FDI Draft Presented

The task force for creating the foreign investment and technology transfer policy presented the draft of the policy to Mahendra Raya Yadav, minister for industry, on Wednesday. Presenting the draft, Puspa RajKarnikar, convener of the taskforce said that the new policy would widen the area of foreign investment and remove the existing hurdles. "The draft has been prepared keeping in mind the changes world economy has gone through," he said.

The proposed policy has opened all industries to foreign investment, except cottage and micro enterprises. In a major change to Nepal's foreign investment policy, the task force has suggested the opening up of the secondary market to foreign investors. So far, Foreign Direct Investment (FDI) could only make its way into the country as equity investments. "The investments by Non-resident Nepalese (NRN) will be treated as foreign investment," Rajkarnikar said. "NRNs will be given all facilities that foreign investors are getting."

The proposed policy has envisaged a separate body to come up with faster decisions on administrative matters related to foreign investors. The proposed body has to give a decision within 15 days on technical issues. Likewise, in order to encourage the private sector, the government won't interfere on the price valuation of the products. However, the proposed policy has maintained that the government can give necessary instruction if it is found that price valuation is against consumers' rights.

Similarly, the policy has also allowed companies to open their branches abroad, with permission from the Nepal Rastra Bank. If there is a conflict in the industry, foreign investors who have a minimum investment of US $ 10 million will have the privilege of choosing the medium to resolve the conflict. Speaking at the programme, Dan Bahadur Chaudhary, state minister for industry, said he would try to endorse the draft through the Council of Ministers as soon as possible.
Source: ekantipur.com