Indefinite strike at Indian telecom JV in Nepal

By Sudeshna Sarkar, IANS

Kathmandu : Indian joint venture United Telecom Ltd (UTL), the first private operator to enter Nepal’s telecom sector, was shut down indefinitely by workers from Tuesday, becoming the third Indian venture under siege in Nepal.


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The strike was called by the UTL Workers’ Union loyal to prime minister Girija Prasad Koirala’s ruling Nepali Congress party.

UTL, a joint venture with three Indian companies – MTNL, VSNL and Telecommunications Consultants India Ltd – and a Nepali partner, Nepal Venture Pvt Ltd had faced severe disruption during King Gyanendra’s 14-month reign when its telephone lines were inoperative six times, causing losses of millions of rupees.

Even after the end of the royal regime and restoration of multiparty democracy in Nepal, it continued to smart under discriminatory provisions dictated by the Maoists.

Now the indefinite strike has been called by the union demanding permanent jobs to workers hired for over 240 days, medical treatment, providing life insurance, accident insurance and provident funds, as well as house rent and free education for workers’ children.

Santosh Rayamajhi, president of the UTL Workers’ Union, said the over 100,000 phone lines run by UTL will function unhindered but all other administrative and customer care services have been stopped.

Last month, the union submitted its demands to the authorities and gave them three weeks to implement them.

UTL said the demands were unreasonable.

“Like the custom in India or elsewhere, we outsource unskilled jobs,” UTL CEO N.R. Mokhariwale said.

“We called a tender and gave the contract to a local agency, who hired the unskilled workers. The strikers are all the contracting company’s men.”

The Indian telecom JV is the third major Indian venture to have been hit by a strike this year.

Surya Nepal, ITC’s subsidiary in Nepal, has had its tobacco factory shut down for 10 days now with the trade union, comprising both Maoists and Nepali Congress, demanding similar rights.

Nepal Lever, Hindustan Lever’s subsidiary, has also been closed since Wednesday by local residents. They have been demanding community development activities by the multinational as well as jobs for local people on a priority basis.

Another Indian company, GMR Energy, recently signed a memorandum of understanding with Nepal’s water resources ministry to develop a 309-MW hydropower project.

However, though a government committee assessed its bid as the best, GMR’s entry has triggered protests and demonstrations by Maoists and local NGOs, who are accusing the government of a sell-out to the Indian company.

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