NICCI praises govt for FDI automation

Kathmandu, Feb. 20

The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the government’s decision to operationalise foreign investment approval services through an automated route, describing it as a positive and timely reform aimed at improving Nepal’s investment climate.

The newly introduced automated mechanism – published in the national Gazette on Monday, February 16 – is expected to reduce procedural delays, enhance transparency, and simplify administrative processes for foreign investors seeking approval to invest in Nepal, NICCI said in a statement on Friday.

By digitising and streamlining approvals, the government has taken an important step toward aligning Nepal’s regulatory environment with global best practices and investor expectations.

“Though the current government had the only mandate of holding an election, it has been trying to create a conducive environment for business,” NICCI President Sunil KC said.

NICCI had organised a closed-door interaction with Industry Minister Anil Kumar Sinha a month ago, submitted recommendations and requested the government to reform the age-old laws to facilitate foreign direct investment.

Praising the government’s move, co-convenor of Indian Business Forum (IBF) under NICCI, Saibal Gosh noted that while automation is a significant reform, it should be seen as part of a broader, more comprehensive investment strategy.

“This is an excellent step, though this alone may not be enough to attract FDI,” he said, adding that the new government needs to come up with a benefit scheme for new FDI investors, which is aligned with investment schemes offered by different Indian states and the central government of India.

NICCI also emphasised that regional competition for investment has intensified, with neighbouring countries and Indian states offering targeted fiscal incentives, sector-specific benefits, and facilitation packages to attract global capital. In this context, Nepal must complement procedural reforms with competitive incentive frameworks, policy predictability, and effective aftercare services for investors, read the statement.

The bi-national chamber further stressed that closer alignment of Nepal’s FDI incentive structures with those prevailing in India would be particularly important, given the strong economic interlinkages, geographic proximity, and growing cross-border investment interest between the two countries.

 Published in The Rising Nepal daily on 21 February 2026.     

IN-SPAN calls application from Nepali startups

Kathmandu, Nov. 2

India-Nepal Startup Partnership Network (IN-SPAN) has called for applications from Nepali startups and entrepreneurs to participate in cross-border startup ecosystem.

"IN-SPAN, a new startup platform, invites applications from Nepali entrepreneurs with transformative ideas to participate in an innovative cross-border initiative connecting the vibrant startup ecosystems of Nepal and India," the Embassy of India in Kathmandu said in a statement on Saturday.

IN-SPAN features an 8-week, fully-funded training and innovation programme at IIT Madras, delivered in collaboration with IIT Madras Pravartak - a leading incubator which has incubated 46 startups with 14 successfully commercialising their technologies.

According to the Embassy, participants will benefit from hands-on learning, expert mentorship, and internship opportunities designed to take their ideas from concept to creation.

The upcoming event will be built on the success of previous India-Nepal startup initiatives, including the 1st India-Nepal Startup Connect in 2023 and the 2nd India-Nepal Startup Connect: Curtain Raiser for Startup Mahakumbh in February 2025 organised by the Embassy of India, Kathmandu.

"IN-SPAN provides a unique opportunity for Nepali startups to gain mentorship, training, and industry exposure at one of India’s top innovation hubs," read the statement.

The Embassy also said that selection for the programme will be competitive based on the applications and interviews.

  Published in The Rising Nepal daily on 3 November 2025.     

Poor Leadership Cripples Public Enterprises

 Of the 45 public sector enterprises (PSEs) operating in Nepal, 17 are running at a loss. In Fiscal Year 2023/24, the public enterprises in the industrial, commercial, public utility, service and financial sectors earned a net profit of Rs. 42.63 billion. But the top five profit makers – Nepal Oil Corporation, Nepal Electricity Authority, Nepal Telecom, Citizen Investment Trust, and Deposit and Credit Guarantee Fund – make almost 84 per cent of this profit, while the rest made a combined profit of Rs. 6.94 billion.

Meanwhile, other offices performing general administration tasks have long been failing to provide timely service and meet public expectations, which has contributed to increasing public frustration and decreasing the credibility of the state. Administrative offices and state-owned enterprises seem sluggish. While multiple reform plans and strategies have been announced, their implementation remains rather pathetic.

Management failure

The miserable state of PSEs results from management failure, which is due to incompetent, inefficient, and visionless leadership. Many of the public sector companies are on the verge of going belly up because of direct political interference in the appointment of the managers and the vested interests of regulating bodies in micromanaging the business or industrial entity. The terms of reference of the job or qualification criteria are bent to present the lucrative posts to the henchmen of certain leaders. The managers, who snatch the positions from deserving candidates through their political connections, have less to do with the prosperity of the institution. 

They create an island for themselves and always remain in a coterie of 'yes men'. They live in an ivory tower and look down on the subordinates and 'foot soldiers' who struggle hard to take the enterprise on the path to success. This type of manager tends to show their allegiance to their political masters, remain indifferent to the career growth and capacity building of the staff of the organisation, and ignore the customer and market interests and business growth. However, they might exhibit a sort of loyalty to the trade unions affiliated with their respective political parties at the cost of the overall organisational benefits. Political patronage has become the largest bane of the PSEs in Nepal.

