KATHMANDU, OCOTBER 29
The Department of Industry approved 94 foreign direct investment (FDI) projects worth Rs 5.11 billion between mid-September and mid-October, according to its monthly report.
Of the approved projects, 88 worth Rs 4.84 billion were cleared through the automatic route, while six projects worth Rs 266 million received approval through the regular route. The projects are expected to create 1,167 jobs.
FDI commitments approved in the first three months of the current fiscal year 2026/27 reached Rs 16.23 billion across 422 projects. Of these, 410 projects worth Rs 14.59 billion were approved through the automatic route and 12 worth Rs 1.65 billion through the regular route. The projects are expected to generate 5,129 jobs.
The department also approved 10 share purchase or subscription agreements worth Rs 1.69 billion and 20 technology transfer agreements during the month. Since the beginning of the fiscal year, it has approved 22 share agreements worth Rs 2.51 billion and 32 technology transfer agreements.
Small enterprises accounted for all 94 projects approved during the month, with no medium or large-scale projects registered. Of the 422 projects approved in the first three months, 417 were small-scale, two medium-scale and three large-scale.
By sector, information and communication technology (ICT) accounted for the largest number of projects, with 252, or 60 per cent of the total. However, these projects attracted commitments of only Rs 928.4 million.
Tourism ranked second by project count, with 108 projects, accounting for 26 per cent of the total. The sector attracted Rs 6.08 billion, or 37 per cent of total approved investment.
The energy sector attracted Rs 4 billion, or 25 per cent of total commitments, through just two projects. Services accounted for 33 projects worth Rs 3.58 billion, while manufacturing recorded 25 projects worth Rs 1.61 billion. Agriculture and forestry attracted two projects worth Rs 40 million. No projects were registered in mining or infrastructure.
The report shows that FDI approvals in the first month of the previous fiscal year were substantially higher than those recorded in the corresponding month this year.
The gap narrowed in the second month, while approvals in the third month exceeded those recorded in the same period last year.
During the month, the department recommended business visas for 59 investors, 37 representatives and 66 dependents.
It also made nine recommendations for non-tourist visas related to advertising and one for a technology transfer agreement. In the first three months of the fiscal year, it recommended business visas for 144 investors, 99 representatives and 152 dependents.
Royalty repatriation during the month amounted to Rs 294.59 million, US$398,377.89 and INR 21.75 million. Cumulative royalty repatriation for the first three months stood at Rs 916.6 million, US$1.19 million and INR 25.72 million.
Dividend repatriation totalled Rs 196.42 million during the month. Service fee repatriation amounted to INR 7.43 million
