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Royal coup gives 16 firms reprieve from Maoists
Publish Date : 2/25/2005 10:11:00 AM   Source : South Asia News Onlypunjab.com

Though widely condemned by the international community, the royal coup in Nepal has given 16 leading business houses - including some India-Nepal joint ventures - a reprieve from Maoist guerrillas.

Last month the insurgents had announced they would close down 16 prominent business ventures indefinitely from Feb 22.

The threatened companies included Indian tobacco major ITC's join venture in Nepal, Surya Nepal; Sipradi Trading Company, dealer for Indian cars; Soaltee Crowne Plaza, the first luxury hotel in Nepal; and Himalayan Goodricke, another India-Nepal joint venture.


 

Some of the companies on the hit list were targeted last year when the rebels closed them down for over a week.

The diktat was issued by a trade union of the rebels, the banned All Nepal Trade Union Federation that had been behind the earlier closure as well.

This time, the rebels were demanding a minimum wage of Nepalese Rs.5,000 each for employees and implementation of the conditions agreed upon last year.

Some of the threatened companies, like Soaltee, had tried to resist the call for closure last year. But Soaltee was brought to its knees after bombs went off within its compound. Soaltee's capitulation led to the other threatened companies too suspending activities on their own.

The mass surrender had been a sore point with the then Sher Bahadur Deuba government that had been urging the threatened companies to carry on under the protection of security forces.

Though the Maoists had not issued any warning directly to the companies, the word spread through the media. With the fresh ultimatum this year, the 16 companies had been fearing further losses.

On Feb 1, British envoy to Nepal Keith George Bloomfield called a meeting of businessmen at the embassy in Kathmandu to discuss the imminent threat. Britain is current chair of the Industrial Security Group in Nepal that also includes India, the US and France.

However, the same day, Nepal's King Gyanendra dismissed the Deuba government, assumed executive powers and imposed a state of emergency, suspending fundamental rights.

Since then, the media has been reined in with the directive not to carry reports that might affect the morale of the army. Also, Nepal's private radio stations that were the fastest source of information on what was happening outside Kathmandu have been gagged, being asked to broadcast only entertainment programmes.

Ironically, the media gag prevented dissemination of further information regarding the ban on the 16 industries and they are carrying on.

But it's only partial victory for the new regime.

The Maoists started an indefinite blockade of Nepal from Feb 13. Despite enhanced security patrols on highways, the flow of vehicular traffic has dropped dramatically, cutting off supplies from India and distribution of manufactured goods within Nepal.

Some of the 16 companies are already feeling the effect of the blockade, with their raw material stock dwindling and factories unable to reach retailers.



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