These managers can never be true leaders; instead, many of them end up becoming power brokers at their level or fundraisers for their political masters and parties. They are risk-averse and are myopic in terms of organisational or business transformation. Their lack of knowledge about the business and products of the enterprise, innovations in the sector, and the status of competition in the market sustains the fear of taking any risks. This is the era of global competition, and any company or product has to either compete at the international level or face the influx of international products in the domestic market, or experience both.

These challenges demand that the managers of the PSEs possess knowledge and expertise in marketing, human resource management—with the capability to find and develop talent within and outside the organisation—collaboration and cooperation with different stakeholders of the business, and the ability to work on both short- and long-term strategies. But the managers in the PSEs are initially overconfident about solving the challenges in the enterprise, simply because they have connections with high political offices. In reality, it doesn't happen. Decisions should come through a due process defined by laws, which bar the ambitious managers, many of whom have been parachuted into the organisation and feel alien throughout their tenure, from making decisions haphazardly. 

Even their political masters suggest that they must not go beyond the legal framework. Those who are catapulted to the post for the first time find themselves ping-ponged between Singha Durbar and their workstation. Some managers just have the posts but lack the decision-making authority. They can't solve the problems of their staff and customers. If a leader doesn't have the right and power (resources included) to solve the challenges faced by the subordinates, he or she bears no authority to direct them to put in additional efforts for exclusive results. Meanwhile, many of the PSEs are headed by acting chiefs. 

Assigning the 'acting' post instead of full-fledged responsibility for the job might have repercussions on the confidence and decision-making ability of the manager. Several such enterprises have had 'acting' chiefs for the last many years who are not fully satisfied with their job title but carry out the day-to-day responsibilities while not taking initiatives for long-term business growth and solutions. Many of the PSEs, therefore, lack O&M policy and strategy, hindering healthy organisational growth.

Pain points 

To make the PSEs more competitive, sustainable, and economically rewarding, managers should be ready to hear from the foot soldiers – the lower rung of employees – and address the pain points at various levels. The power of communication should not be ignored, as it is not only useful in mapping the environment in an organisation and building rapport with the entire team, but also in finding the pain points, managing resources, and solving problems. Effective communication within and outside the institution can also help find new insights, navigate through complexities, and address conflicts.

Having said that, the ultimate basic requisite to have good leaders in PSEs is to bring in the managers who match the requirements of the post and can fulfil the demands of the market. One should always be reminded that serving the consumers is the ultimate goal of the company they are leading. Failing in this objective means failing on every front.

Published in The Rising Nepal daily on 18 August 2025.  

NYEF opens registration for Start-up Awards

Kathmandu, Oct. 24

Nepalese Youth Entrepreneurs Forum (NYEF), the youth wing of the Federation of Nepalese Chambers of Commerce and Industry, Kathmandu Chapter has announced the launch of the fourth edition of the NYEF Startup Awards.

"This competition aims to recognise and empower Nepal's innovative entrepreneurs," the NYEF said in a statement on Thursday.

Titled the 'Startup Awards 4.0', the competition provides a platform for entrepreneurs to present their business ideas, network with industry leaders and receive guidance to elevate their businesses to new heights.

Previous winners of the competition such as Doctors on Call, Karobar App, Galli Maps, Pet Mama, and Delish Dairy, have achieved remarkable success through this initiative.

According to the NYEF, the participating startups will get various benefits including mentorship, networking, business development support, pitching opportunities and cash prizes.

The participating start-ups will have intensive guidance from experienced entrepreneurs and industry experts while they also have opportunities to connect with other entrepreneurs, investors and specialists across Nepal.

Likewise, essential assistance will be provided to empower and elevate startups professionally, and there will be a chance to present business ideas to national and international judges. Best start-ups will compete for cash prizes of Rs. 400,000, Rs. 200,000 and Rs. 100,000.

"The competition will be based on a structured selection process, starting with the selection of 20 promising startups. On the final day, seven finalists will present their business ideas to the judges," read the statement.

Startups that meet the eligibility criteria—operating for less than five years and registered with the Nepal government—can apply for the competition till November 15. 

 Published in The Rising Nepal daily on 25 October 2024. 

FNCCI-funded company to support startup enterprise

 Kathmandu, Aug. 21

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has said that startups and small entrepreneurs can seek investments from the investment company established by the FNCCI.

The Investment Company, with a capital of Rs. 10 billion, was established on the initiative of the FNCCI. However, it will be operated independently and any investor can invest in the company, Dhakal said while speaking at the Startup Nation 2030 conference in the Capital on Wednesday.

He added that to boost the economy, along with foreign direct investment, the country can also tap into the funds of small investors spread across the country who want to invest in an industry or business.

"However, since the funds are small when taken individually, we need to pool all their money to form a large fund," he stated.

