FNCCI backs govt decision to end transport cartels

Published On: April 20, 2018 02:53 AM NPT

KATHMANDU, April 20: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has extended its support to the government's move to disband transport cartels across the country. 

Issuing a press statement on Thursday, the umbrella organization of business enterprises across the country welcomed the decision of the government, saying that they had long been demanding an end to all forms of syndication and cartelling.

Earlier this week, a cabinet meeting had decided not to register and renew the registrations of all organizations or institutions affiliated to public transport through the District Administration Offices (DAOs). “FNCCI has been continuously putting forth its views that the practice of syndicate, cartel and rotation system is in no circumstances justifiable and appropriate in a country that has embraced open market policy,” said the statement.

The FNCCI said it had even moved court against the anomalies existing in the country's transport sector in the past. “The FNCCI has a demand that the practice of syndicate, cartel and rotation system imposed even in cargo transport sector be stopped,” the statement further said. 

The FNCCI has also urged the transport associations to revoke their decisions to launch transport strike and other forms of protests.
The call by the FNCCI comes amid five national federations of transport entrepreneurs jointly announcing a series of protests including a nationwide strike against the government decision to end cartels.
The transport federations unveiled their protest plan a day after the government decision not to renew the registrations of transport committees, effectively ending their legitimacy. A few weeks ago, the government had also revised and amended the Transport Management Directive 2004, forcing transport entrepreneurs to come under Company Act instead of through recommendations of transport committees.

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