Nepal to fast track Karnali, Arun projects: Jha

Nepal has assured India of quick resolution of issues pertaining to Indian investment in Nepal.
Industry minister Anil Jha in his meeting withminister of commerce industry and textiles Anand Sharma in New Delhi, today, singled out Karnali and Arun power projects for fast-track clearances. Sharma said that “the move on the part of Nepal will send a very positive signal for deepening of economic relations and boosting investor confidence.”
Indian firms are the biggest investors in Nepal accounting for about 47.5 per cent of total approved foreign direct investments (FDIs). There are about 150 operating Indian ventures in Nepal engaged in manufacturing, services — banking, insurance, dry port, education and telecom — power sector and tourism industries. Indian joint ventures in Nepal have contributed significantly to increase in Nepal’s exports to India.
They also provide direct employment to around 30,000 Nepalis and indirect employment to more than twice that number. According to the current Indian FDI policy there is no restriction for inflows of FDI from Nepal. Both the governments have also signed the text of bilateral investment protection and promotion agreement (BIPPA).
Sharma assured Jha of continued special relationship with Nepal.Jha asked the Sharma for better concessions for the jute products from Nepal. He also made a strong pitch for further concessions for Nepal imports and more investments from India.
The bilateral trade between the two countries has increased from $1,985 million in 2009-10 to around $2,700 in 2010-11 registering an increase of around 36 per cent.
Exports from Nepal to India have also grown from $452 million in 2009-10 to $476 millionin 2010-11, an increment of around 5.3 per cent. “Our growing mutual cooperation in the development of the hydropower potential of Nepal confirms the special relationship between our two countries,” Sharma said, adding that India would like to accelerate such cooperation which would usher in a new era of prosperity for Nepal.
It is estimated that sale of electricity from the 40,000 MW hydropower potential of Nepal can generate revenues of more than $10 billion per annum.
Nepal could also attract a lot of investment in manufacturing/services sector by overcoming its present power shortage.