According to him, the large fund managed by the new company can be used to invest in bigger development projects that the country requires. The fund can also be used to invest in state-owned industries that have remained shut for years.

"Not only will this help in industrialisation but also in generating employment within the country," Dhakal said.

The FNCCI plans to mobilise its offices in the provinces to drive this initiative forward, and also collaborate with the provincial government to establish the centres there.

The business body has already launched an initiative to establish an incubation centre in Sudurpashchim in collaboration with the provincial government there and the Kailali Chamber of Commerce and Industry. 

 Published in The Rising Nepal daily on 22 August 2024.        

Startup development is government's obligation: PM Oli

Nation aims to create 10,000 startups by 2030

 

Kathmandu, Aug. 21

Prime Minister KP Sharma Oli has urged the stakeholders from the government, private sector and development partners to facilitate the development of startup enterprises to ensure their  contribution to the national aspiration of becoming the middle-income country by 2030.

"We must move ahead with better policies, programmes and strategies to facilitate the development of this sector. As the country is transforming itself to the developing and middle-income nation by 2030, we need to promote innovations that build the foundations for industrial development," he said while addressing the Startup Nation 2030 conference in the Capital on Wednesday.

Stating that startup development is the liability and obligation of the government, PM Oli said that they are the means to achieve the national goal of 'Prosperous Nepal, happy Nepali'. "With innovative and creative thinking, youth and women can find employment and income opportunities within the country, without going abroad for work," he said.

He urged the banks and financial institutions to provide loans to such entrepreneurs based on the viability of their projects rather than asking for collateral.

“We must boost entrepreneurship based on technology, skills, and capital to ensure visible results in production across the country. Any startup supported by the government should not fail; it should be pursued as a national campaign. To achieve prosperity, the government will continue to provide unwavering support to the private sector,” said PM Oli.

"Through startup development we can promote the growth of manufacturing and service sector. It is important to establish and expand the number of industries to enhance production from small capitals," he said.  

Commenting on the national goal to create 10,000 startups by 2030, he urged the Ministry of Industry, Commerce and Supplies (MoICS) and the National Planning Commission (NPC) to perform better.

Speaking on the occasion, Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, said that there is a need to promote all creative and innovative youth to take up startup enterprise.

According to him, the government has an understanding of the challenges faced by the entrepreneurs and they would be solved one by one according to their priority.

"The economy is on a gradual course of recovery. Indicators have been improving. Revenue collection is up by 20 per cent in the first month of this Fiscal Year 2024/25. Capital expenditure has also seen an improvement while real estate and share market are growing," said DPM Paudel.

He maintained that the government is putting in efforts and cooperating with the private sector to boost the latter's confidence in business and investment. "However, we want a healthy growth in the share market and will not allow any activities like insider trading and cornering," he said.

Vice-chairman of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari said that Nepal will make significant progress and achievement by the end of 2025.

The government has recently implemented the Startup Enterprise Operation Procedure, 2080. Likewise, it has already implemented the startup loan guidelines and mobilised the funds to the startup entrepreneurs. 

Executive Director of the IEDI, Umesh Gupta, said that the national startup support project aimed at facilitating 10,000 startups to create 100,000 jobs in the next six years.

The two-day conference is the third edition in the national campaign to promote and facilitate startups. Chaired by the MoICS and led by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the conference aims to make Nepal one of the most startup-friendly nations in South Asia by 2030.

Supported by ICIMOD, Industrial Enterprise Development Institute (IEDI), the University Grants Commission (UGC), and PUM Netherlands, the conference will bring together entrepreneurs, mentors, experts, educational institutes, investors, government bodies, and other stakeholders, said the organisers.

The Startup Nation 2030 initiative aspires to establish Nepal as a startup-friendly nation by 2030. This conference will centre on the essential 4P Framework – ‘Policies, Procedures, Practices and People’ – required to realise this vision, according to the organisers.

 Published in The Rising Nepal daily on 22 August 2024.        

Grill business demand a separate village for business

 Kathmandu, Feb. 24

Stakeholders have emphasised that the government should develop a dedicated grill village for grill and steel entrepreneurs to manage the businesses of this sector and to maintain urban beauty.

A delegation of the Federation of Grill and Steel Associations of Nepal (FGSAN) met Umesh Prasad Singh, President of the Federation of Nepalese Cottage and Small Industries (FNCSI) to push forward the agenda with the government.

On the occasion, Singh said that it is necessary to promote grill and steel industries in order to enhance the productivity and capacity of the cottage and small businesses, and the FNCSI will cooperate with the grill and steel entrepreneurs for it.  

The President of the FGSAN, Thulo Babu Shrestha, urged the relevant agencies to take necessary steps to register and renew industries in a simple way as the process to register and renew industry is still complex.

In order to solve the financial problems faced by the businesses due to COVID-19 and economic recession, he also requested the banks to reduce the high interest rates and offer loans at subsidised rates without any collateral.

Shrestha also urged the government to provide discounts on the imports of large and small machine and tools used in grill and steel industries and simplify the process to bring them in Nepal from abroad.

