Investment pledges double in first half of FY

KATHMANDU, JAN 27 -

Investment pledges doubled in the first half of the current fiscal year from the same period last year with positive political developments and announcement of Nepal Investment Year 2012-13.

According to the Department of Industry, investment commitments from domestic and foreign investors worth Rs 330 million for 97 enterprises have been made in the industrial sector in the first six months of this year. The proposed undertakings are expected to generate 5,000 jobs.

During the first six months of fiscal 2010-11, investment pledges were worth Rs 150 million for 66 ventures.

Industrialist Manish Kumar Agrawal said the amount of the proposed investments is lower than what Nepal has expected. “But it provides a ray of hope for the entire industrial community,” he added.

Like in the past, the service sector topped the chart in terms of attracting investments during the review period.  This sector has drawn 51 projects with investment commitments worth Rs 160.23 million. They are expected to generate 2,000 jobs. “The amount of investment proposed in the service sector accounts for more than half of the total proposed investment,” said Dhruba Lal Joshi, spokesperson of the DoI. “Most of the enterprises under the service sector have been registered as resorts and hotels, software development companies and language and training centres, among others.”

Similarly, the tourism sector has attracted 20 projects worth Rs 30 million that are expected to create employment for 552 persons.

Joshi said that the manufacturing sector has attracted 15 enterprises with a proposed combined investment of Rs 125 million. Most of the planned undertakings are cement factories, agro processing units, sugar mills and fast food producing units. They are expected to provide jobs to 800 persons. “This is no remarkable investment commitment in the agricultural, energy and mineral-based industry sectors,” added Joshi.

Source: Kantipur