Sustainable Tourism

Giving Something Back, palmuholidays.blogspot.com is committed to sustainable tourism and true sustainability. It was commitment formed when the company was established, and today, in the face of a multitude of threats to the Environment, our commitment is stronger than ever. We aim to ensure that our destinations retain their natural character and cultural diversity for Future generations. This vision can only be achieved with the support of all of our travelers and business partners.

Environmental Sustainability

• True sustainability in all aspects of our business planning & Operations. Specifically palmuholidays.blogspot.com tour operations are managed in a Way where the natural and cultural values of the host region are Undiminished in the long-term.
• Where possible,palmuholidays.blogspot.com engages in partnerships with local Environmental groups and /or land managers to actively campaign for Conservation or promote environmental protection and /or rehabilitation

Responsible Travel

palmuholidays.blogspot.com ims to maximize the positive benefits of tourism for Host communities. This includes training and employment of local staff, using local suppliers and assisting in the development of sustainable Local businesses.

We actively minimize the negative effects that tourism can have by Ensuring that tourism does not divert resources away from local Communities or drive up prices on local resources. palmuholidays.blogspot.com  provides Opportunities for cultural exchange, where locals and visitors alike can Share and learn from each other in an environment of mutual respect. Community Project Travel program where we organize for our travelers to Spend time in disadvantaged villages upgrading basic facilities such as Health, education and water access. palmuholidays.blogspot.com   strives to educate our Travelers about the destination and its local cultures as Well as providing guidelines on appropriate behavior to minimize impact.

Volunteer Program in Nepal

Volunteering is one of the most enjoyable and amiable things that you can Do, not only for yourself but for the people you are helping along the Way. In Nepal, partaking in a volunteer program gives you a wonderful and unique opportunity to live and interact with a local family, gaining a firsthand insight into the culture and customs of this unique Himalayan Country. You will also get to play an important role in aiding a small Community in gaining an edge in education. It's often the case in rural Areas that education is under-funded and poor. By volunteering in one of the many schools in our programs, you are offering your teaching experience and your ability as an English speaker to help educate not only the children, but the teachers as well. Along your journey you will form many life-long friends and memories that you will be able to tell your grandchildren about.

By donating your time and experience you are giving more than money or words can express; you will experience the joy in the children's faces and this will communicate to you more thanks than a thousand words could ever express.

Volunteering Program

First Week: When you arrive in Kathmandu we will put you up in hotel with bed and breakfast. Your first week will be spent taking basic language and cultural education classes to prepare you for your home stay. You will also be taken sightseeing around the valley.

2nd to 4th Week: We will take you to the area of your placement and introduce you to the family you will be staying with and to the school and its teachers. You will be given a teaching schedule to follow during this period.

5th Week: Bid farewell to the school and your host family and return to Kathmandu. You will now enjoy a 5-day program: 2 days rafting and 3 days in the Chitwan national park. You be able to relax after your experience and share your experiences with other volunteers.

You can expect the placement will be in a remote area. You will have your own room but you will have an outside squatter style toilet. You will need to supply your own toilet paper, and you should be able to purchase it from the local store. You will be living with a traditional family and should respect their culture. This means that you should dress appropriately and not drink or smoke unless offered. Houses are communal places so don't expect your room to be a private zone; other family members will be coming in and out a lot. It's not common for rural houses to have shower or bathing facilities. There will be places to wash in a river or at the local water pump. It's helpful if you bring along a sarong for bathing in. And don't worry - the lady of the house will show you how it's done. Also there will be no laundry service. You will be shown where and how to wash your clothes. The schools or villages may require you to walk some distance to reach them; you should have good basic fitness. The food will be simple, but you will not go hungry. Be prepared to eat rice and plenty of it. It's not common for most families to eat meat regularly so the food is mostly vegetarian. It's all fresh and healthy. Water for drinking can be purchased in local villages; if it’s not available in yours, we will make sure you have a good supply. In some cases the water may be drinkable, or you can take tablets to treat it. In most cases you will be able to contact us any time by phone. We will check up on you regularly anyway, but don't expect to find internet facilities.

