KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.

Govt to remove dollar fare imposed on domestic flights

The government is making preparations to remove the dollar fare imposed on domestic flights.

A meeting of the Air Fare Review Committee held recently has recommended the removal of the dollar fare.

Announcing the annual progress report of the Ministry of Culture, Tourism and Civil Aviation on Tuesday, Minister Yogesh Bhattarai said that the dollar fare imposed on domestic flights will be removed.

Minister Bhattarai informed that the decision would be taken only after discussing the recommendation of the committee and the airline operators. However, airline operators are not satisfied with this decision.

If the dollar fare is removed, the fare for domestic flights will increase for Nepali people.

Ncell suffers loss of Rs 4.786 bln in 3 months

Private mobile service providing company Ncell has suffered a huge loss due to the coronavirus pandemic.

According to the company, it lost Rs 4.786 billion in the period of three months due to the coronavirus pandemic. Ncell had made a profit of Rs 14.326 billion in the second quarter of 2019 according to a report published by its parent company Axiata.

In the same period of the year 2020, Ncell’s income went down to 9.54 billion. The company had suffered a loss even during the first quarter of this year compared to the same period in 2019.

In the first quarter of the previous year, the company’s income was Rs 13.527 while the income of the company during the same period of the current year 2020 is put at Rs 12.039 billion.

Based on this above data, Ncell lost Rs 1.488 billion in the first quarter of the current year. Ncell’s recently introduced data package scheme, however, has given relief to the company.

FCAN refutes involvement in rail contract

The Federation of Contractors’ Association of Nepal (FCAN) has refuted its involvement in the contract process involving railways in the country.

The contractors have no role and involvement in it as it is the State authorities that determined the eligibility of the proposals as per the prevalent law and procurement act, a statement issued by the FCAN General Secretary Roshan Dahal said.

The statement added that there was no significance of dragging FCAN into the contract process in which it has no role.

It added while alerting one and all towards the efforts being made to malign the image of the FCAN.

In the call for bidding announced by the department of railways, more than one hundred construction companies have participated as joint venture companies. Hence, it is contradictory in itself to say that only a few contractors were involved in the bidding process.

Railway construction works picking up speed amidst lockdown

The District Administration Office Mahottari has imposed prohibitory order throughout the district to contain the spread of coronavirus.

The restrictive order that was issued on August 17 for 10 days has been extended by five more days. However, one can see workers busy in their work constructing the Jayanagar-Janakpur-Bardibas railway project amidst the lockdown.

Big tippers can be seen fetching earth while leveling machines are at work on the railway track. “We will complete the work under our responsibility within two months,” said Ram Binod Mandal, the project manager of Kalika Raman JV Company which has been awarded the contract for laying gravel and constructing bridges and causeways of the railway project.

Construction works are ongoing on some sections of the 52 kilometers stretch out of the 69 kilometers length of the Jayanagar-Janakpur-Bardibas Railway while they have been completed at some other sections.

Construction has been completed on the 34 kilometers section of the railway from Jayanagar to Kurtha, ready for the operation of the train service.

(Compiled and prepared by Nitish Lal Shrestha)

Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.