Nepal eager to welcome private sector investment in energy: NICCI President

Nepal-India Chamber of Commerce and Industry (NICC) led by president Sunil KC met with the visiting Indian Minister for Power, Housing and Urban Affairs Manohar Lal Khattar on Wednesday and appraised him of energy cooperation possibilities between the private sectors of two neighbouring countries.

During the meeting, NICCI president KC appraised him of immense possibilities of energy cooperation between the private sectors of both the countries as the Power Trade Agreement has already been signed by two governments. “NICCI will help facilitate the investment in energy from Indian private sector to take maximum benefit from recently signed Power Trade Agreement,” KC said, adding that the Business-to-Business (B2B) collaboration is key to expand the horizon of the trade and investment between the two South Asian neighbours. “The recent Nepal-India power deal followed by Tuesday’s signing of memorandum of understanding on cross border transmission line has opened new avenues for both the countries to join hands in economic development.”

Nepal and India signed a crucial memorandum of understanding (MoU) on cross border transmission line on Tuesday in the presence of Minister for Energy, Water Resource and Irrigation Deepak Khadka and visiting Indian Minister for Power, Housing and Urban Affairs Khattar. The MoU, signed as per the agreement made by the 12th meeting of the Nepal-India Secretary Level Joint Directive Committee held in New Delhi two months ago, will help establish a joint company for the construction of 400 KV Inaruwa-New Poorniya and Dodhara-Bareli Transmission Line.

The Indian Minister arrived Kathmandu on Tuesday at the invitation of Minister for Energy, Water Resources and Irrigation Khadka, and is leaving for New Delhi Wednesday evening. 

Immediately after arriving Kathmandu, the visiting India Minister Khattar along with Minister Khadka jointly inspected the Arun III Hydropower Project in Sankhuwasabha also.

The visiting Minister Khattar said that Nepal is a country with immense hydropower potential and that prosperity can be achieved through the energy sector. Stressing that the Arun III Hydropower Project should be completed on time as it would benefit both the countries, he said Indian government is ready to invest more in Nepal's hydropower sector.

Earlier, the Governments of India and Nepal signed a long-term Power Trade Agreement on January 4, 2024. The 25-year long deal aims to export 10,000 megawatts (MW) of electricity to India in the next ten years.

NICCI has been facilitating trade and economic ties between Nepal and India. “NICCI will be happy to welcome more private sector power players in Nepal,” KC added. On the occasion, KC presented visiting Minister Khattar, the token of love on behalf of NIICI, and the ‘Business Climate Survey for Indian Companies in Nepal’ done by NICCI to promote Indian investment in Nepal.

Ethical wealth creation key to growth and bridging inequality: Dr Subramanian Krishnamurthy

Ethical wealth creation is key to growth and bridging inequality, according to International Monetary Fund (IMF) executive director and former chief economic advisor of the Government of India, Dr Subramanian Krishnamurthy Venkata.

Speaking at the first Prabhakar SJB Rana Memorial Lecture as the keynote speaker in Kathmandu today, he also stressed religious capitalism. “Wealth generation is not a necessary evil but a boon – and this is an ideology that has been adopted from the ideologies of the East – built from dharmic capitalism and the civilizational ethos that enabled our ancestors to pursue and receive enormous success,” he added.

“Socialism and communism are the ideologies that originated in the West – not in the East," he said, adding that the entire ideology was bankrolled by a capitalist. “The dharmas – four purusharthas that include Dharma, Artha, Kaama and Mokshya are parts of our ethos,” Dr Subramanian said, reminding the Sri Suktam. “Wealth is not a necessary evil, but a boon to be received. So, we have to disband the imported ideologies.”

He also reminded ethical wealth creation for a prosperous nation, in the program organized by the Nepal-India Chamber of Commerce and Industry (NICCI) to honor the late Rana’s contribution to the economy. “Inclusive growth is critical and India has been able to have an inclusive growth. India’s poverty has decreased and consumption inequality has declined significantly, according to the latest survey.”

The speakers, on the occasion, remembered late Prabhakar SJB Rana as a towering figure, very close to the political powers, who had maintained good relations with political parties but never took advantage for his benefit.

Remembering his father, Siddhartha SJB Rana, chairman of Tara Management, said that Nepal was ahead of India in the 90s in opening up the economy, but Nepal somewhat stalled. “A disheartening thing is that Nepal has prioritized changing the political systems without addressing economic needs,” he said suggesting that the Bhairahawa and Pokhara Airports could have been fully operational, had the government well planned.

The NICCI has organized 'the Prabhakar SJB Rana Memorial Lecture: Celebrating Leadership, Vision, and Legacy' to celebrate his legacy and contribution to the economy and nation.

