Govt approves FIs over Rs 2.99b

Kathmandu, August 31:

Flow of foreign investments (FIs) in industrial sector saw a marginal growth during the fiscal year 2006-07 in comparison to the previous fiscal year.

The government gave approval to 184 different projects with a total investment of over Rs 2.99 billion during 2006-07, a marginal rise of 3.46 per cent from a year ago.

According to data of the Department of Industry (DoI), the government had approved 86 different projects worth over Rs 2.89 billion in 2005-06.

Of the total approval of Rs 2.99 billion, over 97 per cent or Rs 2.91 billion is foreign investment (FI), while the remaining is domestic investment in the form of partnership or joint venture. These projects are estimated to generate 7,150 employments.

A total of 32 different countries got green signal for investment in Nepal during the period. Among the source of country of investment, China tops the list with 37 industries, followed by India at 25, while the US investors are in the third position with 23 industries.

The South Korean and Japanese investors got approval for 15 projects each and the UK got approval for 14 industries. Other 26 different countries share the remaining 107 projects.

In terms of sectoral division of the industries, service sector continues to be the most lucrative sector for the foreign investors followed by tourism and hospitality management.

Of the total approved projects, 86 are for service sector, 55 for tourism, 38 for manufacturing and processing, two for construction and one each for agriculture and mines.

Of the total approved 86 industries in 2005-06, 31 were service sector industries followed by tourism and hospitality management at 26 projects.

26 industries were into manufacturing, while electricity water and gas sector had attracted

foreign investment for two new industries and foreign investment came for one company into transport and communication sector.

As of the end of fiscal year 2006-07, India tops the list of total foreign investment projects in Nepal with 356 projects approved so far.

China follows the race with 158 projects and Japan is in the third position with 125 projects and the US has 121 projects in Nepal.