Friday, June 2, 2017

Govt to form Rs. 500b Industry Fund

Kathmandu, June 1: The Ministry of Industry is all set to establish an Industrial Development Fund (IDF) in partnership with the private sector, Non-Resident Nepalese (NRN) and foreign joint-venture companies.

The fund, which will be established as per the provisions of the Company Act, 2006, is expected to mobilize about Rs. 500 billion to invest in various industrial infrastructures.

“The main objective of the IDF is to expedite the industrial process in the country through the development of infrastructure, like energy, transportation and industrial zones, capacity enhancement of industrial zones, promotion of entrepreneurship and technology transfer,” said Minister for Industry Nabindra Raj Joshi while speaking at a press meet at the Singha Durbar on Thursday.

According to him, unlike other government established companies, the IDF will be run by the private sector management and function as a commercial company. It will have only 4 per cent government equity.
The government has reduced its role to only as a facilitator.

The NRNs and Nepalese private sector have pledged Rs. 1 billion each to the fund while the government expects to raise Rs. 1 billion from joint ventures and about Rs. 2 billion from the public.
“Private sector has expressed its commitment to contribute to the fund after assessing the projects while the joint venture companies are ready to invest,” said Joshi.

The Ministry is sending the working procedures required for operating the fund to the cabinet in a couple of days, and committee and task force will also be formed soon.

As per the statement issued by the MoI, the fund will promote industrial development, entrepreneurship and create employment, create investment-friendly environment, support in sustainable economic growth and mobilize investment required for the industrial development.

Tilganga gets Rs. 100m
Meanwhile, the government has allocated Rs 100 million for the capacity enhancement of the intraocular lens manufacturing facility at the Tilganga Institute of Opthalmology (TIO).

Although the MoI had asked Rs. 150 million for the same, Finance Minister Krishna Bahadur Mahara has allotted Rs. 100 million in grant in his budget for the next fiscal year 2017/18.

With the financial support, the TIO will produce additional 125,000 lenses, which will raise the annual capacity of the plant to 625,000, said Dr. Sanduk Ruit, founder and executive director of Nepal Eye Programme (NEP).

The NEP is a not-for-profit, community based non-government organisation which was launched in 1992 to support the prevention and control of blindness in Nepal and the region. The TIO is the implementation body of the NEP.
Currently Tilganga is producing 500,000 pieces of lenses a year, and 50 per cent of it is being exported to as much as 50 countries.

However, with the government support, the TIO plans to enhance the capacity to 1.5 million lenses per year which needs additional Rs. 800 million.

“We will gradually enhance the capacity of the plant. The intraocular lens produced by the TIO is the only product from Nepal that has CE mark and ISO certification. Therefore, it has a huge export potential in many countries, including the European Union member states,” said Dr. Ruit.

A lens is exported at 16 US dollars while the same lens is available at less than Rs. 200 in Nepal.
A Memorandum of Understanding (MoU) was signed between the MoI and TIO to facilitate the largest eye hospital in the country to have support from the government to develop the manufacturing at industrial level.

As per the MoU, the Ministry would support the TIO in production of raw materials needed for the intraocular lenses, installation of modern production plant, and promote the lenses in the international markets.

Similarly, the Ministry has decided to collaborate with the National Invention Centre of Dr. Mahabir Pun.

Minister Joshi said that the MoI would also promote the use of electric vehicle produced by the Centre. 

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