Late Rana, the founder President of NICCI, played a pivotal role in Nepal's development by founding not only NICCI, but also a range of vital business and social organizations such as the Hotel Association of Nepal (HAN), Independent Power Producers’ Association, Nepal (IPPAN), PATA Nepal Chapter, and Nepal Heritage Society.

Likewise, Prasanna Srivastava, Deputy Chief of Mission, Embassy of India to Nepal in Kathmandu, noted some of the major achievements of the Indian government in Nepal. He highlighted the recent commerce secretary-level talks that followed the trade and transit meet in January this year. He also highlighted Nepal-India engagement in facilitating bilateral trade and energy, the tripartite power agreement between Nepal, India, and Bangladesh, and the net revenue Nepal earned by exporting energy, apart from digital connectivity.

“The NICCI is honored to remember Mr Rana as a visionary leader, entrepreneur, and trailblazer in Nepal’s overall business, hospitality sector, industry and hydropower,” NICCI President Sunil KC said, on the occasion, “The NICCI will organize Prabhakar SJB Rana Memorial Lecture every two years.”

NICCI Immediate Past President (IPP) Mrs Shreejana Rana, on the occasion, remembered late Prabhakar SJB Rana as a trailblazer in Nepal’s private sector.

NICCI, on the occasion, also launched “Business Climate Survey for Indian Companies in Nepal, 2024." The survey, led by Kuber Chalise, and supported by Sweta Karki and Sajina Rai, have given recommendations for the government to help facilitate the Indian joint ventures (JV) so that they can create more jobs in the country and pay more tax to the government coffer.

NICCI vice president and Surya Nepal managing director Ravi Kumar Rayavaram, on the occasion thanked all the participants.

The NICCI, a not-for-profit organization, was founded in 1993 by late Prabhakar SJB Rana. It has played a key role in promoting bilateral economic relations focusing on key sectors such as trade, transit, logistics, tourism, energy, infrastructure, and FDI since its establishment.

Nepal-India discuss bilateral economic ties

Nepali private sector representatives and Indian officials discussed on bilateral trade and tourism promotion in both the countries.

Nepal-India Chamber of Commerce and Industry (NICCI) and the Indian Embassy officials in Kathmandu today held a brainstorming session on strengthening economic ties between the neighbours at the Embassy, in Kathmandu, according to a press release issued by the Indian Embassy in Kathmandu.

Indian Embassy deputy chief of mission (DCM) Namgya Khampa welcomed the NICCI executive committee, the press release reads, adding that the NICCI members briefed the DCM on the investment scenario in Nepal. "On the occasion, DCM Khampa assured support to NICCI endeavors, especially in tourism, trade and investment in Nepal."

The brainstorming session included issues ranging from the promotion of tourist circuits including Buddist, Ramayana, Mahabharat, Sikh and Shiva Shakti, attracting Indian investments into Nepal, especially in the emerging sectors and business opportunities in construction and agriculture sectors.

The NICCI also proposed to bring out a detailed plan of action on these issues, including organisation of India-Nepal Partnership Summit, Financial Sector Summit and establishment of an India Nepal Centre of Innovation to promote budding entrepreneurs.

They also discussed recent developments and possible cooperation in the railway sector, the release adds.

Businessman Saurya Rana no more

Former chair of Nepal-India Chamber of Commerce and Industry (NICCI) Saurya Shamsher Rana passed away today morning.

Rana underwent heart surgery at Mediciti Hospital in Kathmandu four days ago. His last rites were performed at Pashupati Electric Crematorium today afternoon.

Rana, who was associated with Sipradi Trading, the authorised distributor of Tata vehicles in Nepal, since almost 25 years after returning to Nepal from working in India and England. He is remembered by his collegues as a soft spoken but with deep knowledge of India-Nepal trade and tourism issues. He is survived by his wife, a daughter and a son.

The Nepal-India Chamber of Commerce (NICCI) – issuing a press note – condoled Rana's untimely death.

Rana becomes first female president of NICCI

Shreejana Rana has become the first female president of Nepal India Chamber of Commerce and Industries (NICCI) from the 25th annual general meeting of the bilateral chamber.
Outgoing president of the chamber Saurya SJB Rana handed over the presidency to Rana during a ceremony held in Kathmandu today. She was serving as the vice president of the chamber in the last executive committee.
Speaking on the occasion, the new president said she intended to further promote tourism between Nepal and India by creating a platform for bilateral cooperation through a working forum. “I hope to take forward the important initiatives already set in motion by NICCI – from coordination between bi-national chambers and ensuring consistent and corresponding recommendations to discussion of foreign trade, transit, railways and hydropower – earlier.

