Kathmandu, September 8

Nepal Telecommunications Authority (NTA) is positive about providing Rs four billion from its income to the government to assist in reconstruction works.

The authority has stated that it would release the amount after it gets a go-ahead from the Ministry of Information and Communications (MoIC).

Amid increasing income of NTA and the latter having no concrete plans to utilise the fund, the Ministry of Finance (MoF) had asked the telecom regulator to contribute Rs four billion in the National Reconstruction Fund (NRF). The fund was established by the government to manage reconstruction works in the aftermath of the April and May earthquakes.

Digambar Jha, chairman of NTA, said that after receiving the request from MoF, they have sought agreement in principle from the MoIC to release the money. “Since there are no immediate plans for using the income, we are positive about extending financial support for reconstruction, which in a way would also assist in national development,” he said.

NTA’s income has increased significantly after two major telecom companies — Nepal Telecom (NT) and Ncell — started paying their licence renewal fee in instalments of Rs 2.5 billion every year, three years ago based on the government’s decision. At this rate, NTA’s income will surge to at least Rs 30 billion in five years solely from licence renewal fee from NT and Ncell, and instalment of licence renewal from Smart Telecom, among others.

Yet, the government has no plans to utilise the income of NTA till date. In the last three fiscal years, NTA earned a total of Rs 11.25 billion from the two major telecom companies, which does not include Rs 3.75 billion income tax paid to government from the licence renewal fee collected. The telecom regulator earns from fees for new licence issuance, licence renewal and licence transfer.

Earlier this year, due to the failure to utilise reserved resources, the Office of Auditor General had instructed NTA to transfer Rs 14 billion to the national coffer, including the money of Rural Telecommunication Development Fund (RTDF). However, NTA refused to do so saying that projects are in the pipeline to utilise the RTDF. The fund has amassed over Rs 11 billion so far.

Even though RTDF’s utilisation has been planned to expand the reach of broadband and connectivity to schools and community level, the authority has not made any concrete plans to utilise its huge income.

“As NTA’s annual budget is hardly Rs 400 million every year, the government should think of making best use of its reserved income which amounts to billions of rupees,” said an official at NTA.