Opening IDB licence a great move for infrastructure development: CNI
Kathmandu, August 13
The Confederation of Nepalese Industries (CNI) has welcomed the government’s recent move to open licence for Infrastructure Development Bank (IDB).
Issuing a press statement today, CNI said that private sector had been lobbying for the establishment of such a bank since long and operation of IDB will play a crucial role in development of infrastructure in Nepal as the country has been facing infrastructure deficit.
Nepal Rastra Bank (NRB) last week issued ‘Licensing Policy for Infrastructure Development Bank’, calling interested parties to apply for operation of the bank with paid-up capital of Rs 20 billion.
“CNI had always believed that Nepal should inject at least 10 per cent of its gross domestic product in infrastructure. The operationalisation of IDB will ensure that country’s infrastructure sector will get new investments in future,” said CNI President Hari Bhakta Sharma.
As per NRB’s guideline, if a foreign company wishes to have share in the IDB, it can invest a minimum of 20 per cent to maximum of 85 per cent in the bank’s paid-up capital and the IDB should provide 15 per cent share to public. Similarly, the NRB policy states that if the bank is to be established with 50 per cent of the paid-up capital through foreign investment, public should get 30 per cent share.
The private sector has long called for establishment of IDB as development of mega infrastructure projects in Nepal has been hampered by lack of funds.
“It is only through huge investment in the infrastructure sector that Nepal can achieve a double digit growth and become middle-income nation by 2030,” the CNI press statement states.