Govt for good investment climate

Kathmandu, July 12: Minister for Industry Som Prasad Pandey Tuesday said that in order to lead the country on the path of industrial development, the legal regime should be updated so as to facilitate the domestic and foreign investors.

Speaking at a discussion porgramme on 'bill made to amend and integrate the laws related to industrial enterprises', Minister Pandey said, "Only industrial development can open the door to prosperity by creating employment opportunity and contributing to the national and local economy."

He informed that the government was carrying out necessary tasks to establish large industrial areas in all seven provinces, and priority would be given to the industries that use locally available raw materials while special treatment would be tendered to the foreign direct investment.

"The government is ready to involve the private sector in all those activities and programmes," he said.

Chairman of Industry, Commerce and Consumers Rights Relations Committee of the Legislature-Parliament, Bhishma Raj Angdembe urged the business community to come up with recommendations.

 "The committee will move ahead by incorporating the suggestions of the business community. We have already discussed the issues in the bill with various business association, organizations and individuals which has enriched the committee about the problems that the private sector is facing," he said.

Currently, the bill is in the Committee for discussion. Once the Committee gives it a go-ahead nod, the bill will be presented in the Legislature Parliament.

The private sector demanded business environment and investment security.

"Every investor wants secure investment environment. Investors go there where there is a guarantee of return on their investment," said Pashupati Murarka, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

He expressed his confidence that the new legal framework would promote investment environment and will pave way for more domestic and foreign investment.

However, he complained that the country failed to develop and amend important laws needed for industrial development.

President of the Confederation of Nepalese Industries (CNI), Hari Bhakta Sharma demanded an exit policy for the businessmen.

"There is no insolvency law in Nepal. It is difficult to establish an enterprise here while an entrepreneur has to undergo a more complex process to shut it down," he said.

Saying the provisions made for mandatory Corporate Social Responsibility programme of an enterprise were impractical, Sharma suggested that a company should not be compelled to spend more than 0.5 per cent of its total profit in CSR activities.

FNCCI vice-president Dinesh Shrestha urged the government to develop one-door system to facilitate the investors to establish industries or businesses. 

He said that the country should focus on industrial development at this stage rather than the environment protection.

Immediate past president of the Federation of Nepalese Cottage and Small Industry (FNCSI) Suresh Pradhan demanded equal treatment to the domestic investors as it was promised to the Indian investors in the Bilateral Investment Protection and Promotion Agreement (BIPPA) with India.

Yam Kumari Khatiwada, joint secretary of the Ministry of Industry, presented the major characteristics of the bill in the programme.