Marred by uncertainty

Despite being self reliant, the plywood industry face a hard time


Sujata Awale
Kathmandu

With the ongoing protest in Tarai, the plywood industry is facing a hard time. Ninety per cent of the total factories are not operational for a month now due to continuous bandh. With low production, the market is gradually witnessing a shortage of products. The industry which was going through a difficult situation since the earthquake, is further marred by the Tarai unrest.

Moreover, the sluggish real estate industry, stagnant economy and political instability have led to a dip in demand.“We face difficulties in distributing products in the market as our factories are not operational due to the strike,” said Devananda Sarawagi, Managing Director of Sarawagi Ply Industries. He further added, “The economy is stagnant and the real estate business is not doing very well.

Also, the plywood market is competitive. All these factors add to our burden.” Citing that they used to export plywood to India, he said, “With the existing situation and other problems, we have not been able to export for a year now.” Sarawagi stated that political stability is must to spread positivity in all industries. He further said, “The industry also faces problems of labour and load shedding that ultimately hikes  the cost of production.”Utis tree which is regarded as soft wood is the main raw material for plywood manufacturers.
These trees are generally found in Ilam, Phidim, Panchthar, Dhankuta, Hile, Sindhupalchowk, Dolakha among others. Additionally, other needed raw material and chemicals are imported from India.

“We are witnessing a growth in demand of five to six per cent every year. However, this year, we feel that the business will face losses due to the political instability,” said Pradeep Chaudhary, Vice President of Nepal Plywood Manufacturers Association (NPMA). Citing that the plywood industry is self reliant, he said, “Domestic manufacturers are producing various grade products such as A, B, C and D as per their usage. And three per cent of total production is exported to India.”

According to the NPMA, there are 50 plywood manufacturing factories which directly employ 10,000 employees. Chaudhary further informed that five other companies are in the pipeline for investment in the sector. Citing that there is unhealthy competition in the market, he stated, “Duplication of logos is the main problem. Many companies copy from established brands and sell low quality products at low price which creates imbalance in the market.” According to him, the industry has Rs seven billion turnover annually while still operating at 60 per cent of installed capacity.

Lack of skilled manpower, problems of trade union and load shedding are other hassles faced by the industry. “We have a severe crunch of skilled manpower in the country. Every year we have to import skilled manpower from Bihar and Uttar Pradesh,” he informed. 

“The business of plywood has dipped by as much as 50 per cent at present due to the ongoing strike in Tarai and as an effect of the earthquake,” said Ganesh Pokharel, Proprietor of Shikar Trade Link. He said that as the government has banned the construction of residential buildings, it directly affected the demand for plywood. 

According to him, plywood is basically used for manufacturing furniture and shuttering while constructing buildings. Citing that the supply has also dipped, he said, “The demand for furniture has gone up but we could only fulfill 30 per cent of that due to the bandh.” 

According to him, earlier they used to supply five trucks of plywood a month.Pokharel said that Kathmandu comprises 51 per cent of the market for plywood business and other parts of the country account for 49 per cent. Stating that customers are not aware about quality, he said, “Customers seek affordability rather than quality. 

This allows many unprofessional players to penetrate the market.” There are branded products such as Duro, Mayur, Sagun, Surya, Greenply, Himalayan et cetera and local products in the market as well which differ in price by 40 per cent.

Published on September 20, The Himalayan Times, Perspectives
http://epaper.thehimalayantimes.com/epapermain.aspx?queryed=9&eddate=9/20/2015

Is Pancheswhar multipurpose project heading in the right direction?

Photo Courtesy: Mahendra Bahadur Gurung

Sujata Awale

Kathmandu

The Mahakali Treaty between Nepal and India was signed in 1996 and the main highlight of the treaty was to develop the 6,720 MW Pancheshwar Multipurpose Project (PMP). Though discussed and talked about the many benefits which include hydropower, irrigation, fishery, flood management, et cetera, the project never really budged until 2009.

