NEW DELHI: Nepal’s Prime Minister Madhav Kumar Nepal today tried

to assure the Indian business community in New Delhi saying that his government is forming a high-level committee to facilitate Indian investment in Nepal.

Addressing a meeting organised jointly by Federation of Indian Chambers of Commerce Industries (FICCI), Confederation of Indian Industries (CII) and ASSOCHAM, the premier said his government will soon form a high-level investment board to facilitate investors in promising areas any delay and hassle. The PM also assured investors there would a high-level redressal committee under himself to address the grievances of investors. The PM said the government will tell all the ministries to expedite the process of investment without any delay and hassle.

Talking about Nepal-India development and cooperation PM Nepal said, “What we have seen in our countries is not the full potential of our cooperation. There are many untapped areas in my country that awaits Indian investment.”

Speaking on the occasion, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi said, “Nepal offers unique opportunities in hydro-power, agri-business, tourism and infrastructure development.” Joshi added that these sectors are a natural complement to India.

“Nepal has identified these sectors as priority sectors

and is committed to encourage and facilitate private investment in these areas,” Joshi added requesting his Indian counterparts to take advantage of the opportunity to invest in Nepal. He also told Indian businesses that the Nepali private sector is more than eager to help Indian investors in doing business in Nepal.

After the historic Trade Treaty of 1996, trade between India and Nepal has taken long strides. Bilateral trade has increased over the last decade — from Rs 31 billion in 1996-97 to Rs 160 billion in 2006-07 — an almost 400 per cent increase.

“Within the period the share of trade with India in relation to overall trade of Nepal, also increased from 25 per cent to around 65 per cent,” he said adding that due to reasons beyond the spirit of the treaty, the trade deficit is widening and has crossed Rs 107 billion.

A Joint Task Force (JTF) was set up in 2008 to suggest ways and means to enhance economic cooperation between Nepal and India and identify opportunities for Indian investments in Nepal. The JTF identified areas of mutual cooperation between the two South Asian countries. “The report is expected to be complete by end-August and will be presented to both the governments for their reference and required action,” he added.

CII past president Subodh Bhargava said the Indian business community was eager to invest in new areas of Nepal but in order to facilitate Indian investment there, the government of Nepal needs to provide industrial security and make the legal and other frameworks investor-friendly.

FICCI member G Subba Rao said that the Nepalese Prime Minister’s visit to India has opened new vistas of cooperation between both countries and the real integration of two economies can happen through increased Indian investment in Nepal.

Rao said since Nepal has huge potential of water resources, encouraging investment in that sector would

be beneficial for both countries. He also requested

PM Nepal to redress the grievances of existing Indian investors so that more and more investors would invest in Nepal. He said frequenst strikes, labour unrest, power shortage were the major deterrents for the Indian investors.

Basnyat hails Indo-Nepal trade

NEW DELHI: Narendra Kumar Basnyat, acting president of Confederation of Nepalese Industries (CNI) addressing the Indian business community today said that Indian technology, Indian money and Indian markets can be used to develop Nepali resources at comparative advantage that would be beneficial for both countries like East-West electric railway right across the country, an alternative international air port in Nijgadh — which is in the central Terai region, a proposed East-West Highway that crosses the country via the mid-hills, another East-West road in the Terai parallel to the existing East-West Highway, building a three-800 KV power transmission line from three major river basins in Nepal to the India border to provide easy power evacuation to Indian markets. Besides these infrastructure projects, there are more than 25,000 MW of hydropower waiting to be developed for the Indian markets. — HNS