The facilities may be basic and limited, but you should look upon this as the experience of a lifetime, to be able to live with and experience how other people have lived for generations. Not only are you offering your services as a teacher to the students, but this will also be a learning experience for yourself.

What's included?

• During your placement you will live with a host family, where all your meals will be included.
• In Kathmandu you will stay in a hotel with bed and breakfast
• Sightseeing around Kathmandu
• Basic language course and cultural education about Nepal
• All road transfers
• Two days rafting at Trishuli Rivers
• Visit Tharu Village and Jungle safari in Chitwan
• Airport pickup and transfers

What to bring?

• Teaching aids and books are always useful.
• Pens, Pencils and paper
• Toiletries
• First aid kit
• Clothing: Ladies should wear clothes that cover the shoulders and knees. In Nepal, and especially in rural areas, it’s not considered appropriate to wear revealing clothing - belly buttons, cleavage and low fitting jeans are definitely not appropriate. In schools most Nepalese women wear either a kurta or a sari. A kurta is loose, comfortable pants with a dress-like top. It's very easy and cheap to get them made in Nepal or you can buy them ready made. Men should wear shirts and slacks, but not shorts. As the weather in Nepal can be quite hot you should wear light, loose cotton clothing so you will be comfortable. Men- men should wear shirts and slacks, no shorts above the knees. As the weather in Nepal can be quite hot you should wear light, loose cotton clothing so you will be comfortable.
• Copies of important documents-passport, insurance policy, birth certificate etc.
• Sturdy day pack and back pack
• Personal items-Walkman, iPod, diary
• Sturdy foot wear, one pair and light sandals or thongs
• Digital Camera

Requirements

We recommend you have basic teaching skills or are a student teacher but it's not necessary. You must have a visa valid for your length of stay in Nepal. (We can assist you with extensions.) Please feel free to write us an email if you have any question about above

Information.

Contact us at,

palmuholidays.blogspot.com  

Phone: 977-1-9843081190

Email: visionnepal3@gmail.com

Websites: www.palmuholidays.blogspot.com

Introduction

Nepal is rich in so many ways in its topography for those interested in climbing, trekking and adventure and in its culture and heritage for those interested in discovering another way of life, so we thought it was time to tell you about special 'interest Nepal' and what you could find here to learn and experience, and even immerse yourself in.

In Art, Craft and Culture we have covered many areas of interest, such as bronze making, wood working, jewelry, art, craft, pottery and textiles to name a few, with others just as inspiring and fascinating. All of these subjects can be observed in a number of ways, either from the aspect of just an observer or shopper, or even from the point of view of joining a workshop or training program.

Body, Mind and soul reminds you of the heritage of the Himalaya and its synchronicity, the chance to learn about religions and philosophies, to study a language or music, to observe a ritual or a dance, and to be reminded of the great studies of ayurveda, homoeopathy and Tibetan medicine.

In Nature we have reminded you that the world's most famous arboretums probably gathered their first samples from the Himalaya, and that this country abounds with most of the butterflies and birds species in the world. Under heritage we have mentioned the sacred sites of Nepal and the UNESCO listing of world Heritage sites in Nepal, and in the rural section have suggested to you what you could discover by way of rural visits, sustainable Eco-tourism, village tourism and home stays in Nepal.

Deal with foreign investment Procedural Foreign investors wishing to invest in Nepal as 100 percent foreign owned enterprises or as joint venture investments are required to make an application to the Department of Industry on a prescribed form along with a detailed feasibility report. The application form calls for information on project highlights, total capital investment, sources of finance, plant capacity, location of project, machinery, equipment and raw material requirements and the specific contributions to be made by the foreign investor and the local investor. The Department of Industry evaluates the project proposal and submits its recommendations to the industrial promotion Board for approval.

The industrial Promotion Board consists of the following. Minister of Industry Chairman Assistant minister of industry- Member National Planning commission-Member Governor, Nepal Rastra Bank-Member Secretary, Ministry of Industry-Member Secretary, Ministry of Industry-Member Secretary, Ministry of Commerce - Member Representative, Federation of Nepalese Chambers of Commerce and Industry-Member Two reputable persons from industrial, commercial and tourism sectors- Members Director-General, Department of industry- Member Secretary. The Board may invite other related persons as invitees for meetings. This Board is the highest Government body responsible for the approval of projects.