According to him, there are about 11,000 grill and steel businesses in Nepal, and they have employed 160,000 skilled and semi-skilled workers. 

 Published in The Rising Nepal daily on 25 February 2024.        

FNCCI, govt sign MoU to promote cottage, small industries

Kathmandu, Jan. 3

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Center for the Promotion of Cottage and Small Industries of the Government of Nepal signed a Memorandum of Understanding (MoU) to forge partnership and cooperation to promote cottage and small industries in Nepal.

The MoU was signed by Gokarna Raj Awasthi, Director General of the FNCCI, Deepak Ghimire, Executive Director of the Centre.

According to the agreement, partnership and cooperation programmes will be conducted in the field of promotion of cottage and small industries in cooperation of both organisations.

The two organisations will actively cooperate with each other to make the government announced programmes in this sector successful.

The federation will facilitate the implementation of workplace-based employment training programmes while both the organisations will cooperate to transfer of skills and technology necessary to promote cottage and small industries.

Speaking at the MoU signing programme, Vice-president of the FNCCI, Sur Krishna Vaidya, expressed the commitment that the business body, which has a large network of industrialists and businessmen, will work in cooperation with the government in the development of cottage and small industries in the country and that they will move forward together for the development and promotion of this sector in the future.

Similarly, Ghimire expressed his belief that the programmes of the center will be successful when working together with the FNCCI. 

Published in The Rising Nepal daily on 4 January 2024.  

Start Fest on Dec. 23

Kathmandu, Dec. 7

The Confederation of Nepalese Industries Young Entrepreneurs Forum (CNIYEF), the youth wing of the CNI, has announced that it would organise a Startup Fest aiming to foster innovation, investment and policy discussions to boost Nepal's startup ecosystem.

The fest is slated for December 23 this year, and will be organised in collaboration with the Government of Nepal, Ministry of Industry, Commerce and Supplies, and the National Planning Commission.

"The CNIYEF Startup Fest 2023 is driven by a mission to promote startups, provide a platform for new ideas to secure investment, and support the 'Make in Nepal Swadeshi' campaign through engaging policy debates," said the organiser of the event.

Recognising the primary challenge faced by startups in acquiring investment, the fest endeavours to encourage these ventures by facilitating discussions, showcasing successful practices, and providing opportunities for startups to present their projects to potential investors are other aims of the Fest.

Over 250 startups have submitted proposals seeking investment, and a rigorous selection process led by CNIYEF and investors will result in 10 to 12 standout startups earning the opportunity to present at the fest.

Investor companies, including Tele Venture, NIMB Capital, Reliable Venture Capital, Lotus Holding, Alpha Plus Venture, Himalayan Capital, Team Venture, Global Equity Fund, Adhyanta Fund Management, and Neoteric Nepal, have expressed their commitment to investing in the selected startups. As on date, this is an investment pool of more than Rs. 1 billion.

The Startup Fest will feature panel discussions on various startup-related topics by domestic and foreign experts, live pitching sessions by startups, and engaging activities such as enlightening panel discussions, Robotic Football, Robowar, and a Live Rock Concert. The event will also host exhibitions by indigenous companies and startups championing the Make in Nepal Swadeshi Abhiyan, showcasing their goods and services.

Published in The Rising Nepal daily on 8 December 2023. 

NLSIP aims creating sustainable agri-enterprises, value chains

Biratnagar, Sept. 5

Nepal Livestock Sector Innovation Project (NLSIP) implemented by the Ministry of Agriculture and Livestock Development (MoALD) is all set to mobilise Rs. 1.42 billion to various cooperatives and private firms in the agriculture sector in Koshi Province.

The project has signed 146 agreements that require Rs. 1.42 billion – Rs 223.4 million in equity, Rs. 496.2 million bank loan and Rs. 709.7 million matching grant to be provided by the NLSIP.

So far, the project has distributed about Rs. 240 million to various 42 companies, said Sudhir Kumar Singh, Project Coordination Chief of the NLSIP's Decentralised Level Support Unit in Biratnagar, the provincial Capital of Koshi.

According to him, the total budget of the project has been divided into two areas: 50 groups/cooperatives and 96 private firms with the share of Rs. 634 million and Rs. 795.3 million, respectively.  

The budget has to be utilised before June 30 next year. It is being implemented with the World Bank support of US$ 80 million (Rs. 10.5 billion).

Only the firms willing to share 50 per cent of the total cost of the business initiatives are eligible to enjoy the service. The eligible enterprises are selected through competition and the selected ones should be ready to invest 20 per cent project cost as equity and show bank assurance of mobilising 30 per cent of the project cost in loan.

The project that is being implemented in 289 local levels of 28 districts across the country, is active in Panchthar, Ilam, Jhapa, Morang, Sunsari, Dhankuta and Udaypur districts of Koshi Province.

But due to the limited budget, grant could not be provided to all the applicants, only the best ones are selected for the grant facility.

