• Remittance recipient households of 16 identified districts to be eligible for the mega programme that is scheduled to run for next seven years

Kathmandu, August 30

At a time when the government has been criticised for not adopting any effective measure to utilise remittance in the productive sector, the Ministry of Industry has launched a whopping $68-million enterprise development programme for the remittance recipient households in eastern Nepal.

The MoI, with support of private sector and the development partners, has launched an entrepreneurship development programme in 16 districts of eastern Nepal.

The Samriddhi Project launched by the MoI has targeted the remittance recipient households for entrepreneurship development by providing them skills as well as matching funds for the ventures proposed by such households and deemed viable.

This project has mainly targeted remittance recipient households and is scheduled to run for seven years from the current fiscal.

“We expect the remittance money to be utilised in productive sectors as the remittance recipient households will engage in enterprise development through technical and financial support from this project,” said Yam Kumari Khatiwada, spokesperson for MoI.

Due to lack of profitable avenues, remittance has largely been utilised in the consumption sector at present.

The country’s savings is expected to hover at around 10.2 per cent of the country’s gross domestic product in fiscal 2015-16. According to Nepal Rastra Bank, the country received remittance worth Rs 665.06 billion in the last fiscal year.

The MoI is the executing agency of the project. Agro Enterprise Centre under the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Helvetas Nepal will be working as the implementing agencies.

According to Pradeep Maharjan, executive director of Agro Enterprise Centre, a beneficiary household can obtain up to 50 per cent of the total cost to initiate an enterprise from the project. The project will also provide required mentorship to make their business successful.

A total of 16 districts — Bhojpur, Dhankuta, Khotang, Morang, Saptari, Siraha, Sunsari, Terhathum, Udayapur, Bara, Dhanusha, Mahottari, Okhaldhunga, Rautahat, Sarlahi and Sindhuli — have been selected as the beneficiary districts.

The total cost of the project will hover around $68 million. The government has mobilised $38 million from International Fund for Agriculture Development (IFAD).

A large chunk of IFAD’s aid has been approved as a component of the loan. Of the total $38 million, 56 per cent is loan and remaining amount is grant.

The private sector would contribute $13.7 million for the project. The government’s contribution to the project would stand at $16.3 million.