Army in business: Now run a guesthouse too

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Army in business: Now run a guesthouse too

The army, which is involved in everything from land transactions to contracts, is now planning to run guesthouses in big cities including Kathmandu, Ilam, Pokhara, and Butwal. 


- 36 million investment in agriculture campus opening

- three billion 81 million investment in health 

- in five fair value canteen, daily million business 

- an investment plan to modify the tax


The army, which is run by the people's taxes, is active in for-profit businesses as a private company against professional dignity. The army, which has been operating from real estate business to canteen operation, is now planning to invest in guesthouses as well. The army has planned to build guest houses in Jagannath Dewal, Ilam, Pokhara, Butwal, and other areas in Sundhara of Kathmandu from the Army Welfare Fund under the welfare scheme.


According to the Welfare Planning Directorate, the capacity of guesthouses will be 111 rooms. According to the directorate, the guesthouse is being operated for the purpose of providing accommodation during the visit and will be used only for military purposes.


The army plans to increase investment by increasing the annual capacity of the emulsion plant at Manachari Gaonpalika-6 Sunachari in Makwanpur by 80 percent. Explosives produced from the plant established on March 11, 2006, are being used in development works. Last year alone, the plant produced explosives worth Rs 240 million. 


The army will also improve the logistics base camp (Nepal House) in Uganda, an African country, to assist security personnel on peacekeeping missions. From the camp, the army has been providing APC (Armed Personnel Carrier) and state-of-the-art weapons and other military equipment to the soldiers deployed in the mission. The United Nations provides funding for the military. 


Under the plan, the army will also produce the necessary military boots for security personnel. For this, the army has created the 'Nepal Army Shoe Factory Project' and has even got approval from the Department of Industry of the Government of Nepal. The army has already approved Rs 110 million from the fund for the import of machines for the operation of the industry. 


In the plan put forward under Vision 2030, the army has included expansion of schools and colleges, expansion of state-of-the-art hospitals, expansion, and management of petrol pumps, expansion of mineral water and oxygen plant, operation of a pharmacy, and others. Sahaykarthi Sagar Bahadur KC, Director of the Welfare Planning Directorate, said that all the schemes put forward under the welfare scheme will be implemented under immediate, medium, and long-term strategies.


He said, “The army has moved ahead with welfare thinking 030 under the welfare scheme. Various schemes have been formulated under this. The Army will implement all these plans under immediate, medium, and long-term strategies. The investment will be raised from the Army Welfare Fund.


Security personnel who go on peace missions are placed in the Military Welfare Fund after deducting a certain amount of facilities received from the UN. The fund, which was established in 1932 BS, now has a capital of Rs. 54.12 billion by adding the money received from various businesses. 


The army, which will open an agriculture campus with an investment of Rs 360 million, will also invest in the agricultural sector. Will invest especially in agricultural science studies. For this, the Nepal Army will transform the Agricultural Science Institute into the Nepal Army Agricultural Science Institute. Bachelor level agricultural science related BSc AG subject will be taught in the institute with an investment of Rs. 360 million. The Army has already taken initiative at Tribhuvan University to get involved in the study. According to the army, children of soldiers and civilians will be able to study at the institute. 


The army will also cooperate with the Israeli government to study agricultural science. As per the agreement reached between the Government of Nepal and the Government of Israel for the development of the agricultural sector, the Army has been imparting short-term agricultural training by setting up agricultural farms in Lamjung, Morang, and Kailali. As per an agreement reached between Israel's Arava Modern Agriculture Company and the Gandaki state government, the army has completed all necessary preparations to send 20 military offspring for 11 months of agricultural training.


The army has put forward a plan to develop the cantonment-based Virendra Sainik Hospital as a 'non-referral hospital. For this, the army will set up a state-of-the-art 'Cath Lab' for the treatment of heart disease in the hospital. At the same time, the army will expand the pathology of the hospital along with the latest equipment. 


In addition to this, the state-of-the-art military hospitals constructed in Bardibas and Dhangadhi will also provide facilities to the patients. There are well-equipped military hospitals in Nepalgunj, Itahari, and Pokhara. The army has also been teaching medicine in its hospitals. For this, the army has established the Nepal Army Institute of Health Sciences.


