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Chilime Hydropower Project has constructed a 53,000 cubic meter pond to generate 20 MW of peaking power. The peaking power can be generated continuously for three hours.

The company recorded a profit of Rs.385.4 million as net profit in the fiscal year 2004-05 from which it is distributing final dividend to its shareholders at the rate of 20 per cent of the paid up capital. In 2003-04 the profit was Rs. 273.8 million. The company is planning to issue 24 per cent of its shares to the general public in the coming fiscal year. It had recently issued 25 per cent shares to the current and ex-employees of the company and the Nepal Electricity Authority.

According to the Annual Report of the company to be presented in the forthcoming AGM, the company is also investing in Upper Chilime and Upper Trishuli Hydropower Projects.

Chaudhary Group's product Wai Wai will be produced in Uttaranchal, India too. The plant is planned to be commissioned by March 2007 at an investment of INR. 250 million. Wai Wai is being produced also from the Sikkim plant set up with an investment of INR. 700 million and the first consignment of the products from the Sikkim plant has already hit the market.

According to Nirvana Chaudhary, Director of Chaudhary Group, the Indian factories are set up with technical collaboration of CG Foods Nepal (P) Ltd. as it is not possible under the present Nepali laws to make financial investment abroad. The financial investment is made by Cinnovation, a Singapore-based investment banking and private equity participation company.

Wai Wai in India is called Wai Wai 1-2-3 and the company has signed Indian football star Bhaichung Bhutia as the brand ambassador.

On the basis of the data published recently by the Central Bureau of Statistics (CBS), Nepal Rastra Bank has concluded that the Gross National Disposable Income (GNDI) or the amount of gross income that the Nepalis can actually spend, is likely to increase 12.3 percent this year at current prices.

GNDI is the total income available to residents for either final consumption or saving and it forms the main basis to analyze the spending decision and flow of fund into the country.

GNDI had increased only 9.1 percent last two years. The growth in GDP at current prices was, however, 7.4 and 9.3 percent in 2003/04 and 2004/05 respectively.

As GDP measures the income derived from domestic production, it does not cover overall income received from abroad. GNDI is obtained by adding net current transfers received from abroad (TRf) to gross national income (GNI), which is equal to GDP plus net factor income from abroad. Factor incomes from abroad include (a) income/returns/interest from capital investment (b) labor income of seasonal workers (c) service income received from land and building rentals. Net transfer income is the difference between income earned from nonresident and transfers remitted abroad.

The high increase in GNDI is mainly because of increased workers’ remittance which occupies a significant share in the net transfer income of Nepal from abroad. Workers’ inward remittance is estimated to surge by 45.3 percent this year. In absolute terms, the workers’ remittance in 2004-05 was Rs. 65.54 billion, according to the Rastra Bank. It is expected to expand by 45.3 percent in the current year.

Hyundai Motors India has recently announced that it will hike prices of all Hyundai models including its brand Santro Xing by the end of June 2006 due to surge in fuel prices which has led to increased freight and logistical costs. Prices of raw materials like plastic and rubber have also increased recently pushing up the production costs. This would also affect the prices in Nepal.

l Chilime Hydropower Co. Ltd. held the first AGM after the public issue. The AGM approved 20% cash dividend to the shareholder for the fiscal year 2004-05. This 20% dividend include 10% interim dividend, which has already been paid to the shareholders and 10% as final dividend. During the fiscal year 2004-05, the company increased its net profit by 41 percent over the previous fiscal year’s Rs. 274 million. Increase in sales revenue and decrease in interest expenses were the major contributors to push the net profit up.

At the recently held AGM of Capital Merchant Banking and Finance Ltd., its 4th annual report was presenting to the shareholder for the fiscal year 2061-62. Over the period net profit of the company decreased by 40 percent from Rs. 5.24 million. Increase in interest expenses comparatively at higher rate than the increase in interest income caused profitability to fall down.

l FNCCI has decided to present FNCCI National Excellence Award at its 40th AGM tentatively scheduled to be held in late July or early August.

According to FNCCI, over 15 applications were already received for the Award by the June 13 deadline. One company is selected from all the small, medium and large categories for the trophy while the best from each category will receive letters of commendation.

Started to be presented since the year 2000, the Award that comprises criteria included in Malcolm Baldrige Award and Demming Application Award, was presented in the past on the occasion of the Industry Commerce Day on Chaitra 28 (which normally falls on April 10). But this year it was postponed as the day could not be celebrated due to the people's movement.

So far Surya Tobacco Company (now Surya Nepal ) and Standard Chartered Bank Nepal have received the trophy of the award on 2001 and 2004 respectively. In 2000 and 2002, some companies were presented with letters of commendation only as the contestants were not found fulfilling the selection requirements for the trophy. There was no selection process for the award in the year 2005 as the business environment was not suitable for the companies to fulfil the requirements.

l The Nepal India Chamber of Commerce and Industry (NICCI) has presented NICCI Excellence Award to its selected members. In the recently held AGM of the chamber, the award was presented to Surya Nepal from among the large industries, Nepal Pharmaceutical Lab from among the small and medium industries, Sipradi Trading from among the service industries and Everest Bank Ltd. from among the financial services companies. The AGM reelected Arun Kumar Chaudhary as the NICCI president.

l The 12th AGM of Nepal Ghee Oil Manufacturers Association has elected the outgoing Vice-President of the Association Kamal Kumar Begani as its new president for next two years. Bikash Dugar and Shyam Kumar Lohiya are the new first and second vice-presidents respectively while Manish Kumar Agrawal is the Secretary General and Nanda Kishor Mundada is the treasurer.

During the inauguration of the AGM, outgoing president Raj Kumar Agrawal called for initiatives to increase the quota for India export from the present 100,000 MT per year while renewing the Nepal-India Trade Treaty slated to expire on March 5, 2007 .