KATHMANDU, OCTOBER 19
A delegation from the Nepal-India Chamber of Commerce and Industry (NICCI) met with Minister for Industry, Commerce and Supplies, Ramesh Rizal, at the ministry today to deliberate on the pressing issues related to contract manufacturing and the current restrictive amendments under the Foreign Investment and Technology Transfer Act (FITTA) 2019 and Industrial Enterprise Act 2020.
The delegation, led by NICCI President Shreejana Rana, stressed the critical need to reevaluate the existing provisions in order to support the growth of the local industrial sector and stimulate foreign investment in the region.
The meeting highlighted the importance of contract manufacturing as a key driver for technological advancement and job creation in Nepal. The delegation emphasised the significance of the previously granted permissions for contract manufacturing, including main products, which had not only attracted notable multinational companies (MNCs) to the region but also contributed to the advancement of the local workforce and technological capabilities, as per a media release.
NICCI President Rana voiced the concerns of the business community, and stated that the current provisions in the Industrial Enterprise Act 2020 and FITTA 2019 have posed significant challenges to the continuation of contract manufacturing practices, adversely impacting the industrial landscape and limiting growth opportunities for both local businesses and potential foreign investors.
In response to the delegation its concerns, Minister Rizal expressed a positive outlook, affirming the ministry's commitment to collaborating with NICCI and the private sector in Nepal, including apex chambers, to find mutually beneficial solutions. He emphasised the need for a conducive environment that promotes investment and fosters economic development in the increasingly competitive global market.
The NICCI delegation included NICC Vice-President Sunil KC; Executive Member and Managing Director of Surya Nepal Pvt Ltd Ravi Kumar Rayavaram; Special Invitee to the Executive Committee and Co-Chair of Indian Business Forum at NICCI and Management Consultant at Berger Jenson and Nicholson Nepal Pvt Ltd, Saibal Ghosh; Director General Keshab Man Singh; and Deputy Director Marshal Rathour. The delegation also comprised prominent industry representatives, including Samir Shrestha, CFO and company secretary; and GB Khanal, expert at Asian Paints Nepal P Ltd; Abhaya Gorkhalee, head of marketing at Dabur Nepal Pvt Ltd; and Govind Shahi, company senior manager at Unilever Nepal Ltd.
Joining the discussion from the ministry was Joint Secretary Lila Prasad Sharma, who actively participated in the deliberations, expressing the ministry's willingness to work collaboratively towards an effective resolution, the release adds.
A version of this article appears in the print on October 20, 2023, of The Himalayan Times