The Department of Industry will notify the application about the decision of the industrial promotion Board within 30 days from the receipt of the application. In granting permission for investment, the Department of industry will specify the facilities and concessions the investor is entitled to. After the issue of the license, the applicant is required to apply for registration of his company with the company Registrar's Office within 35 days from the date of receipt of permission. Thereafter the company will be registered within 21 days. Formation of Company The registration of a project in the Department of Industry involves the incorporation of a company under the Nepal Company Act. This would entail the filing of a Memorandum and the Articles of Association of the Company specifying the name and address of the Company, objects of the company, amount of authorized capital, appointment of directors, convening of annual general meeting of shareholders, Procedures of the company and so on.

A company may be incorporated as a private limited company or a public limited company. A private company is limited to 50 shareholders and its incorporation needs a subscription of capital by at least 3 investors. In the case of public company at least 7 investors should subscribe to its capital. After a public company is incorporated it must publish a prospectus, with the approval of the Department of Industry, before issue of shares to the public. One Window Services HMG of Nepal has reorganized administrative arrangements to deal with foreign investment projects with a view to providing all services required by foreign investors under one roof.

Accordingly the Department of industry will be responsible for granting licenses, facilities and other administrative services to all industries established with foreign investment and/or technology transfer arrangements. The status of the Department of Industry has been upgraded to facilitate quake and efficient disposal of applications for investment. An one window committee comprising the following is formed to provide quick and efficient service on infrastructural and other matters of primary concern to industrialists: director-General, Department of Industry (Convener) Joint Secretary, Ministry of Industry Joint Secretary, Ministry finance Joint Secretary, Ministry of Commerce Chief Controller, Nepal Rastra Bank,

This committee will attend to the needs of investors on supply of water, electricity and telecommunication facilities, imports of machinery, raw materials and spare parts, issue of import licenses, release of foreign currency and all other facilities required by investors. The committee will have the authority to make binding decisions on these matters.

Investment Opportunities

Feasible Project Areas Hydro Electric Power Theoretical hydro power potential of Nepal's rivers, based on average flows has been estimated at 83 million kilowatts, which is one of the largest potentials in the world. Despite the enormous hydro power potential, till now Nepal has been able to generate only 261.918 MW of hydro power which is 0.3% of its total hydro power potential. Demand for power is growing at about 10 percent annually. At present electric power supply is available to only 14 percent of the population. It is enunciated that the country's power demand will grow to 0.61 million kilowatts by the year 2005 and to 1.64 million kilowatts by the year 2015. A large amount of power produced in Nepal can be easily exported to neighboring countries. Nepal Electricity Act if 1993 provides access for the sale of its power to other country and also for the import of power from other country. Nepal and India entered into a power Trade Agreement, which allows independent mutual power deals on government, semi government and private sector levels between two countries. Tourism His Majesty's Government of Nepal has adopted tourism Policy in 1995 with a view to promote tourism sector. Under the policy, Nepal will be developed as a secure tourist destination. Existing facilities will be upgraded and new tourist areas will be developed. Competitive tourism promotion and marketing program will be launched in tourist origination markets to establish Nepal as major tourist destination. With a view to promote tourism, HMG/N has also launched visit Nepal Year program in 1998. Many tourists visit Nepal in ever increasing number.

In 1990 around 255000 tourists visited Nepal. Tourist’s arrival in 1996 increased to 393613. Asian region and Western Europe continue to be the prime tourist market followed by North America, Australia and the pacific. Recent projections made on tourists' arrivals indicate a very steady growth to reach 625000 in 2000, 761000 in 2005 and 953000 by the year 2010. The number of star and non-star hotels is increasing rapidly. The quality and services of these hotels have been improving. BY the year 1994 the number of hotels reached to 394 and the beds to 17730. BY mid-January 1998 the number of tourist hotels and tourist beds had increased to 706 and 27612 respectively. While considering the projected arrivals and exiting stock of hotel rooms, it is estimated that there will be a big shortfall of rooms of 4 and 5 star standards by 2010 in Kathmandu and high-class hotels in Pokhara which is becoming an important tourist destination.