 

Increasing productivity, resilience

It aims to increase productivity, enhance value addition and improve climate resilience of smallholder farmers and agro-enterprises in the value-chains of meat, milk and chyangra (mountain goat) husbandry with the application of technology transfer and innovation.

Singh informed that the project support till date has also helped farmers cultivate fodder in 988 hectares of land. More than 57,000 kg of forage and fodder were produced in the past five years since the implementation of the project in 2018/19.

To ensure the sustainability of fodder production, nurseries are established in Ramdhuni Municipality of Sunsari district, Udayapurgadhi Rural Municipality of Udayapur, Pathari Municipality and Letang Municipality of Morang, Pakhribas Municipality of Dhankuta.

Likewise, 5675 marginalised farmers of 77 local bodies are organised in various groups and they  are being educated on various innovation in the sector and motivated to adopt them.

Meanwhile, about 454 sheds of small farmers were improved with the support of Rs. 24,000 per shed with the total budget of Rs. 10.6 million. It has resulted in healthy livestock development.  The project has also supported in goad breeding, establishmetn of fodder processing and grading unit, veterinary equipment and animal service centre.

"Our focus is supporting smallhoders and creating entrepreneurs," said Singh.

 

Hospitals with modern facilities

Livestock service centres or rural vet hospitals are established in five locations in Ilam, Jhapa, Morang and Udayapur, and livestock markets are established in Damak of Jhapa and Rangeli of Morang. The modern livestock service centres have modern facilities including ultrasound and laboratory.

Speaking at a discussion programme in Biratnagar last week, World Bank's Country Director for the Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos, said that the multilateral donor was ready to support the government's initiative to modernise agriculture. According to him, creating sustainable system will be the WB's priority.

The project that began in 2018 has three components - strengthening government's system, policy and strategies, increasing the productivity of cattle with the application of high value equipment, development of service centres and technical support, and development of value chain and market.

 

Model programme

NLSIP has become a model for the sectorial development, said Umesh Dahal, Project Director of NLSIP at the MoALD.

While there is a mandatory insurance provision of livestock to obtain the grant and technical support, farmers and entrepreneurs are inspired to apply climate smart technologies.

Incorporation of the banks and financial institutions has increased the business viability as well as sustainability. When the entrepreneurs inject their equity and obtain loan from the BFIs, they are more serious about running their enterprise and there are high chances of success.

"We have learned a lot through the process that we went through while applying for and obtaining the grant money," said Sanjaya Chapagain of Banjara Agro Pvt. Ltd in Biratnagar. Banjara is set to create example of sustainable agriculture farm here. 

 Published in The Rising Nepal daily on 6 September 2023. 

Start-up enterprises at receiving end for lack of clear definition

Kathmandu, July 21

Start-up enterprises in Nepal have long been deprived of the funding by the government as well as banks and financial institutions (BFIs), and many other facilities including tax discounts and waivers in absence of clear definition of 'start-up' business.

This lack of definition has emerged as the biggest challenge facing such enterprises as it has been creating obstructions in expanding government facilities and technology transfer as well. In the past many years, the government announced various programmes to support and develop start-up business and ecosystem in the country but none could take off.

The government had announced some facilitating policies for the small and medium industries (SMEs) while the BFIs also launched various initiatives to support such businesses but start-ups had to fulfill the criteria set for the traditionally run businesses.

"Start-up means a new idea, new method and new technology. It is an innovation which demands a lot of time, resource and efforts while many of them might not succeed to come into operation commercially," said Narottam Aryal, President of Kings College which has kept entrepreneurship at the core of its business and management studies.

While neighbouring countries have moved ahead with pragmatic policies to promote the development and growth of start-up businesses, Nepal is lagging in every aspect of it. For example, India had launched 'Start-Up India' campaign eight years ago in January 2016 to build eco-system for promoting and nurturing innovation and start-up business with an aim to give impetus to the economic growth and create jobs. Now, the country is competing with the developed countries as well as China.

Likewise, China has more than 75,000 startups in operation. "A clear definition and good policy is needed to facilitate the promotion of startups in Nepal. A policy with a clear strategy of development could be a milestone in the development of start-up," said Ranjit Acharya, former coordinator of the Start-Up Forum at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

According to him, although the government announced programmes like concessional loan and support in technology transfer are good, start-ups are not able to obtain them due to lack of their identity.

Lack of infrastructure

There are other challenges like lack of laboratory, technological infrastructure and workshops to work upon ideas and refine them.

According to Aryal, Kathmandu-centric activities in terms of start-up development and promotion has failed to motivate youths in the other parts of the country to design and develop programmes that fit to their areas or need of the business.

Of late, the country has been witnessing a massive brain drain as the youth have begun to feel that they wouldn't make much progress staying in Nepal due to poor policy, lengthy bureaucratic process and problem in arranging funds to run the startups.

"You can take an example of the new Start-up Policy 2023 which was almost in the final stage to be approved but with the change in the government and leadership at the ministry, the process has been delayed. Oftentimes, the new leadership doesn't take the ownership over the decisions of its predecessor even though the programme is a good one," said Acharya.