In 2009, a Joint Committee on Water Resources was formed which was headed by energy secretaries of Nepal and India. Held in Pokhara, that committee agreed to construct a re-regulating dam, Chief Executive Officer (CEO) nomination through open competition and establishment of a project head office in Mahendranagar.

However, it was only in July 2014 with the Indian Prime Minister Narendra Modi’s visit to Nepal that the project gathered full steam with commitment to develop the PMP on a 50/50 sharing basis. To push forward this mega project, both governments decided to establish a eight member Pancheshwar Development Authority (PDA) in November 2014 and with both energy secretaries as co-chairpersons. Of the eight positions, Nepal got to appoint the position of CEO, Legal Executive Director, Environment Executive Director and Administration Executive Director, while India got the post of Acting Chief Officer (ACO), Technical Executive Director, Finance Executive Director and Rehabilitation and Resettlement Executive Director.

Nomination conflict
It was decided to complete filling these executive member positions by September 2014 but due to conflict of interest in the nomination process it has been delayed by almost a year. While Nepal was lingering in the appointment process, India, as per the Memorandum of Understanding (MoU) initiated a detailed project report (DPR) by WAPCOS.

Though the CEO was to be appointed through free and fair competition, Energy Minister Radha Gyawali appointed Mahendra Bahadur Gurung as the CEO on June 5. Likewise, Dilip Kumar Sadaula was appointed Environment Executive Director, Rudra Sitaula as Legal Executive Director and Babu Ram Adhikari as Administration Executive Director. On the other hand, the Indian side nominated executive directors through free competition.

“Although Nepal has appointed the CEO, it could lead to a loss for the country,” said DB Singh, Former Director General of the Department of Electricity Development. Singh who is also a Former Project Director of Pancheshwar Project, further said, “PMP is a mega storage type hydropower project.

But either due to the government’s ignorance or indifference, it has nominated an irrigation engineer as CEO for this massive hydel project who is himself ignorant about the issue.” Comparing the appointees from the Indian side, he informed that both ACO and Technical Executive Director are experienced hydro engineers with a proven track record.

To lead a multilateral mega project experience and technical know how is a must. Singh said, “For a football match if you send basket ball players what can you expect? This is what the government has done by choosing an inexperienced CEO for such a major hydro project.” He further pointed out that due to lack of political will and vision among team players even in 1999 that led to the Nepal-Indo Joint Project Office collapse in 2002 without finalising the DPR. “I suspect the PDA will face the same fate as again the government has nominated the wrong person,” he opined.

On this, CEO of PDA Mahendra Bahadur Gurung said, “Pancheshwar is a multipurpose project that includes hydropower, irrigation and flood control. As I have served in these three sectors as the director general, it would not be fair to question my ability and experience.” He further said, “I was on a decision making role in previous posts which made me more competent for this post and I believe I will run this project smoothly.”

Project prospects

PMP is a bi-national storage type hydropower project to be developed on the Mahakali River bordering Nepal and India. The 6,720 MW project will produce an annual average energy of 12.32 billion units and a live storage of 6.56 billion cubic metre of fresh water.

There will be equal sized underground power houses of 3,240 MW constructed on each side of the Mahakali river in India and Nepal. Moreover, the project will also offer benefits of regulated water for irrigation in Nepal and India and control flooding.

Singh informed that the project cost is determined at Rs 500 billion as per the DPR conducted by the Pancheshwar Project in 2006-07.

According to him, Nepal can get benefits of Rs 34.50 billion from electricity, Rs nine billion from fisheries, Rs 5.55 billion from irrigation of 93,000 hectors of agricultural land, Rs 4.42 billion from carbon trading and Rs four billion from other benefits.

“The total of benefits after project construction will be Rs 53.41 billion which should not be decreased by any means in the present context,” he stressed. However, it is presumed that the project will dislocate 22,765 people on the Nepali side and 60,000 people on the Indian side.

