Kathmandu, Aug. 29
With the aim to fill the gap of venture capital in
agriculture enterprises in Nepal, Nexgen Management Solutions Pvt. Ltd. is
planning to launch an Agro Venture Capital. A feasibility study of the proposed
company has already been completed.
"The establishment of Agro
Venture Capital is being prepared with the aim of developing and expanding
the industrial business based on agricultural raw materials and finished goods
produced in Nepal," said the company in a statement on Thursday.
Nexgen Management has initiated preparations for setting up
agro venture capital after multiple rounds of discussions and feasibility
studies with former bankers, former heads of regulatory bodies, agricultural
experts and agribusinesses. They include former Governor of the Nepal Rastra
Bank, Dr. Chiranjibi Nepal, former secretary of the Ministry of Agriculture and
Livestock Development, Yogendra Kumar Karki, former chairman of Insurance
Board, Devendra Pratap Shah, and former bankers Ramesh Kumar Bhattarai and
Janak Sharma.
The proposed company will be called Nepal Agro Venture
Capital Ltd. will have the paid-up capital of Rs. 500 million which will be
increased to Rs. 1 billion within a year from the start of its operation.
About 85 per cent of the shares of the company will be
allotted to the founders and 15 per cent will be sold to the general public.
Likewise, 45 per cent of the founder shares will be for bank insurance and the
institutions listed at the stock exchange while 40 per cent will be allocated
for individuals and private companies.
The proposed venture capital company will have a
seven-member board of directors. There will be five members from the founders,
one member from the general public and one independent director.
Chairman of Nexgen Management, Ramesh Kumar Bhattarai said
that although foreign and domestic venture capital are operating in Nepal, there
is no separate venture capital to assist in the establishment, operation and
promotion of agricultural raw materials and ready-made products which creates
need for a company of this nature.
The government has given an attractive and loud slogan to
develop and expand the agricultural sector, but nothing has been done. That's
why we want to do it through venture capital in order to make efforts from the
public and private sector as well, he said.
Bhattarai believes that by taking the approval from the Securities
Board and raising sector-wise funds and investing in agriculture as a priority,
the business of other sectors can also be invested and expanded in the same
way.
Nepal is an agricultural country, more than 65 per cent of
the people depend on agriculture, the contribution of agriculture to the
national economy is more than 24 per cent.
"Development of the country is not possible without the development of the agricultural sector. To increase the standard of living and purchasing power of the people, there must be development of agricultural production and agriculture-based industries. But the investment in agriculture has not been as expected," reads the statement.
Published in The Rising Nepal daily on 30 August 2024.
No comments:
Post a Comment