According to him, procedural hurdles have troubled many start-ups while the requirement to get registered for the Value Added Tax and the like has also been burdensome for the new enterprises that have just began to work on their innovative ideas. Instead of refining their ideas and exploring the market and potential of growth, young entrepreneurs have to spend a good amount of time in fulfilling the legal requirement of business registration and operation.

 

Funding the startups

Start-ups in the country don't have sources to obtain the funds to run the business. Banks don't mobilse loans on project basis; they ask collateral, primarily land or a house, to provide business loan.

The government has long been parroting 'project-based financing' while the private sector organisations have also been demanding for the same but that hasn't materialized yet.

"Brilliant ideas failed to be implemented in absence of funds. BFIs only invest in the business that has already been set up and has begun making profits," said Kreeti Khatiwada, a start-up expert.

According to her, the lack of definition of start-up has severely affected them in terms of financing since the banks don't have parameters to screen start-up business.

Meanwhile, there is no exit policy for the start-ups.

According to the Department of Industry, poor coordination among the line ministries like the MoICS and Ministry of Finance, National Planning Commission, Nepal Rastra Bank and provincial governments, had stalled the process of implementation of the startup programmes. 

Impressive potential

However, this lack of policy has not deterred young entrepreneurs from developing innovative business ideas and developing successful enterprises. They established themselves by following the rules and policies which were made for SMEs, not for them.

An estimate made by an international firm based in India had projected that by 2027, the start-up market in Nepal would hit US$ 500 million (Rs. 65 billion).

Therefore, the country should start to invest in start-ups and incubation centres at the universities and colleges, said Aryal. He said that interdisciplinary degree or collaborative programmes would help the students to have better ideas about the business operation and understand the socio-economic condition of their society and markets.

Likewise, Acharya said that Nepal should learn from India and can adopt the model the neighbour is implementing. It is said that India is making one unicorn (startup worth more than US$ 1 billion) in a month.

Startup policy

New Start-Up Policy 2023, which was recently sent to the MoF by the MoICS to make a review on some provisions, could address most of the problems, said Juna Mathema, Chairperson of the Startup and Innovation Forum at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

The FNCCI was the key institution that formulated the draft of the policy in cooperation with various stakeholders including the International Labour Organization (ILO).

It has defined the startup business, incubators, investment modalities. Some of the definition of the policy draft has already been used by the Department of Industry while it called applications from the startups to mobilise government financial support.

The policy has considered an enterprise run by a group of entrepreneurs and which hasn't crossed seven years from the start of its business operations.

Mathema is hopeful that the new policy would streamline the programmes and activities announced to support the young entrepreneurs and startups. 

Published in The Rising Nepal daily on 22 July 2023.   

