Kathmandu, May 26
Minister for Foreign Affairs Dr. Narayan
Khadka said that the construction of new railways and hydropower projects would
facilitate the business community and investors in Nepal and India in the short
and long run.
"Cross-border
connectivity brings economies closer, promotes bilateral trade and facilitates
people to people contacts which have multiplier effects in the economy,"
he said while speaking at the 26th and 27th Annual
General Meeting of Nepal India Chamber of Commerce and Industry (NICCI) in the
Capital on Thursday.
To enhance trade
and economic activities, we have prioritised connectivity infrastructure –
including roads, railways, waterways and transmission lines, stated Minister
Dr. Khadka.
According to him,
since Nepal holds an immense potential in hydropower generation and India has a
growing demand for energy, bilateral cooperation in power sector will therefore
deliver mutual gains.
"Nepal's
hydropower will contribute to energy security as well as in mitigating climate
change and reducing carbon footprints," said FM Dr. Khadka.
He maintained
that a long-term approach in joint development of hydropower and seamless power
trade will unleash further economic potentials between the two countries.
Suresh Prabhu, former Minister for Power,
Infrastructure, Commerce and Industry of India, said that railway connectivity
could be expanded up to Kathmandu from India. It will facilitate the movement
of people and goods as well, he maintained.
He also said that Nepal can be a good
destination of medical tourism so it needs to develop robust health
infrastructure and required facilities, it will also help in the growth of
local economy.
Prabhu also suggested harnessing the
potential of solar energy alongside the hydroelectricity to strengthen the
country's energy mix. "Cheap source of energy is needed to support the
energy-intensive industries and it will attract investors from abroad as
well," he said.
He expressed wonders that with huge
potential in energy, business and natural resources, Nepal is such a small
economy, and expressed hopes that it could be catapulted to a developed and
prosperous nation within a short period of time.
According to him, India is a twin brother
of Nepal, it’s not the 'big brother'.
Former Ambassador of India to Nepal, Ranjit
Rae, said that Pancheshwor Multipurpose Project can change the dynamics of
relations between the two countries and help in development. He emphasised the
early implementation of the project.
Kulman Ghishing, Managing Director of the
Nepal Electricity Authority, said that total wheeling capacity of Nepal-India
cross-border transmission line is 1500 Megawatt. The power exchange was started
in 1971 and with the cooperation with the companies like SJVN which is
developing Arun III hydroelectricity, and construction of more powerful
transmission lines, it will grow in the days to come.
President of NICCI, Shreejana Rana
expressed concerns over the gradual drop in the Foreign Direct Investment (FDI)
from India. "Since beginning of the history of FDI in Nepal, India used to
top the list of FDI countries, however, in the last five or six years, we are
witnessing a gradual fall in investment from India," she said.
According to her, although five yearly
statistics show gradual increase in FDI commitments, FDI remains fairly dismal,
both in terms of commitments and actual implementation. The FDI flow is far below the need of the country for
overall growth of our economy, she stated.
Rana appreciated the amendment made to the
Rail Service Agreement which is expected to bring about a huge change in
Nepal's international trade.
As per the amendment, rails and wagons
under the ownership of Nepal Railway Company can operate up to Kolkata-Haldia
from Birgunj and Biratnagar.
The AGM has reelected Rana to the post of
NICCI.
President of Federation of Nepalese
Chambers of Commerce and Industry, Shekhar Golchha, said that his organisation
was going to organise a business summit especially targeting the business and
investors from India. It will be realised soon, in collaboration of
Confederation of Indian Industries, he informed.
President of Nepal Chamber of Commerce,
Rajendra Malla, said there was a need for developing Ayurveda sector in Nepal
and enhance the export of herbs and herbal medicines to India. An international-level
quarantine lab is needed at Nepal-India border.
Likewise, President of Confederation of
Nepalese Industries, Vishnu Agrawal, FDI is still an untapped area of
cooperation in Nepal-India relations. However, the FDI flow is not encouraging
in recent years despite multiple success stories.
Published in The Rising Nepal daily on 26 May 2022.
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