NRN investments have generated 8,276 jobs in nine districts: Report
Sun, Oct 18, 2015 11:05 AM on External Media,
Non-Resident Nepalis (NRNs) have invested a total of Rs 29.85 billion in nine districts and their 67 business ventures have generated employees to 8,276 people, a survey shows.
A survey commissioned by Non-Resident Nepalese Association (NRNA) and carried out by Society of Economic Journalists-Nepal (Sejon) reveals NRNs' investment is concentrated in the service sector. Nearly three-fifth of NRNs' total investment in Nepal is in service sector.
The survey covers investments made until the end of 2014.
NRNs' investment is concentrated in Kathmandu Valley. Around 78 percent of total their total investment has been made in the Valley, survey shows.
Speaking at a program organized to unveil the report, NRNA President Shesh Ghale said the study gives evidence that NRNs are making investments in Nepal.
The study that sampled Kathmandu, Lalitpur, Bhaktapur, Makawanpur, Gorkha, Baglung, Siraha, Chitwan and Kaski districts has also shows service sector generated highest number of jobs (3,587), followed by energy-based industries (2,645 jobs) and manufacturing sector (1,834 jobs).
According to the study, 42 percent of NRN investors and industry operators termed poor law and order condition as the major deterrent to investments. Similarly, 30 percent reported lack of adequate electricity and 22 percent informed inconsistent government policy as challenges while doing business in Nepal. Similarly, 52 percent of investors said dealing with politically-colored trade unions is a difficult task.
The study has recommended to the government to improve law and order situation, and strengthen investors' and consumers' confidence as well as ensure basic industrial infrastructures such as regular electricity to industries generating large number of jobs. It has recommended to the government to curtail political activities of trade unions and bring necessary policies to ensure healthy industrial relations between employers and employees.
NRNA has already decided to invest in a medium-scale hydropower projects having capacity of up to 100 MW. Its first investment in hydropower was in Dordi Khola Hydropower Project (27 MW) in Lamjung district. A group promoted by Ghale has already started to build a five star hotel in Kathmandu with an investment of Rs 8 billion.
Source: Republica
