Kathmandu, July 31

The country’s commitment of delivering a new constitution to pave the way for economic prosperity seems to have generated huge interest from international investors, as foreign direct investment (FDI) commitment increased by a whopping 235 per cent to Rs 67.25 billion in fiscal 2014-15, compared to the previous fiscal.

According to the Department of Industry (DoI), which is authorised to approve FDI of up to Rs 10 billion, this amount of the investment commitment is dedicated for 359 projects of various sectors that is expected to generate employment for 12,711 individuals.

“FDI commitment in the last fiscal was highly encouraging,” said Maheshwor Neupane, director general of DoI. “Now, we should focus on institutional and legal reforms along with the delivery of the new constitution to materialise this commitment into real investment.”

Investment commitment in the energy sector has topped the list, with total commitment of Rs 54.29 billion in five energy projects. Service sector received investment commitment worth Rs 5.49 billion, followed by Rs 4.30 billion in the tourism sector. Likewise, manufacturing sector received investment commitment of Rs 2.14 billion, according to DoI.

Apart from the categories mentioned, FDI commitment in agro and forestry-based industries stood at Rs 735.88 million, minerals (Rs 190 million) and construction (Rs 100 million).

Neighbouring China and India topped the list in terms of country-wise commitment. FDI commitment from China accounted for Rs 7.29 billion and Rs 6.54 billion from India. South Korean investors also seem to be keen to invest in Nepal, as the commitment from the country has grown significantly. FDI commitment from South Korea in fiscal 2014-15 stood at Rs 2.03 billion, followed by Hong Kong (China) worth Rs 1.07 billion.

A majority of the FDI commitment is for the 14 large-scale projects worth Rs 58.42 billion. FDI commitment worth Rs 4.07 billion is for 37 medium-scale projects and Rs 4.79 billion for 309 small-scale projects, as per DoI.