स्टार्टअप उद्यमीका सकस

 काठमाडौँ, ललितपुर र भक्तपुरका ऐतिहासिक भित्री सहर ज्यादै घना र भिडभाडपूर्ण छन् । पछिल्लो समय विस्तार भएका क्षेत्रमा त घर भेट्न मुस्किल छ भने असन वा पाटनका प्राचीन गल्लीमा बनेका घर भेट्न कति दुष्कर होला ? अनलाइनबाट खरिद गरिएका सामान डेलिभरी गर्नेहरूको सास्ती त झन् कति कति । 
सन् २०२० को जुनदेखि राजविक्रम महर्जनको टोलीले काठमाडौँ उपत्यकाका नगरपालिकाहरूलाई घरको नम्बरिङका लागि ड्रोन म्यापिङमा सघाइरहेको थियो । नगरपालिकाहरूले स्थानीय योजना तथा अन्य प्रयोजनका लागि सो म्यापिङ प्रयोग गर्न चाहन्थे । उहाँहरूले घरबाटै काम गरिरहनुभएको थियो, बन्दाबन्दीका कारण बाहिर जान पनि समस्या थियो । त्यस बेला राजलाई कोभिड महामारीमा शरीरमा अक्सिजनको मात्रा नाप्ने अक्सिमिटर किन्नुपर्ने भयो । उहाँले कुनै एक अनलाइन पसलबाट अक्सिमिटर मगाउनुभयो । डेलिभरी ब्वाईले घर पत्ता लगाउनै सकेन । उहाँले चीनमा पढ्दा अधिकांश सामान अनलाइनबाट किन्नुहुन्थ्यो र डेलिभरी दिनेले ढोकामै ल्याइपु¥याउँथ्यो । भारतमा तालिम लिँदा पनि त्यस्तै सजिलो भएको थियो तर यहाँ त विक्रेताले उहाँको घर नै भेटेन । डेलिभरी ब्वाई घना बस्तीका गल्लीहरूमै अलमलमा प¥यो, उसलाई घरसम्म ल्याउन पाँच/सात पटक फोन गर्नुप-यो । 
उता आफू हाई रिज्योल्युसनको ड्रोन म्याप बनाउँदै हिँडिरहेको छ, यता आफ्नै घर भेट्न मुस्किल छ । यो त छेकछन्दै नमिलेको जस्तो कुरो भयो । राजलाई छटपटी भयो । त्यस बेला काठमाडौँ उपत्यकाका नगरपालिकाहरूले धमाधम घरको नम्बरिङ गरिरहेका थिए तर त्यसरी राखिएको घर नम्बर अनलाइन वा गुगल म्यापमा खोज्दा भेटिँदैनथ्यो । अबको जमानामा अनलाइनमा खोज्न नसकिने घर नम्बरको के अर्थ ? 
त्यसैबिच कीर्तिपुर नगरपालिकाले उहाँहरूलाई घर नम्बरबाट ठेगाना खोज्न सकिने एप बनाउन अनुरोध ग¥यो तर उहाँहरूले सुझाव दिनुभयो– “बरु हामी एप निःशुल्क बनाइदिउँला तर बनाइसकेपछि कीर्तिपुर नगरपालिका मात्र होइन, नेपालका सबै महानगर र नगरपालिकाहरूको घर नम्बर राख्नुस् ।” 
यदि प्रत्येक स्थानीय निकायले आफ्नो मात्र एप बनायो भने त काठमाडौँ जाँदा एउटा एप, कीर्तिपुर जाँदा अर्को एप, ललितपुर जाँदा फेरि अर्को एप चाहिने भयो । आखिर सेवाग्राहीले कति वटा एप चलाउन सक्छन् ? अनि त्यो कत्तिको व्यावहारिक हुन्छ ? अब ७५३ स्थानीय निकायका लागि त्यत्ति नै एप बनाउनुपर्ने हुन्छ र त्यो भनेको समय, साधन र स्रोतको दुरुपयोग मात्र हो । त्यही चासोको फलस्वरूप सबै गाउँबस्तीहरूलाई एउटै मञ्चमा जोड्ने गरी ‘गल्ली म्याप’को अवधारणा विकास हुन गयो । 
गल्ली म्यापको नामकरण
गल्ली म्यापको सिर्जना र विकासका पछाडि तीनजना युवाको सपना र योगदान छ । उहाँहरू हुनुहुन्छ– जनम महर्जन, असुन शाक्य र राजविक्रम महर्जन । उहाँहरू सँगै कलेज पढ्दै हुर्कनुभएको हो । जनम र असुन प्रोग्रामर हुनुहुन्छ भने राज एरोनटिकल इन्जिनियर । “लकडाउनमा हामी के गर्न सक्छौँ भनेर छलफल गरिरहेका थियौँ । त्यस बेला दक्षिण कोरियामा मास्टर्स डिग्री पढ्न गएका जनम लकडाउनका कारण उतै अड्किएका थिए । हामीले त्यस बेलासम्म उपलब्ध डेटा राखेर गल्ली म्यापको प्रोटोटाइप विकास ग¥यौँ । नाम के राख्ने भन्ने टुङ्गो लागेको थिएन तर एपमा यो राख्ने र त्यो राख्ने अनि यो छुटाउन नहुने भन्दै गर्दा त्यो ठुलो बन्दै गयो,” राजले भन्नुभयो । 
नाम सजिलो र आकर्षक हुनुपर्छ भन्ने उहाँहरूको मान्यता थियो । संसारभर गुगल म्यापको प्रयोग हुन्छ तर उहाँहरू त त्यसमा नभएको विशेषता लिएर बजारमा जाँदै हुनुहुन्थ्यो । नाम त्यसै अनुसार जुराउनुपर्ने थियो र त्यसमा नेपालीपन पनि झल्कियोस् भन्ने उहाँहरूको चाहना थियो । उहाँहरूले घर नम्बर राखौँ भन्नेबारे छलफल गर्नुभयो तर अन्तिममा खास देखाउन चाहेको त गल्ली थियो । त्यसैले एपको नाम ‘गल्ली म्याप’ राखियो । 