The tourism industry is growing very rapidly and Nepal has tremendous potential for tourism development because of its unique natural and cultural heritage. A major strategy in meeting the demand for hotel rooms in Nepal is to encourage increased private investment in popular tourist activities and recreation would be successful undertaking. Foreign investment will be encouraged in capital intensive tourism industries such as hotels, resorts and areas which transfer modern technology and skills. Agro and Forest Based Industries Medicinal and Aromatic Plants Due to the varied agro-climatic environment, Nepal is very rich in medicinal and aromatic plants with over 700 plants species. The collection as such plants from wild sources has been practiced since ancient times. With the establishment of the Royal Drugs Research Laboratory in 1962 the commercial utilization of medicinal plants has been encouraged. More than 300 species have been screened and studied and extraction of Diogenes, reserpine, alkaloids of belladonna, glycogen of digitals, lemon grass oil, rosin, turpentine and menthol has commenced.

Nepal, a traditional exporter of crude herbs, is now gradually emerging as a exporter of processed herbs and aromatic plants. In recent time’s commercial cultivation of medicinal plants such as atropa belladona and aromatic plants such as palmarosa, lemon grass, citronella and menthe arvensis have assumed importance. Recent studies also indicate good prospects for the cultivation and processing of chrysanthemum cinerariaefolium (pyrethrum), claviceps purpurea (Ergot), digitalis lanata, ecucalyptus camaldulenisis, glycyrrhiza flabra, mucuna pruiens, piper longum and valeriana wallichi. The medicinal and aromatic plants can be exploited for the production of following: essential oils from lemongrass, citronella, palmarosa and mint, oleoresin from ginger, large cardamons, timur and tejpat; turpentine oil androsin from chir pine; medicines from valeriana wallichii, calamus acrous and nardostachye jatamanshi.

In addition to traditional medicines and essential oils, herbs and essences also have a potential as a raw material for the production of cosmetics and perfumes, herbal teas and natural health products. Flower Seeds Due to varying agro-climatic conditions Nepal is in an unique position to produce a wide variety of flowering seeds which could be sold in international markets. In the summer season zinnia, marigold, gladiolus, salvia, dahlia, canna are grown extensively. In winter and spring most of the annual flowers such as bellies, dianthus, pansy, antirrhunum, helichrysum, aapaver, verbena, and sun flower and so on are grown. The potential for seed production of the following varieties, in particular, has been identified as being very good: anemone sp., aster, chrysanthemum morifolium, elsholtzia californica (California poppies), laythyrus odoratus (sweet pea).

The availability of varied climatic conditions and inexpensive labor provide Nepal a comparative advantage to produce flower seeds at low cost. Commercial production and export of flower seeds require maintenance of high technical standards and good supervision. Technology and expertise of foreign companies could be effectively employed to develop this profitable agro-business in Nepal. Vegetable Production for Export Due to the variety of agro-climatic regions and fertile soils Nepal produces a wide variety of vegetables of good quality. The major items of vegetables grown on a commercial scale are cabbage, carrot, turnip, radish, cauliflower, peas, capsicum, eggplant, tomato, okra, beans and cucumber. The major centers of vegetable production are in the Kathmandu valley and in the Dhanusa, Sarlahi, Bara, Makawanpur and Chitwan districts. Almost the entire production of vegetables is consumed within the country, though some exports to India and Tibet are taking place. Recently the production of snow peas for export to japan has got off to a satisfactory start and other items like French beans are to be produced for export. This has clearly demonstrated the potential which exists for the production of a few special varieties of vegetables on a commercial scale for export. Foreign investment for the scientific cultivation of vegetables for export would be a profitable business.

