Published On: March 6, 2023 10:00 AM NPT By: Dilip Poudel
KATHMANDU, March 6: The government has prepared the legal basis for the 10 billion rupees worth project announced to be established by the Non-Resident Nepali Association (NRNA). To encourage non-resident Nepalis to invest in Nepal, the conditions for establishing an investment company have been amended.
The Ministry of Industry, Commerce and Supply (MoICS) has amended the provision of establishing an investment company in the Foreign Investment and Technology Transfer Act, 2019. According to the revised provision, it is provided that the company established by the joint investment of the Government of Nepal and non-resident Nepalis can invest not less than 100 million rupees in counter-projects in the areas permitted by the Act. With this arrangement, the association has opened the way to work through the NRNA Nepal Development Fund worth 10 billion rupees.
In the previous investment arrangement, there was no provision for the Government of Nepal and non-resident Nepalis to invest jointly. “Now, Non-Resident Nepalis have opened a legal way to open a company in Nepal in collaboration with the Nepali government,” Badri KC, President of NRNA said. "The project, which has been delayed due to legal hurdles, will finally proceed.”
The government announced in the national gazette that the government of Nepal and non-resident Nepalis will be allowed to establish an investment company for joint investment.
NRNA has been lobbying for the amendment of the law stating that collective investment worth 10 billion rupees can be made in Nepal. According to the NRNA, the investment project worth 10 billion will go ahead after the amendment to the conditions for establishing an investment company. "Now the project will proceed," said President K.C.
To encourage non-resident Nepalis to invest in Nepal, the conditions for setting up a company have been revised, said Director General of Industries Department Ram Chandra Tiwari. "In the form of industry, non-resident Nepalis will also be allowed to open companies in joint ventures with the government. It is believed that this will make it easier for non-resident Nepalis to invest in Nepal," he said.
NRNA Nepal Development Fund was established by the NRNA with an authorized capital of 10 billion rupees to encourage non-resident Nepalis around the world to invest in the country. This company has been registered in the Registrar of Companies office. It has been stated that five percent investment of the Nepal government will be in the registered company with an authorized capital of 10 billion.
Som Sapkota, the spokesperson of NRNA, said that the government will invest in the viable project through the fund. "The legal basis has been prepared," said Sapkota, "Money has started to be collected in the fund." He said that the fund has been set up for Nepalis living abroad to invest collectively.
The chairman of the fund is the founding president of Non-Resident Nepali Association Dr. Upendra Mahato. Not only investment but also technology, skills, corporate culture and good governance are expected to come in from abroad. NRNA has been conducting the 'Nepali for Nepali' campaign. Since its inception, the association has been continuously working for the prosperity of Nepal, its social upliftment, charity, professional and economic development.
The association claims that a large amount of commitment has been received in this company, which is also promoted by the government with 5 percent investment. According to the association, the aim of the company is to invest in Nepal's enterprise, business and transport and infrastructure sectors from the fund. Also, there is a plan to issue a primary share IPO targeting non-resident Nepalis for investment.
Non-resident Nepalis have been promoting various projects with personal investment before. The association has been doing various social work across the country. The association has constructed and handed over 573 private houses in Dharche Rural Municipality Ward No. 4 in Laprak, Gorkha, which was damaged in the 2072 earthquake. Non-resident Nepalis from all over the world provided financial support for the settlement, which was built at a cost of more than 576 million rupees.
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