Private sector suggests premier to seek implementation of earlier agreements with India

The private sector has suggested Prime Minister KP Sharma Oli to seek assurance of implementation of previous agreements with India during the latter's visit scheduled for next week.
Asking the 'nationalist PM Oli' to focus on improving relations with the southern neighbour and lure more Indian investment into the country, the private sector today at the meeting with him and prominent ministers of his cabinet at PM's official residence Baluwater, also recommended the premier to seek assurance of implementation of Pancheswar Multipurpose Project to harness Nepal’s water resources for the benefit of both the nations and better utilisation of line of credit facility extended by India.
Signing the Mahakali Treaty and Pancheswar Multipurpose Project, more than 2 decade ago, the incumbent premier Oli had then claimed that Nepal would get Rs 130 billion annually from India from the project. However, in last almost 25 years down the line, thousands of cubic metres of water has flown down the Mahakali river but the country has not received a single penny but is reeling under acute shortage of electricity as the power cut has reached 13 hours a day, currently.
Likewise, the country is facing shortage of essential drugs and fuel due to blockade by India since – against the Nepal's right to land-locked country – last four months after the promulgation of Constitution by the Constituent Assembly (CA) on September 23.
Thus, the private sector asked the premier to ensure free and smooth trans-shipment facility for Nepal from India as a land-locked country. Some 20,000 industries have been closed and around 400,000 have been employed due to Indian blockade since last months that created shortage of raw materials and petroleum products through Nepal-India border customs. Indian Oil Corporation (IOC) is the sole petroleum products suppliers to Nepal Oil Corporation (NOC). But the IOC has not been supplying petroleum products, according to the agreement saying that it has no orders from Indian government to supply fuel to Nepal.
The visit is also expected to clarify on the bilateral agreements as time and again Nepal has been blocked the essential supplies including petroleum products and medicines despite the bilateral agreements, regional and sub-regional agreements, and global agreements including Nepal's right to land-locked countries.
The premier had invited the private sector for consultation on pertinent issues that need to be raised during his visit to the southern neighbour scheduled from February 19 to 24.
According to Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Pashupati Murarka, the prime minister also asked for an integrated proposal from the private sector.
"The government has also identified matters that need to be raised during my visit to India, and we will also integrate the proposal from the private sector during the talks," Murarka quoted the prime minister as saying during the talks with Private sector representatives including FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce (NCC), Nepal-India Chamber of Commerce and Industry (NICCI).
The prime minister also told the private sector that his visit will be focused on improving and strengthening bilateral ties with India. Deputy prime minister and foreign minister Kamal Thapa, finance minister Bishnu Prasad Paudel, commerce minister Deepak Bohara, industry minister Som Prasad Pandey and high-level bureaucrats were present during the meeting.
A 15-member private sector team will also be part of the Prime Minister’s delegation to India. Apart from New Delhi, Oli is also scheduled to visit the economic capital of India, Mumbai.

Hydropower development dominates Nepal-India talks

Hydropower development dominated the first talk show of the monthly series of Nepal-India Business Conclave organised jointly by Nepal-India Chambers of Commerce and Industry (NICCI) and Indian Embassy in Kathmandu, here today.

A host of speakers, on the occasion, highlighted hydropower as a panacea not only for the economic development of the country but an effective tool to bridge the widening trade deficit between the two South Asian neighbours.

Nepal would not be able to minimise trade deficit unless it harnessed the maximum identified hydropower potential, commerce secretary Janardan Nepal said, adding that the government has been making every possible effort to arrest the growing trade deficit with India.

Likewise, NICCI president Sashi Raj Pandey, on the occasion, said that Nepali products should be competitive enough to secure place in Indian market.

It is essential to boost hydropower also to reduce cost of production and make domestic products competitive in the Indian market, said president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya.

Due to higher production costs, Nepal’s products are losing competitive edge in the Indian market,” immediate past president of NICCI Arun Chaudhary said, asking the government to promote hydropower and export it to India to bridge the widening trade deficit.
Nepal has posted a total trade deficit of Rs 438.67 billion in the first 11 months of the current fiscal year, according to the data of central bank that has revealed that the trade deficit with India alone stood at Rs 315.92 billion.
The businessmen of both the countries, on the occasion, dwelt on various aspects of Nepal-India trade-related problems. They also emphasised on the need to further expanding and diversifying trade and business relations between the two countries for the common benefit.

Presenting the overview of Nepal-India trade former commerce secretary Purushottam Ojha said both the countries must adopt international models and walk the talks according to the bilateral agreements. “The world has seen various changes in last 35 years, but Nepal and India has not been able to adopt and upgrade bilateral agreements,” he said, requesting to connect the customs of both the countries via net and go for paperless system to increase efficiency of the customs that can help boost trade.

He also requested the Indian government to let Nepal use Visakhapatnam Port that is expected to help Nepal get more flexibility in its exports and increase competitiveness.