Fruit Processing Nepal is endowed with good ecological conditions for the cultivation of a variety of fruits. At present citrus fruits, apple, banana, pineapple, mango, pear, litchi, guava, peach, plum and apricot are available in sufficiently large quantities. Plans are also underway to increase the area under cultivation through commercial fruit development programs. The total quantity of fruits produced is estimated around 500,000 mt. Fruit processing industries consume a fair proportion of total production. Two important fruit processing industries are engaged in the production of fruit squash, fruit juice, jams, jellies, and marmalade and fruit salad. Some of these products are exported from Nepal. Opportunities exist for the setting up of industries to process fruits for sale in export markets as fruit juices and squash, jams and jellies and fruit based special liquors. Tea Development Nepal has commenced commercial production of area only in comparatively recent times. The Nepal Tea Development Corporation, a government agency owns seven gardens with a total area of around 880 hectares.

In addition the private sector owns tea gardens with total area of around 1250 hectares. These tea growing areas are in the Eastern districts of Illam, Jhapa, Panchthar Terhathum and Dhankuta, almost adjacent to the world renowned tea gardens of Darjeeling in Indian. The Government has given high priority to increase tea production in the Eastern Districts with a view to achieving self-sufficiency in tea and to export high quality teas to oversee markets. In order to encourage tea cultivation exemption from the land ceiling law has been provided together with attractive incentives. Good prospects exits for the production for quality orthodox tea in Nepal similar to the Darjeeling teas produced in India. Improved cultural practices, latest technical know-how and efficient management systems are required to bring the tea industry in line the other tea producing countries in the region. Agriculture The development of sericulture has been identified as offering very good potential for development in the mid-hills and Terai belt of Nepal by experts from Japan, Korea, china and India. Agro-climatic conditions in these areas favor the cultivation of mulberry and the reading of cocoons. The Government has set up a nucleus Centre at Khopasi about 35 km. east of Kathmandu in 1975. The center initially served as a demonstration Centre and later expanded its activities to provide training, extension and research functions. In 1991/92 it will also function as a major silkworm egg breeding station. Nepal has developed six bivoltine lines and these will be used to produce hybrid silkworm eggs in the country. The preferred production technology in Nepal is the temperate bivoltine technology which is simple and easily adaptable by small farmers. On a very preliminary assessment mulberry cultivation could be extended over an extend of 6000 hectares which could yield around 350 tons of raw silk and 85 tons of waste silk.

The value of silk fabric from this level of production could exceed Rs. 1800 m/n. Private investment to encourage mulberry cultivation and cocoon rearing by small farmers could be developed successfully in Nepal. Post cocoon activities involving reeling, twisting, weaving and production of items out of silk fabric could be developed as medium-scale industries.

Integrated Dairy Industry Nepal is a net importer of dairy products. The import of milk products-powder, condensed concentrate, butter, cheese-is estimated to exceed Rs. 120 m/n per annum. Despite these imports there is a severe shortage of fresh milk, infant milk and other milk products in the country. Nepal has a long tradition in dairy farming. In fact Nepal has in the past exported milk products to India and Tibet in the form of ghee. She could develop the dairy industry to meet domestic demand as well as renew exports to India and other markets.

The topographical and climatic conditions are well suited to dairy development. An integrated dairy industry incorporating related activities such as improved livestock breeding, cattle feed production and processing of milk products would offer promising prospects for profitable investment. Such a project could build up on existing small dairy units spread around the country through a well-organized program of extension services to improve livestock breeds and an efficient collection system for processing in a central unit. Flora culture Due to the variations in climate, topography and vegetation, Nepal has a diversity of ornamental plants and flowering plants which could be scientifically cultivated to promote export oriented business. The flower and orchid industry is presently concentrated in the Kathmandu valley. The commercial development of floriculture is still in a very early stage of development. Out of nearly 25 flower grower, only 3 have entered export business in recent times.

The development of tissue culture initiated by the national Herbarium and Plant Laboratory at Godavari is opening up opportunities for mass production for flowers which could be exported from Nepal. Already tissue culture method of propagation has been successfully developed in the production orchids and other cut flowers. Some of the orchid genera which have been successfully developed are coelogyne, cymbidium, dendrobium, epidedron adn vanda. Among the other cut flower species carnations and chrysanthemums have also been similarly developed. Prospects for the development of floriculture business are excellent especially for the following species of orchids: cymbidiums dendrobiums, calanthe, coelogyne. Similarly in other cut flowers carnatios, gerbera, rose, gladiolus primulinus, iris polynathes, chrysanthemum, narcissus tazella offer very good prospects. It is also feasible to introduce the following varieties or commercial development in Nepal: Exotic orchids-paphiopedilun, Cattelya, cattelya hybrids, arachris, epidendron, mokara, oncidium and odontoglossums; exotic cut flowers-tulipa, anthurium, alstroemeria, freesia ang gysophila. Foreign collaboration for the development of floriculture to provide technical know-how for cultivation of flowers is required to meet the standards demanded in international markets and to provide guidance in market identification and development.

