A memorandum of understanding (MoU) has been signed between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Department of Industry (DoI).

The agreement has been inked with the objective of conducting a qualitative and quantitative analysis of the manufacturing industries operating in Nepal. The MoU was signed by FNCCI President Shekhar Golchha and Director General of DoI, Jiblal Bhusal.

According to the agreement, rights to any intellectual property in relation to the database will be jointly owned by the FNCCI and the department. Both the organisations have committed to collect data related to small, medium and large scale industries within the next six months.

According to the mutual agreement, development opportunities in the industrial sector will be explored and the problems faced by the industries will be identified. Likewise, the agreement has mentioned cooperation in planning and policymaking to create a sustainable business environment, to formulate strategies and action plans to create an environment conducive to revenue growth and job creation.

The MoU states that the department will make maximum efforts to rehabilitate industrial areas, help in increasing exports from Nepal by developing quality and developing infrastructure as well as conduct research on possible benefits that Nepal can receive from WTO membership.

The MoU also stated that a six-member task force comprising of members of both the organisation will be formed under the coordination of the department to work concretely in the areas identified for mutual cooperation.

It is expected that this cooperation between the FNCCI and the department will address the hurdles in expansion of industries and businesses due to the lack of concrete and basic data regarding the industries and businesses operating in the country. This understanding has materialised through the initiative of the Federation's Industry Committee.

Speaking at the occasion, FNCCI President Golchha said that ordinary Nepalis can benefit from the cooperation between the government and the private sector. He expressed his confidence that the cooperation would help in achieving the vision paper of the FNCCI.

Similarly, DG Bhushal expressed his confidence that the agreement reached with the FNCCI will help in the government's drive to build a prosperous country. Bhushal said that the agreement would be an important initiative in the context of the department seeking the help of FNCCI to identify and solve the problems in expansion of the industries operating in the country.

Both FNCCI and the department have said signing of this agreement is a historic step and expressed confidence that it would help in formulating policies related to industry sector.

A version of this article appears in the print on March 02, 2021, of The Himalayan Times.