Nepal is moving fast to open up and decentralising its trade sector to attract more foreign direct investment (FDI) into the country. | |
| Nepal will amend laws to boost trade and foreign investment, according to Dinesh C Pyakural, Speaking on 'Nepal - A land of investment opportunities' at the Indian Chamber of Commerce (ICC), Pyakural, secretary- ministry of Industry, commerce and supplies, government of Nepal said the hydel power sector was an area of immense potential that needed Indian FDI. |
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| "The potential of hydel power generation is as high as 86,000 MW of which 46,000 MW is commercially viable. Nepal welcomes Indian companies for their participation in Nepal", said Pyakural. Discussions were on at the government level for possible joint ventures in this sector. |
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| The government of Nepal was thinking of establishing an independent regulatory authority and introducing competitive bidding practices for power purchase agreement (PPA) from independent power producers (IPP), he added. |
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| Pyakural said with phasing out of quota regime there was scope for Indian textile manufacturers go for joint ventures in Nepal and gain from the benefits enjoyed by Nepal as a less developed country (LDC). |
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| The Nepal government is initiating reforms for deregulation of public sector monopolies primarily in sector like petroleum. |
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| "A bill is in the process of enactment to deregulate the petroleum sector", he added. |
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| The Nepal government is also thinking of offloading its share in public sector to private players. |
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| "Nepal is in the process of divesting government's share in public companies like Royal Nepal Airlines Corporation (RNAC) and Nepal Telecom (NTC) up to 40 per cent in the initial phase and thereafter up to 51 per cent", said Pyakural. |
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| Security of Indian businesses was not a problem in Nepal, Pyakural said. Following discussions between the government, business federations and Maoist groups, security of international businesses operating in Nepal had been secured, he claimed. Presently Nepal's imports from India was 60 billion Nepali rupees whereas the export to India is around Nrs 22 billion. |
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| "Nepal's imports from India accounts for nearly 53 per cent of its global trade", added Pyakural. Leather and leather products, handicrafts, ready-made garments, medicinal herbs and paper were some of the major exportable manufacturing items, informed Pyakural. |
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