FDI commitment all-time high

FDI commitment all-time high
ArthaExpress, 31-Dec-07

If there is anything to cheer for Nepal in a gloomy economic scenario, it´s a significant growth in foreign direct investment commitment — thanks to increased interest of investors in hydrop-ower and real estate.

The FDI commitment during the first four months of current fiscal year crossed Rs 4.1 billion, a whopping rise of over 28 per cent against Rs 3.22 billion during the fiscal 2006-07, also broke all previous records in terms of share of foreign investment, according to the Department of Industry.

Till mid-November, the department had given its nod to 62 projects with total project cost of Rs 4.63 billion, of which over 88 per cent is FDI. These projects are estimated to generate employment to 2,550 people.

Tilak Ram Sharma, director general at DoI, said, “Confidence of foreign in Nepal has improved in recent times.” Sharma said more foreign investors are keen to invest in capital-intensive industries such as hydropower, manufacturing and real estate. “The non-resident Nepalis have also shown interests to invest in mega projects. The recent amendment in investment policies for infrastructure development has also helped to lure ,” he added.

A real estate project promoted by an NRN group from Australia worth over one billion rupees got DoI nod this year.

Till November 14, DoI had approved 1,345 projects with equity participation of foreign investors. Of the approved projects, only 401 are operational, while 127 are under construction and 122 have got license to operate. The total cost of these projects is Rs 102 billion, with 36 per cent (Rs 37 billion) FDI. In fiscal 2006-07, FDI commitment from India topped the list with 356 projects being approved. Chinese companies bagged 158 projects, Japan 125 and the USA got 121 projects.