KATHMANDU, Nov 23: To promote industrialization in the country, the government has brought about a policy to encourage innovative startups.
This year, Rs 1.25 billion will be spent for startups by researching on innovative ideas and enhancing new knowledge, skills and capabilities of those who are held back due to the lack of capital.
Baburam Gautam, director general of the Department of Industry, said that there is a plan to research on innovation and provide loans to entrepreneurs at concessional rates.
He said that the plan is to encourage startup enterprises by preparing credit fund procedures. According to Gautam, the Ministry of Industry, Commerce and Supplies has prepared the procedure and sent it to the Ministry of Finance for approval. “Once the procedure is approved, we will proceed with the process of granting loans at concessional rates,” Director General Gautam said, “We plan to provide Rs 250 million at concessional rates.”
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It is the government's policy to encourage startups that cannot operate due to the lack of capital. The government will support entrepreneurial groups that use innovative and creative thinking in the development, production, operation and distribution of goods, services and processes and operate them professionally.
The Ministry of Industry provided support in the last fiscal year according to the Startup Enterprise Loan Fund Procedure 2079. The procedure designates 14 sectors as startup enterprise sectors.
According to the procedure, these startups are based on Forestry and Herbs, Agriculture and Livestock, Tourism Promotion and Entertainment, Science/Technology/Communication and Information.
Similarly, there is a program to invest in enterprises related to health services for the general public, education, teaching, learning, safe transportation services, infrastructure building, and automobile related businesses.
The ministry has planned to provide loans at concessional rates to startups focused on mining and mineral research and development, helping to make daily life easy, convenient and safe food production and processing and waste management, traditional technology, production and service delivery oriented startups. It is believed that it will help to implement innovative ideas and plans.
The government has prioritized development, promotion and facilitation of start-up enterprises, legal, institutional and structural issues, as well as infrastructure construction and development as a policy.
It is the government's policy to provide financial and non-financial help for the promotion and development of enterprises, capital mobilization for enterprises, increase in domestic and foreign investment, support and facilitation in management, capacity development of stakeholders for start-up economists, promotion of partnerships, and necessary support in manpower management. Enterprises will be encouraged to expand their business even abroad.
The government has been supporting enterprises whose fixed capital is not more than Rs 20 million and paid-up capital is not more than Rs 5 million. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) have also been supporting startups and small and medium enterprises (SMEs).
The CNI has been encouraging startups that contribute to the digital economy, local knowledge-based employment, preventing brain drain, increasing exports and attracting foreign direct investment. CNI has been working through the Youth Entrepreneurs Forum.