“PMP is a highly economically viable project which can create a big difference in terms of electricity production, water issues, investment scenario and psychological effect,” said Bishal Thapa, Vice Chairman of the Energy Development Council. However, he pointed out, “The project has been talked about since the last two decades but it has not gone smoothly.

For the smooth run of the project, political space and backing for implementation is a must. Both countries political leaders should acknowledge this fact about the benefits and put this project on high priority.”

Stating that the formation of PDA with a full committee is a good sign, Thapa further said, “Formation of the authority is not the end point for development of the project. From past experience, we have realised that those heading the project had no voice.” He stressed that the head of the authority should have the capability to communicate clearly and strategically, be more proactive than passive and reactive. According to him, Nepal should learn from the past and not repeat the same mistakes.

The project demands strong political will, studying of the situation and tie up with not only the central government of India but also with the state government at the project area.

Crawling ahead
With the appointment of the CEO work for the project head office has started. According to Gurung, they are planning to establish a Corpus Fund of IRs 200 million from each country. He said, “WAPCOS is working on the DPR and as the executive committee has been formed we will conduct meetings with them and scrutinise technical aspects.” He said that the DPR will be finalised on November 2015, two months later than the stipulated date.

Optimistic about project implementation, Gurung targets to at least finalise the DPR, procurement of work and laying the foundation in his three year tenure. Citing that it is a dream project of both countries, he said, “Political will is most important to implement the project.”

As per the MOU between Nepal and India, the CEO and Finance Executive Director will not be from the same country. The tenure of each member will be three years with rotation between Nepal and India for the CEO.

Published on The Himalayan Times Perspective on September 13

 

  http://epaper.thehimalayantimes.com/epaperpdf/1392015/1392015-md-hr-17.pdf 

Furniture business hit by political unrest

Traders worried about the festive Season as products are stuck at different customs

Himalayan News Service

Kathmandu

Be it domestic manufacturers or importers of furniture, both are facing a tough time due to the unrest in Tarai. Manufacturers are hassled  by the lack of raw material, which largely comes from the Tarai, while importers don’t have options other than importing furniture through the border (Tarai). Moreover, furniture traders are also worried about whether they will get to import products for the festive season, which is the prime time for business. According to traders, the sale of furniture will dip significantly if they do not get products on time.

Citing that the furniture market witnessed 15 per cent growth last year, President of Nepal Furniture and Furnishing Association (NFFA), Kabindra Joshi said, “We doubt we can retain the same growth this year due to the ongoing strike in Tarai.”  Informing that around 50 containers with furniture are stuck at various custom offices in Tarai due to bandh, he said, “We were compelled to postpone our annual Furnex Expo 2015 that slated for October 1.” Stating that the furniture business was not affected by the earthquake, he said, “If the Tarai bandhs continue, it is for sure the industry will be hit hard. However, we are hopeful that the situation will be back to normal soon.”

Citing that the furniture industry is becoming dependent on imports, Joshi said, “Due to lack of skilled manpower, electricity and other raw material, domestic productions are gradually declining and traders are now attracted towards importing readymade products.” According to him, China, Thailand, Malaysia and America are prime countries from where furniture is imported.

The Nepali furniture market is separated into three segments — domestic, Chinese and branded products. Affordable pricing, aesthetic look and fine design are reasons why customers are gradually opting for imported furniture. However, the charm of domestic products is still alive owing to its durability, quality and design. According to him, 60 per cent of the furniture market is dominated by imported furniture whereas domestic furniture enjoys 40 per cent market share.

Marketing Director of Bira Furniture at Patan Industrial Area, Sarju Shrestha said, “We have not been able to import raw materials due to the bandh whereas the business was already affected by the earthquake.” Informing that the demand for furniture dipped during the earthquake, he said, “We are optimistic about the upcoming festive season only if the Tarai unrest is resolved.”

