCUniversal Studio Group Chair Donna Langley—joined negotiations this week, helping to break the months-long impasse.
As with past writers’ strikes, this job action responds to Hollywood capitalising on a new form of distribution—and writers seek to participate in the newfound revenue. The 100-day strike in 2007-08 focused, in part, on extending guild protections to “new media,” including movies and TV downloads as well as content delivered via ad-supported internet services.
This time around, a central issue is residual payments for streaming services, which writers said represented a fraction of the compensation they would receive for a broadcast television show. Writers also sought limits on AI’s role in the creative process. Some feared that studio executives would hand a writer an AI-generated script to revise, and pay the writer at a lower rate to rewrite or polish it. Others expressed concerns about intellectual property theft if existing scripts are used to train artificial intelligence.
MONEY
Devyani International Nepal opens first Special KFC outlet in Kathmandu
Bizline
KATHMANDU: Devyani International Nepal Pvt Ltd announced its first special KFC outlet in Kathmandu, operated majorly by specially-abled speech and hearing-impaired women workforce, on the occasion of International Sign Language Day. The restaurant is staffed with a passionate and dedicated team of ten specially-abled individuals, well trained and equipped with skills to manage an entire restaurant, reads the press release issued by the company. This groundbreaking initiative marks a significant milestone in DIL & KFC’s journey towards fostering a culture of an inclusive organisation and creating equal opportunities for all. (PR)
MONEY
India to auction Jammu and Kashmir lithium reserves in few weeks, source says
Bizline
NEW DELHI: India’s federally administered region of Jammu and Kashmir will auction its lithium reserves over the next few weeks, a government source with close knowledge of the matter said on Monday. India, which has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries, in February found its first lithium deposits in Jammu and Kashmir with estimated reserves of 5.9 million tonnes. “The auction will happen soon and some overseas miners have shown interest,” the source said, declining to be identified. The federal mines ministry did not immediately reply to a Reuters email seeking comments. The source also said that KABIL, a state-owned joint venture formed to scout for minerals overseas, was in the “final stages” to secure a few lithium blocks in Argentina. Discussions with the Chilean government were also underway to secure lithium blocks although talks were still in early stages, the source added. (REUTERS)
MONEY
India’s monsoon starts delayed retreat
Bizline
MUMBAI: India’s monsoon rains started withdrawing from the northwest of the country on Monday, more than a week later than normal, the state-run India Meteorological Department (IMD) said in a statement. The monsoon, the lifeblood of India’s $3 trillion economy, delivers nearly 70 percent of the rain needed to water its farms and recharge reservoirs and aquifers. The monsoon generally begins in June and starts to retreat by September 17 but rains continued this year, helping to reduce a precipitation deficit after the driest August in more than a century hit some summer crops. Monsoon rains were 9 percent below average in June before rebounding to 13 percent above average in July. The weather office then registered 36 percent below average rains last month. “The southwest monsoon has withdrawn from some parts of Rajasthan. Conditions are favourable for the withdrawal of the monsoon from more northern states in the next one week,” a senior IMD official said. (REUTERS)