The private sector has taken the signing of Bilateral Investment Promotion and Protection Agreement (BIPPA) a significant achievement in the economic regime. [break]
Chairperson of the Federation of Chambers of Commerce and Industry (FNCCI), Suraj Baidhya said the agreement has sent a positive message to attract Indian investment in Nepal, adding the agreement offering long-term advantages is historical.
Signing of such agreement with other countries will boost up confidence and encourage investors for investment flow, he noted, adding that it has made Indian investors interested to flow investment on hydropower sector.
In the presence of visiting Prime Minister Dr Baburam Bhattarai and his counterpart Indian Prime Minister Dt Manmohan Singh, three agreements including the BIPPA were signed between Nepal and India at Haidrabad House in New Delhi on Friday.
At the separate interactions held for two days with Indian business and industry community, Prime Minister Dr Bhattarai had called for them to invest in the areas of infrastructure, tourism, agriculture, energy, among other.
Addressing the interaction with business people associated to the industrialists Confederation of Indian Industries and FNCCI Saturday, Prime Minister Bhattarai said that he signed the BIPPA taking a high risk.
The agreement opening up avenues for investment is a milestone; Nepal is committed to protect the Indian investment, PM Bhattarai added.
It has various types of models in practice, said Finance Minister Barsaman Pun, adding discussion will be held as to which model to be adopted.
Such provision is brought to effect to guarantee the protection of investment especially during big crisis, war and difficult situation.
There is no obligation to provide with compensation to the losses incurred due to the workers’ strike, bandh and other agitations, Industry Minister Anil Kumar Jha clarified. Minister Jha signed the agreement on behalf of Nepal on Friday.
The Indian side has assured to put the double taxation system to an end at the earliest, FNCCI chair Baidhya said, stressing on the expansion of electricity transmission line to address existing energy crisis in Nepal.
Chairperson of the Nepal Chamber of Commerce, Suresh Kumar Basnet said the agreement has upped the excitement of Indian investors and expressed that the government will also assure protection of domestic investment.
Indian side has made commitment for the investment flow of four billion US Dollars; it has facilitated the environment for investment boosting, energy entrepreneur Gynendra Lal Pradhan commented.
Industrialist Diwakar Golchha said the agreement has imparted a positive message to Indian entrepreneurs and investors.
The agreement will prove to be an assistance to reduce trade deficit and encourage Indian investors, said PM’s economic advisor Rameswor Prasad Khanal.
Indian industrialists have been commenting that Nepal has no investment-friendly environment and industrial security.
They have been putting forth their demand to bring appropriate laws to facilitate investment flow and protect investments.
Former Chairperson of Confederation of Indian Industries, Rajib Kaur informed that panels have been formed to undertake feasibility study in collaboration with Nepalese and Indian entrepreneurs for the development of hydropower, trade and finance and infrastructure.
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