According to him, local, branded and Chinese furniture have their own separate markets with their individual merits and demerits. “There will be price hike in furniture products by 10 to 15 per cent for domestic products owing to labour crisis and lack of raw material available due to the present situation,” he added.

“The demand for branded furniture was down for the last two months because of the earthquake,” said Nikhil Tuladhar, Marketing Manager at Index Furniture, adding that the business is hit hard due to the bandhs as products are stuck at Birgunj Customs. Tuladhar further said, “Customers are aware about branded products in furniture and value them for quality and design.”

Published on THT Property Plus, September 12

http://epaper.thehimalayantimes.com/epaperpdf/1292015/1292015-md-hr-14.pdf  

 

Carrying traditional essence and safety together

Lack of periodic restoration and maintenance of structures is the major cause of structural weakness

Photo: THT

Himalayan News Service

Kathmandu

 
Many traditional buildings either collapsed or were partially damaged by the deadly earthquake of April 25. After the quake people have developed the feeling that a reinforced concrete building is much durable and quake resistant than traditionally built buildings. However, experts stated that both traditional as well as modern buildings can be durable and earthquake resistant if built adopting seismic resistant technology.

Any structure built violating or without taking care of the engineering norms are vulnerable to possible damage by quakes. Professionals stated that even  masonry buildings following norms can last for many decades. However, such structures build by neglecting structural strengthening, addition of stories without considering its capacity to bear load are the main cause for their collapse.

There is a clear indication that lack of periodic restoration and maintenance of structures had a major affect on the endurance of structures during earthquake. “People were not aware about periodic structural strengthening and retrofitting of their houses,” said Senior Structural Engineer Rajan Suwal stressing on the need to have a periodic study on the condition of structures and conducting restoration with updated traditional techniques to sustain the buildings. According to him, the government should learn a lesson from the past and should work to strengthen the existing buildings.

“One should not feel that traditional buildings are weaker than reinforced buildings as both structures have withstood and collapsed as well during the quake,” Suwal said, adding that it depends on the techniques being used to construct the building. He stressed on the need to restore traditional buildings to preserve the essence of the culture.

Citing that there could be shortage of required construction materials like timber, traditional styled bricks, mud with workmanship to rebuild massive structures, Suwal said, “The government should give priority to reconstruction and give subsidies if anyone wants to build their residential houses in a traditional way.” Stating that there is a lack of skilled manpower to work with traditional structures, he said, “If the government prioritises work and provides training, the available resources will be enough to work promptly.”

“The raw material and quality of products are a challenge to build masonry buildings,” he said, adding that timber being expensive, the government should work to make it accessible. According to him, constructing traditional house becomes 25 per cent more expensive than constructing using reinforced building.

Researcher in Structural Earthquake Engineering Dipendra Gautam said that reuse of rubble can contribute to restoration of traditional buildings. “We have found that the majority of masonry buildings failed to tie middle walls and front walls and that resulted in their  fall,” he said, adding, “In this regard, if the binding component is done properly, most traditional buildings can be safe and long-lasting.” Moreover, he said that introducing seismic strengthening technology to abide two walls with steel rebars can increase the durability and sustainability of the building.

According to Gautam, the government should conduct special research on typical Nepali styled traditional masonry buildings as the National Building Code lacks specific parameters and design. Pointing out that there lacks timely maintenance and repair works on traditional buildings, he said, “It is very important to elongate the life of these buildings. And the other silly mistake that we all make is haphazardly piling up storeys, which weakens the building.”

Citing that the traditional look of heritage sites and the city is important for preservation of the ancient art and architecture, he said, “The government should focus on maintaining traditional buildings and take out the framework to reuse available construction materials and seismic strengthening technology.”

Published on September 5, 2015, The Himalayan Times THT Property Plus

http://epaper.thehimalayantimes.com/epaperpdf/592015/592015-md-hr-14.pdf