The availability of direct flight connections to Frankfurt, London, Dubai, New Delhi, Singapore and Hong Kong offer good prospects for the development of a profitable export oriented floriculture business in Nepal. Processing of Spices Nepal produces a large variety of spices such as ginger, timur, large cardamom, turmeric, medicinal spicy herba, himali cummin, cinnamon, garlic and a variety of chillies. Most of the spices cater todomestic demand and some items like chillies, tumeric, garlic, ginger and cardamom are exported to India and other markets in a raw form. The estimated production of major spice items in 1990 was 92,000 metric tons. Mushroom Cultivation in which many varieties of edible mushrooms are found in a wild state in the Terai lowlands the hills and mountains of Nepal. Two rare varieties similar to European types known as "Guchchi" and "Yarsha Gumba" are found in the hills and mountains under natural conditions. Among the cultivated varieties, agaricus bisporus, pleorotus spp and volvariella are important. The temperature and humidity conditions necessary for growing agaricus bisporus (button mushroom) are very satisfactory in the hilly regions during some seasons. The pleorotus spp. (Oyster mushroom) and volvariella (Paddy straw mushroom) grow easily during most seasons. The Kathmandu valley has temperature, humidity and other biological factors suitable for the cultivation for the cultivation of these two varieties of mushrooms throughout the year.

The plant Pathology section of the Department of Agriculture's research station at (Kathmandu Valley) is producing mushroom spawn. This unit has well qualified staff to undertake research, spawn production and for extension work. The potential for mushroom production on a commercial scale is good especially with a view to marketing overseas as fresh mushroom, dried mushroom and canned mushroom. Coffee Processing Coffee beans are produced in western Development Region of the country. Though the international price has increased sharply. The coffee farmers in Nepal are getting not more than 50 cents a kg. Establishment of small-scale coffee processing plant would encourage the farmers to grow more coffee beans. This industry can substitute the import and also export high quality chemical free coffee. Mineral Exploration and Exploitation the mineral resources which could be commercially exploited have been identified as limestone, magnesite, talc, dolomite, silica sands, clay, building and construction stone, iron ore and lead/zinc. Several major limestone deposits have been identified in Nepal and exploitation of some of these deposits for the manufacture fo cement and agricultural and industrial lime is already underway. Prospects for the further exploitation of these deposits for industry are considered to be very good especially for production of cement, agricultural and industrial lime and bleaching powder. Major limestone deposits are found in Okhara (10 million metric tons) Udaipur (51.4 million metric tons) and Surkhet (48.6 million metric tons). In addition to these major reserves sizable deposits are fond in Panaute, Dhankuta and other areas in Udaipur. Dolomite is known to exist in a number of areas and one large deposit of magnesite. Talc deposits have

Been identified and one deposit is being exploited for the production of slabs. A commercial deposit of leads/zinc has been identified and initial steps taken to exploits. An iron ore deposit has been identified but not yet exploited.

The Government has blocked out land in the Terai belt for oil exploration and one foreign company was engaged in oil exploration activities. Mineral exploration and exploitation in some of the areas identified above offer promising prospects for investments. Textile Industry The textile industry has been identified as a basic needs industry and high priority is attached to investments in this sub sector. Based upon a minimum per capital consumption of 11 meters (low estimate) by the year 2000, the total requirement of textiles is estimated at 254.8 m/n. meters. Installed production capacity at present is estimated at 18.3 m/n. meters but capacity utilization has been less than 50 percent. In order to achieve self-sufficiency in clothing it is proposed to encourage the order to several textile units, it is proposed to encourage the establishment of several textile units, several of which would be integrated textile mills involving spinning, weaving and finishing of textiles.

