Chancellor Dr Lohani highlights 6 bottlenecks in investment in Nepal

KATHMANDU, December 21 – Unclear transition, regulatory fragmentation, excessive agencies, local overlaps, no point of accountability and lack of contract enforcement are key bottlenecks in attracting investment in Nepal, according to Chancellor of the University of Nepal (UoN).

Addressing the 31st  annual general meeting (AGM) of Nepal-India Chamber of Commerce and Industry (NICCI) as a Keynote Speaker, on ‘Strengthening the Ecosystem for scaling Indian Investment in Nepal’, the former vice president of the Asian Development Bank (ADB) Dr Lohani highlighted 6 key bottlenecks and recommended Nepal government to act as a partner not gatekeeper. “From approval to facilitation the government needs to act as a partner not gatekeeper,” he said, adding that for these the change in mindset is important. “Investors don't come alone, ecosystems do and we should build ecosystem, from Incentives to insurance, and from bi-lateral to sub regional.”

He categorically recommended the government for policy certainty, speed and reliability “or else investments will bypass us due to unpredictability.”

Dr Lohani also recommended NICCI to provide structured feedback to the government. The AGM also witnessed a panel session – moderated by Engineer Lalkrishna KC – on ‘Private Sector Collaboration in Investment and Cross-Border Power Trading’, where the panelist talked about the scope for power trading by Nepali private sector.

Arunachal Pradesh Power Corporation managing director Neha Aggarwal, on the occasion, shared the experience of the intra-and-inter-country power trading of India.

Likewise, Electricity Regulatory Commission (ERC) chair Dr Ram Prasad Dhital explained the provisions for power trading and the latest development in Act.

During the discussion, Nepal Electricity Authority (NEA) managing director Hitendra Dev Shakya welcomed the private sector for power trading.

Indian Embassy First Secretary (Commerce Secretary) Suman Shekhar, on the occasion, shed light regarding Indian investment, particularly hydropower, in Nepal. He also invited the Nepali power producers to India in January in ‘India Energy Week’.

Former Ambassador of India to Nepal Manjeev Singh Puri asking Nepal to figure out the market, said that the Nepal is fortunate to have huge potential, and now needs to incubate new sets of private players. Delivering the special remarks, Deputy Chief of Mission at the Indian Embassy Dr. Rakesh Pandey informed Embassy’s initiatives in strengthening the Nepal India economic relations.

“Nepal is the most hydro-happening country,” said executive member of NICCI and vice-president of IPPAN Uttam Bhlone Lama. “After successful the hydropower generation, private sector now wants to focus on high- capacity transmission line,” he added.

Inaugurating the session Finance Miniter Rameshore Prasad Khanal, suggested private sector to find out how market operates to access the market. “NICCI can build a base for better relationships between Nepali and Indian investors,” he added.

Khanal also gave away the Certificate of Appreciation to the highest ta payer NICCI members including Bhotekoshi Hydropower, Soaltee Hotel, Unilever Nepal, Dabur Nepal, and Raj Bahadur Shah, the highest individual tax payer.

Finance Minister also launched the baseline survey report, ‘Nepal’s Fruit Candy (Titaura) Production: Local Skill Transfer, Prospects for Commercialization and Women Empowerment’. The report highlights the export potential of the Fruit Candy (Titaura), and recommended the government on ways to promote the women-led businesses especially the Medium, Small and Micro Entreprises (MSMEs).

In his closing remarks, the Industry, Commerce and Supplies Minister Anil Sinha apprised the audience that Foreign Direct Investment (FDI) has increased in several sectors.

Welcoming the guests, NICCI President Sunil KC briefed the activities that NICCI did in last one year, and the activities the NICCI is planning next year.

On the occasion, Federation of Nepalese Chambers of Commerce and Industries (FNCCI) President Chandra Prasad Dhakal, Confederation of Nepalese Industries (CNI) President Birendra Raj Pandey, and Nepal Chamber of Commerce (NCC) President Kamlesh Kumar Agrawal highlighted the role of NICCI in strengthening the bilateral trade and economic relations between Nepal and India.

NICCI vice president Kunal Kayal thanked all the participants on the occasion.