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Nepal union asks 35 firms to close
by The Telegraph : 190 views
September 8th, 2004
Source: The Telegraph, Calcutta
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Kathmandu, Sept. 7 (Reuters): A Nepali labour union with links to Maoist rebels asked 35 firms across the embattled Himalayan kingdom today to shut shop in a move aimed at bolstering the guerrilla campaign to overthrow the monarchy.

The new threat comes as Nepal returns to normal after violent riots over the killing of 12 Nepalis by an Islamic militant group in Iraq and is likely to again hit an impoverished economy that has already been hit by years of insurgency.

The new list of businesses asked to close down includes Bhotekoshi Power Company, a US joint venture generating hydroelectric power, and Tiger Tops Jungle Lodge in Chitaun in southern Nepal, a tourist attraction for jungle safaris.

Others on the list are two local luxury hotels, a unit of Dabur Nepal, a joint venture with personal care and herbal products maker Dabur India Limited and other local firms in the tea, jute, textiles and sugar businesses.

In Mumbai, Colgate Palmolive India Ltd said its wholly owned subsidiary in Nepal has resumed operations, in what is seen as huge morale booster for the Nepalese government.

The call by the All Nepal Federation of Trade Unions comes three weeks after 12 businesses, including luxury hotel Soaltee Crowne Plaza and leading tobacco firm Surya Nepal, decided to close down after four bomb blasts rocked the hotel.

Soaltee Crowne Plaza is managed by a Hong Kong-based subsidiary of Britan’s InterContinental Group of hotels and Surya Nepal (P) Limited is a joint venture among Nepali investors, Indian Tobacco Company and British American Tobacco Company.

“Since the government and industrial enterprises have not fulfilled demands presented by our organisation so far, we announce indefinite closure of additional 35 industries from September 10,” the All Nepal Federation of Trade Unions said.

The group, which has close links with the rebels fighting to set up a communist state, did not spell out its demands but in the past it has insisted the government stop dubbing it a “terrorist” group.

The government urged firms to continue operations and said it was ready to provide them with security.

“We cannot threaten the businesses to open but we have told them we will give them adequate security so that they can run their business,” cabinet spokesman Mohammed Mohsin said.

Industry officials say the closure of 12 businesses since the Soaltee blasts — which included a Coca Cola bottling plant — has hit 5,000 workers and resulted in a daily loss of $4 million to the firms.

The latest crisis comes ahead of Prime Minister Sher Bahadur Deuba’s visit to India, a strong supporter of Nepal’s fight against the Maoists.

Deuba is due to leave tomorrow on his first visit to India after being re-appointed in June.

New Delhi has assured its neighbour of all possible help to tackle the Maoist revolt that has killed more than 10,000 people.
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