The institute, which started post-graduate studies in various subjects related to health from 075 BS, will now run BLMT and BPH level programs. The institute will now also offer undergraduate-level dental studies. So far, the army has invested Rs 2.21 billion under the Institute of Health Sciences alone.


Besides, the fund has invested Rs 1.60 billion in the construction of Tri-Chandra Military Hospital in New Road alone. Analyzing the investment, the army has invested the largest amount of the fund in the health sector. The army and its dependent military families have been benefiting from the investment proceeds from the fund. According to the army, the number of the army and its dependent families is now more than nine lakh. 


Rathi KC, Assistant Director of the Welfare Planning Directorate, said, “Investments have been made in various sectors under the welfare fund. The income from there is being spent on the welfare of the soldiers and their dependent families. We now have nine lakh, dependent families.


The army has been investing about Rs 600 million in

real estate alone since 2006. The army has been buying land and plotting, building houses, and selling it to army officers at concessional rates. In Itahari of Sunsari, the army has built and sold 1,108 ghaderi. In Pokhara-based Phulbari, 72 pots have been constructed and sold. Similarly, 151 ghaderis have been constructed and sold in Radhakrishna Toll of Pokhara and 288 in Pithuwa of Chitwan.


 Similarly, commercial housing has been constructed in Ichangunarayan and Chitwan of Bhaktapur. The army has already invested Rs 597.4 million in the fund, including Rs 422.2 million in Ichangunarayan and Rs 175.2 million in Chitwan. The army has been saying that the land in Chitwan is for a military residential secondary school.


 The army has also plotted land at Kirtipur-6 Bhutkhel near Chobhar. More than 700 plots have been built on 350 ropanis of land. The plan to sell Ghaderi has been postponed for now after a dispute with the locals over the issue of sewage. The ground is sloping. Therefore, the water flowing from Jivantnagar in Kirtipur flows into the river and reaches the Bagmati River.


The army has cordoned off the area including Kholsa. He has already built drainage of 3.5 to 4 feet in that place. The locals of Jivantnagar also want to mix their sewage with the army's sewage. However, the sewerage work of about 100 houses has come to a standstill as the army did not give permission. When the dispute is not resolved, the sale of pottery has been affected. 


The investment army has also been operating a soft price canteen from the fund. There are five such canteens in Kathmandu. The army has been operating similar canteens in all the outposts outside the valley. The canteen that came into operation is for soldiers only. According to the army, the canteen was provided at 10 to 15 percent cheaper than the market price. According to the army, goods worth up to Rs 10 million is sold daily in all canteens. 


The army's welfare fund now has Rs 54.12 billion in cash to invest in everything from hydro to tourism by amending the law. Out of which 99.35 percent amount is in class A, 0.08 percent amount is in class B and 0.57 percent amount is in class C banks and financial institutions. The army wants to invest the money in various sectors including the hydro and tourism industries. However, there are obstacles to this, the Army's Military Act, 2063, and the Military Welfare Fund Rules, 2065.


Sub-section (d, n, and p) of Section 2 of the Military Act, 2063 provides that the army can invest in income-generating activities for the purpose of doing welfare work. Such investments should be in the interest of rehabilitated and grounded military personnel and their families. For this, the army can invest in infrastructure and service projects, financial institutions, and industries on a loan or share basis. However, it will not be possible to be a promoter in the investment itself. There is a similar provision in the welfare fund regulations. 


The Army wants to amend this provision in both the Act and the Rules. Wants to open up investment. However, the laws and regulations have not been amended as they stand against the wishes of the army from the security experts to the civil society. 


Security expert Indra Adhikari says the for-profit army cannot be commercialized

. That amount can be invested in different modalities. However, the army cannot invest that amount for the purpose of making a profit like a private company. Otherwise, the army will become profitable like a private company and not like the army. A for-profit army cannot be commercial. This is not the purpose of forming a military structure. Therefore, we should move towards making the army professional, not corporate.

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