India ready to sign PTA with Nepal

KATHMANDU: Charge-d-affaire of the Indian Embassy in Nepal Joydeep Mazumdar said India is ready to sign Power Trade Agreement (PTA) with Nepal. “India is ready to sign PTA anytime soon,” he said, during the first talk show of monthly Nepal-India Business Conclave, organised jointly by Nepal-India Chamber of Commerce and Industry (NICCI) and the Indian Embassy in Nepal, in Kathmandu on Friday. “India will sign the PTA once Nepal ensures the energy can be exported to India,” he added. The PTA is expected to liberalise imports and exports of electricity between the two countries. The agreement will not only open door for more Indian investment but also foreign investment in mega hydropower projects in Nepal – as it will guarantee the Indian market access for Nepali hydel projects – that is currently relying on Power Exchange Agreement (PEA) for mostly import and also for export of electricity from and to India. The PEA has, however, limitation on electricity trading.

Indian investments generate 30,000 employment in Nepal

KATHMANDU: Indian investors, who pumped in $3.25 million foreign direct investment into Nepal, have generated some 30,000 employments, according to a top Indian diplomat said on Friday. “Indian investors have played a key role in the economic development of Nepal with 501 Indian joint ventures accounting for FDI worth Rs 3.23 billion ($3.25 million) said Charge de' affairs of Indian Embassy at Nepal Joydeep Majumdar, addressing the first talk show of the monthly talk series of Nepal-India business conclave jointly organised by Nepal-India Chamber of Commerce and Industries (NICCI) and Indian Embassy in Kathmandu. “The extensive privileges, facilities and assistance extended by India to Nepal, coupled with India's own economic growth and a market of 1.2 billion people, could be instrumental in driving Nepali economy towards high growth,” he said, adding that Nepal government should also walk hand-in-hand complementing India with renewed commitment for improving the investment and business climate in Nepal. “Indian firms are the biggest investors in Nepal, accounting for 47.5 per cent of the total FDI projects approved by the government with a total investment of IRs 42.53 billion,” former commerce secretary Purushottam Ojha added.

Attracting more FDI key to economic development: DPM

Deputy prime Minister and finance minister Bharat Mohan Adhikari said that Nepal needs to attract foreign direct investment (FDI) in the hydropower, infrastructure and mines sectors.
"Nepal needs to attract more FDI from other countries including from India,” he said, inaugurating the 16th annual general meeting (AGM) of Nepal India Chamber of Commerce and Industry (NICCI) here in the valley today.
“The current security related issues are temporary because of the transition period the country is passing through,” he said, adding that Nepal should think of increasing its exports and take advantage from the rising economic powers like China and India. “India’s help is crucial in solving the power crisis and boost for the economic development,” he added.
“India has contributed a lot to the development of Nepal,” said Indian ambassador to Nepal Rakesh Sood. “Around 45 per cent of FDI in Nepal is from India, he said, adding that the Indian investments in Nepal have generated some 30,000 jobs directly and the double the number indirectly to the Nepalis.
However, he complained of the discouraging investment environment in Nepal for the Indian investors currently. “The current issues have discouraged the new investments from India,” he said, also urging Nepal to check on diversion of third country goods to India and Intellectual Property Rights violation of the popular Indian brands.
Sood opined that the NICCI can play a key role in boosting Indian investors confidence and further strengthen the bilateral economic and trade ties.
On one hand trade ties with India is increasing and the other the trade deficit is also increasing that has doubled to Rs 317 billion between 2008 and 2010.
"Nepal has to think on how to bridge the trade deficit gap,"
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi, said, adding that Nepal could not take advantage of the Nepal-India Trade Treaty -- due to its own internal reasons -- that could help reduce the trade deficit.
Joshi also urged to open custom points and expedite refund of excise duty as stated in the treaty. Similarly, Nepal Chambers of Commerce (NCC) president Surendra Bir Malakar also requested to simplify the cross border trade. "Revised trade treaty between the two South Asian neighbours has addressed many issues," he said, adding that both the countries should encourage formal trade.
Welcoming the guests, NICCI president Arun Kumar Chaudhary said that Nepal could not harness the hydropower despite the regular power outage that could derail the development in the long run. "More than trade deficit, Nepal is suffering from Balance of Payment (BoP) deficit," he said, adding, there will be more issues once the trade increases. "The NICCI is playing the role of facilitator in the issues," he added.
NICCI has been established in 1994 to promote or make arrangements for promoting contacts and co-operation among industrialists, businessmen and other professional groups of Nepal and India, and work as a non-profit-making organisation.

Change of guard
KATHMANDU: NICCI on Tuesday elected its new team led by Sanjiv Keshava, general manager of Surya Nepal. He was executive committee member in the last committee led by Arun Kumar Chaudhary.