Plan to attract Rs 500 billion worth investments

The government is planning to attract some Rs 500 billion worth investments under the ambitious Nepal Investment Year 2012-13 campaign.
"We are preparing a detail study of 50 mega projects," Investment Board chief executive Radhesh Pant, said here today.
The Board — that looks after only mega projects of above Rs 10 billion — has been actively working out on policy reforms and harmonisation, and preparing at least 50 project profiles that will bring some Rs 500 billion in the country that has been witnessing a sluggish growth since last three fiscal years. "The foreign investments will help propel economic growth," he added. "The country needs Rs 600 billion to achieve double digit growth."
"Large scale investment is crucial for economic growth," said Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Vaidya. "For growth of about eight per cent, we need 40 per cent of the gross domestic production (GDP) to go in the investment but our savings rate is very low," he said, reasoning for the foreign investment.
Despite various challenges, Nepal Investment Year will be a turning point to mobilise investment — both local and foreign — for the eonomic development, Vaidya said. "The campaign will help bring business and economy into the forefront and help initiate in garnering broad consensus on investment related policies and issues."
Nepal Investment Year will show the international investors that Nepal has investment-friendly environment and also identify its strong points as a potential investment destination.
The umbrella organisation of the private sector claims that it will also help identify the potential investors and network with them, apart from help Nepali investors connect with foreign investors.
As the global competition for investment is becoming more rigorous, the international investors seek incentives, Vaidya said, adding various countries have declared special incentives to lure foreign Direct Investment (FDI) as investors are choosy and capital is mobile.
The FNCCI will help the board work for the improvement in the investment climate, though the investment climate has improved in recent years, he added.
However, the political ownership is a major challenge, according to private sector. The Board might help create political consensus among the political parties to minimise the risk, as frequent changes in governments and of governments lead to policy instability and due to lack of ownership of the national campaign, the plans, promotion and marketing of the country might get hit.
The FNCCI has planned mega show — international investment conference — in 2013, investment portal as FDI information centre and hopeful of agreement of at least 10 mega projects within the event period, to support the national campaign that has envisioned to double the investment size, become one stop service to investors, increase domestic investment and FDI, bi-lateral, and multilateral aid in infrastructure sector like energy, road, irrigation and social service sector.
The Board has also formed Investment Promotion sub-committee led by Vaidya; Investment Project Identification sub-committee led by Pant; Act, Rules and Policies Revision sub-committee led by National Planning Commission vice chair Deependra Bahadur Kshetri to make the Nepal Investment Year a great success.

FNCCI priority sectors
•Water and water related projects
•Agriculture and Agri processing
•Infrastructure
•Tourism
•Services
•Mine and Minerals based Industry