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China Tops FDI Commitment in Nepal

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China Tops FDI Commitment in Nepal
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September 13: The initial statistic of current fiscal year (FY) has shown positive indication for foreign direct investment (FDI) in Nepal. The growth of FDI in the current FY is being predicted due to the abundant commitment for the investment within the one and half month of the current FY.  In the previous FY, the commitment for FDI had contracted due to the earthquake, border blockade and Tarai unrest. “The first statistic could be taken as signal of increase in FDI, as there is no obstacle this year,” said Maheshwor Neupane, Director General of Department of Industry (DoI).


According to the DoI, 38 industries including one big industry, five middle scales along with 32 small scale industries have been registered till August 31 under FDI. In the previous year, such registered industries were 341.  A total of Rs 1.36 billion worth of FDI has been committed this FY under which Rs 370.78 million is current capital and Rs 1.12 billion is fixed capital. Among the investment, Rs 1.7 billion FDI is committed from China and the rest is of domestic investment.


China has committed the highest amount of FDI in the country. 44 out of the total 68 registered industries are from China.  China has committed to invest Rs 1.13 billion FDI including Rs 297.3 million on current capital and Rs 834.1 million on fixed capital.


Similarly, India is the second highest FDI commitment holder. India has committed to invest in seven industries so far.  The industries has provided the FDI  commitment of Rs 40.9 million as current capital and Rs 128.5 million fixed capital with total amount of Rs 169.5 million. In the total amount, Rs 110.70 million is from India and the rest is domestic investment.


Likewise, America, Japan, Britain, Germany, Pakistan, Russia, South Korea, Switzerland and Netherland are some countries that have committed for FDI.  


According to Neupane, government is preparing required legal mechanism to ease FDI. “The necessary suggestion on the drafts of foreign investment and technology transform Act has been send to the Ministry,” he said adding, “The Act will be presented as bill by December/January.”

 

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