Nepal | April 10, 2020

Govt gives nod to Rs 29.83bn FDI on the eve of investment summit

Sujan Dhungana

Minister for Industry Nabindra Raj Joshi gives insight into the Nepal Investment Summit 2017, its goals and government’s preparations, in Kathmandu, on Sunday, February 26, 2017. The summmit is scheduled to take palce on March 2 and 3 in Kathmandu. Photo: Balkrishna Thapa Chhetri/THT

Kathmandu, March 1

Just a day before the Nepal Investment Summit kicks off in the capital, the government approved foreign investment worth Rs 29.83 billion today.

A meeting of the Industrial Promotion Board, chaired by Minister for Industry Nabindra Raj Joshi approved the said amount of foreign investment in hydropower, cement industry and hotels. Due to delay in holding the IPB meeting, approval of a huge amount of foreign investment had been pending since long.

Approved foreign investment

Name of the company

Investment approved

Arghakhachi Cement

Rs 3 billion

Langtang Bhotekoshi Hydropower Company

Rs 17.49 billion

Sarbottam Cement

Rs 3.97 billion

Sinohydro Sagarmatha

Rs 3.41 billion

Swetganga Hydropower and Construction

Rs 320 million

Soaltee Crowne Plaza

Rs 1.64 billion

Total

Rs 29.83 billion

Source: Ministry of Industry

                 

Minister Joshi said bringing huge investment — both domestic and foreign — is the only way to boost economic growth in a country like Nepal.

He said the approval would convey a positive message to all potential foreign and domestic investors who would participate in the Nepal Investment Summit.

The IPB has approved the proposal of Soaltee Crowne Plaza to increase its paid-up capital by Rs 1.64 billion. With this approval, the paid-up capital of the hotel will reach Rs 2.91 billion. The meeting also accepted the proposal of Langtang Bhotekoshi Hydropower Company Pvt Ltd to increase its paid-up capital by Rs 17.49 billion to Rs 20.4 billion. The IPB meeting also accepted the proposal of LBHCPL to increase its electricity production capacity by 22.5 megawatts to 120 megawatts.

The board also approved the proposal of Sarbottam Cement to increase its paid-up capital by Rs 3.97 billion. Earlier, Sarbottam Cement had a paid-up capital of Rs 6 billion. The meeting also approved the company’s proposal to increase its clinker production capacity by 358,000 tonnes and production capacity of Portland Slag Cement by 288,200 tonnes.

The IPB allowed Dolma Impact Fund of Mauritius to purchase 320,000 units of shares of Swet Ganga Hydropower and Construction Pvt Ltd at a price of Rs 100 per unit. This will directly bring in foreign investment worth Rs 320 million. The proposal of Arghakhachi Cement to merge the company’s two units with paid-up capital of Rs 1.1 billion and Rs 1.9 billion was also okayed.

The IPB also approved the proposal of Sinohydro Sagarmatha Power Company to increase its paid-up capital by Rs 3.41 billion to Rs 19.56 billion.

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A version of this article appears in print on March 02, 2017 of The Himalayan Times.


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