Investment Board Nepal approves FDI proposal of Rs 10.54 billion from Motrex Co Ltd
KATHMANDU, March 16: The Investment Board of Nepal (IBN) has approved a proposal for foreign direct investment (FDI) worth Rs 10.54 billion from a South Korean firm, Motrex Co Ltd, for setting up a vehicle manufacturing and assembly plant in Nepal.
The South Korea-based company is mainly engaged in the manufacturing and distribution of automotive parts. The company’s products include audio-visual navigation (AVN), audio video (AV), around view monitor, head up display and rear seat entertainment (RSE).
Maha Prasad Adhikari, CEO of IBN, told Republica the 35th meeting of the board decided to approve the project that will bring over Rs 10.54 billion in FDI for establishing a vehicle manufacturing and assembly plant.
He said the South Korean company will assemble four-wheelers in Nepal.
Similarly, the board meeting chaired by Prime Minister KP Oli, who is the chairman of IBN, again decided to extend the deadline for financial closure for the project developer of Arun III Hydropower Project.
According to CEO Adhikari, SJVN Arun-III Power Development Company Pvt Ltd (SAPDC), a fully-owned subsidiary of the Indian government’s Satluj Jal Vidyut Nigam Limited (SJVNL), will now have to attain financial closure for the 900-MW hydro-power project by June 30.
Earlier in November 2017, IBN had decided to extend the deadline by six months, to arrange funds for the project.
“As the project recently received the transmission license and it has already taken forward its construction work, we have decided to extend the deadline for the financial closure,” said Adhikari.
Meanwhile, the board meeting has also approved a list of 63 projects to be showcased at the upcoming Nepal Investment Summit which is scheduled for March 29-30. CEO Adhikari said the projects were finalized following feasibility studies. “The board will make presentations about these projects at the summit, along with their features, financial analysis and potential benefits,” he said, adding the board hoped to attract investors for these projects.
West Seti Hydropower, Sunkoshi-2, Sunkoshi-3, Hetauda Smart City, Dhulikhel Medicity, Second International Airport at Nijgadh, Special Economic Zone in Simara, East-West Electric Railway, Cold Stores, Warehouse and Processing Centers at Parsagadhi are some of the projects the government is showcasing.
Adhikari told Republica that over 400 delegates from 38 countries are participating in the investment summit.