18/09/2016
As lack of investment is considered to be the major setback for the robust growth of the country’s economy, Nepal has been trying to lure foreign investment in various sectors since 1992 through introduction of Foreign Investment and Technology Transfer Act (F***A). However, the decade-long insurgency, political transition, labour unrest and power outages have surfaced as discouraging factors in attracting foreign direct investment (FDI) in Nepal.
To energise Nepal’s economy, which was further devastated due to last year’s earthquakes and border blockade, China India Business, Investment and Incubation Centre (CHIBIIC) — a Haryana (India)-based think-tank — in association with Nepal Invest Pvt Ltd is going to organise a trilateral — Nepal, India, and China — investors’ meet in the Capital on September 29.
The trilateral investors’ meet has been planned to push Nepal to move together with its giant neighbours — India and China — by harnessing the potentials of the country, informed Bhai Raja Panday, managing director of Nepal Invest Pvt Ltd.
CHIBIIC is also taking the initiative to bring investment in India. Chinese investors have made huge investments in India under the initiation of CHIBIIC, which facilitates foreign investors in India. As per the recently unveiled data by MakeInIndia Campaign of Indian Prime Minister Narendra Modi, a total of 52 projects have been set up under MakeInIndia Campaign by Chinese enterprises, creating altogether 24,162 jobs with $10.70 billion capital invested.
“If Nepal could tap even a small portion of annual outward FDI from China and India, it would be sufficient for its investment needs like in infrastructure, production and service sectors,” Panday explained, “This is why we have joined hands with CHIBIIC for the investors’ meet. Nepali investors would be able to establish contacts and negotiate with investors from neighbouring economies to set up businesses in joint venture.”
The government has also pledged to facilitate those who commit to invest in Nepal. Prime Minister Pushpa Kamal Dahal is scheduled to inaugurate the two-day investors’ meet.
Indian investors can invest directly through Nepali joint ventures, while the government is willing to facilitate Chinese investors wanting to partner with government enterprises to establish joint ventures in the country.
The list of participating companies from India has been finalised, while a Chinese company — Xian Sino Business Operation and Management Co Ltd — has been assigned to coordinate and bring Chinese investors for the meet.
Investors from various sectors like manufacturing, agro industry, financial services, education, textiles, electrical, real estate, health, renewable energy, among others, from China, India and Nepal are scheduled to participate in the meet.
A total of 22 companies from India, including some prominent corporate groups, have confirmed their participation in the trilateral investors meet. Similar numbers of investors are expected to participate from China. Likewise, representatives from 70 Nepali companies have registered their names for the investors’ meet.