The production of cotton fabrics and synthetics and blends would be in high demand. In view of the high priority attached to this industry, investors are assured of very good conditions for profitable investment. Electrical and Electronic industries the electrical and electronics industry sub-sector in Nepal is still in an early stage of development.

According to the 1994/95 census of manufacturing industries, there were 37 firms operating in formal sector activities of which 33 were engaged in electrical industries and 4 in electronic industries. Since the survey a few additional units have been established. The domestic demand for electrical goods is expected to increase with the expansion of the electric power generation system, telecommunications and radio and TV broadcasting. According to preliminary estimates significant demand is forecast for heaters, radio, TV and communication equipment and apparatus, electrical appliances and house wares, batteries, wires, cables, plugs, switches, lighting fixtures and so on. Prospects for setting up industries to produce these items are therefore good. Nepal offers very good prospects for the development of electronic assembly industries catering to export markets.

The low cost of labor would give Nepal a competitive edge of other locations in South and south East Asia. The labor force has the ability to master quickly assembly operations which involve use of hand tools such as screw drivers, pliers and soldering irons. In addition to the advantage of low cost labor, Nepal provides a stable environment which is conducive to dovetail assembly schedules with the production of finished goods in overseas locations on a planned basis. Assembly schedules with the production of finished goods in overseas locations and export of assembled units would be feasible. The products should have a high value to weight ratio. Kathmandu, the capital has good air connections to Europe through Frankfurt, London and Moscow and to the Far East through Singapore, Bangkok and Hong Kong. Some of the electronic industries which could be established in Nepal are computer keyboard assembly, single and double side circuit boards, small ferrite core transformers for switching power, circuit board stuffing and test service, cable harness assembly, domestic mains multi-socket power strips and similar assembly industries requiring a high labor content.

Pharmaceutical Industries Nepal has a large and growing demand of drugs and Pharmaceuticals that are being met by domestic production about 20 percent of the requirements and the balance is met by importation. Royal Drugs Ltd. is a public sector undertaking as a pioneer in Pharmaceuticals industry. Prospective companies may benefit by setting-up of a manufacturing plant or marketing pharmaceuticals or initiating bulk drug production for the whole country. The market for pharmaceuticals is estimated to be more than Rs. 5,000 million. Much of the demand is supplied by India based national and multinational companies. The demand for Pharmaceutical is expected to increase significantly over the next decades due to improvement of modern health care facilities and establishment of a good transportation network within the country.

Import of Pharmaceutical products of the year 1997/98 is estimated to be Rs. 3.36 millions. Good prospects exist for the establishment of a few industries producing formulated drugs. The best areas for immediate investment are in the production of the major high volume product lines of Essential Drugs out of National list of Essential Drugs, categorized by Ministry of Health Department of Drug Administration. Leather Goods Industries Leather sector in Nepal is considered as one of the most potential areas in terms of its value addition and export possibility. In Nepal leather sector consists of three main areas, leather processing, leather goods manufacturing and foot wear production. As of now leather sector comprises of third position with regard to overseas exports of Nepal. The availability of abundant raw materials in different parts of the country gives a greater scope for industrial production of leather and leather goods. At present industrial production is carried out by 16 industrial units, located mostly in Terai area. The bulk of the production and exports are in semi-finished wet blue and crust.

During Fiscal Year 1997/98 hides a skins worth Rs. 414 million were exported to overseas countries only. The technologies that are well established in tanneries have not yet reached to Nepalese tanneries. The Government had opted for gradual swift over for accomplishing increased production of crust and/or finished leather. There exist ample opportunities for enhancing productivity of the existing tanneries as well as establishing new tanneries with modern technologies. With regard to leather goods producing industries in the country about one hundred leather based industries are in operation. Of which one fourth is producing leather goods and the rest are on footwear. However, most of the leather based industries are operating on micro scale using traditional skills and technologies. During Fiscal Year 1997/98 leather goods worth Rs. 31.24 million were exported to overseas countries. Taking into consideration the availability of raw materials within the country, there exist greater prospects for the development of leather based industries in Nepal.