१५ हजारमा सुरु
तीन वर्षअघि जम्माजम्मी १५ हजार रुपियाँको लगानी (राज, असुन र जनमको सिप परिश्रमबाहेक) मा गल्ली म्याप सुरु भएको हो । त्यो १५ हजार रुपियाँ पनि सर्भरका लागि डोमेन किन्न खर्च भएको थियो तर त्यसपछि विभिन्न विशेषताहरू थप्दै एपलाई परिस्कृत बनाउँदै जाँदा खर्च पनि बढ्दै गयो । अहिले गल्ली म्यापमा १२ जना दक्ष जनशक्ति जोडिएका छन्, जसमा धेरैजसो प्रोग्रामरहरू छन् । व्यापार, प्रशासन र मानव स्रोतलगायतका क्षेत्र राज आफैँले हेर्दै आउनुभएको छ । 
राजको टोलीले आफ्नै धुनमा काम गरिरहेको थियो । एक पटक स्टार्टअप तालिमका लागि भारत जाने अवसर मिल्यो, त्यहाँ बुझेका र देखेका कुराले बल्ल राजको आँखा खुल्यो । ज्यादै परिष्कृत रूपमा व्यावसायिक योजना बनाउने, लक्षित ग्राहक वा भौगोलिक क्षेत्रको विश्लेषण गर्ने, लगानी जुटाउने विकल्प बनाउने र त्यसको कार्यान्वयन गर्ने ‘भ्यालु चेन’का अन्य संस्था वा कम्पनीसँग सहकार्य र समन्वय गर्ने जस्ता अनेकौँ विषयमा ध्यान दिइएको त्यहाँ उहाँले देख्नुभयो । उहाँले आफ्नो व्यवसायका लागि यस्ता विषयका बारेमा सोच्नुभएकै थिएन । त्यसले कम्पनीको विकास र विस्तारका लागि ज्यादै ठुलो ज्ञान प्रदान गरेको उहाँ ठान्नुहुन्छ । 
गल्ली म्याप अझै पनि परीक्षणकालमै भएकाले त्यसबाट आम्दानी हुन सकेको छैन । “अहिले हामी बिटुसी (व्यवसायदेखि उपभोक्तासम्म) र बिटुबी (व्यवसायदेखि व्यवसायसम्म) मा काम गरिरहेका छौँ । सामान्य प्रयोगका लागि उपभोक्ताले कुनै शुल्क तिर्नु पर्दैन, गुगल म्याप चलाए जस्तै गरी निःशुल्क चलाउन सकिन्छ,” राज भन्नुहुन्छ । 
तर व्यावसायिक रूपमा एप चलाउँदा भने शुल्क तिर्नुपर्छ । हाल गल्ली म्यापका प्रयोगकर्ताहरूमा गो ट्याक्सी, वल्र्डलिङ्क र हुलाक सेवा जस्ता व्यवसाय र संस्थाहरू छन् । यीलगायत कुल १५ कम्पनीले गल्ली म्यापको परीक्षण प्रयोग गरिरहेका छन् । भविष्यमा यिनीहरूलाई लगाउने शुल्क भनेको प्रयोगका आधारमा हुनेछ । यिनीहरूको एप जति धेरै चल्यो वा डेलिभरी जति धेरै भयो, गल्ली म्यापको प्रयोग पनि त्यति नै बढी हुनेछ र शुल्क पनि बढ्दै जानेछ । 
त्यो भनेको ‘पे एज यु गो’ मोडल हो । यसलाई सजिलो गरी बुझ्नका लागि टेलिफोन वा बिजुलीको बिलको उदाहरण लिन सकिन्छ । बिजुली वा टेलिफोन जति बढी प्रयोग ग¥यो, ग्राहकले तिर्ने शुल्क पनि सोही अनुपातमा बढ्दै जान्छ । 
स्थानीय नक्साबाट आम्दानी
गल्ली म्यापको प्रारम्भिक व्यावसायिक गतिविधिको अनुमान अनुसार नेपालमा राम्रैसँग चलेको नक्सा प्रयोगकर्ता एपले वार्षिक पाँचदेखि छ लाख रुपियाँसम्म तिर्ने सम्भावना छ । त्यो भनेको यस्ता संस्थाहरूले अहिले गुगललाई तिर्नु पर्ने वार्षिक दायित्व वा शुल्कको आधा वा एकतिहाइ मात्र हो । त्यसैले गल्ली म्यापका प्रयोगकर्ताले विदेशी मुद्रा स्वदेशमै रोक्न र स्थानीय कम्पनीलाई प्रवर्धन गर्न सहयोग मात्र गर्ने छैनन्, आफैँले पनि उल्लेख्य व्यावसायिक लाभ प्राप्त गर्नेछन् ।  अहिले नै नेपालबाट गुगलले वार्षिक दसौँ लाख अमेरिकी डलर म्यापको सेवा बिक्रीबाट लैजान्छ । त्यो रकम यहीँ रोकिन सक्छ । गल्ली म्यापले दिने सटिक ठेगानाले व्यवसायमा बढाउने कुशलता तथा समय र खर्चको बचतबाट हुने लाभको हिसाब त बेग्लै छ । राजको टोली ‘ओपन सोर्स म्यापिङ’ मा हुने त्रुटि र कमजोरी सच्याउँदै अघि बढिरहेको छ । 
गल्ली एक्सप्रेस
काम थालेको तीन वर्षपछि बल्ल गल्ली एक्सप्रेस प्रालिको नाममा एक महिनाअघि मात्र उहाँहरूले कम्पनी दर्ता गर्नुभएको हो । त्यस क्रममा उहाँहरूले के थाहा पाउनुभयो भने नेपालमा सबै प्रकारका कम्पनीको दर्ता प्रक्रियामा खासै भिन्नता रहेनछ । स्टार्टअपहरूलाई विशेष प्रक्रिया वा सुविधामार्फत सहजीकरण गर्ने छुट वा अन्य व्यवस्था गर्ने प्रचलन पनि रहेनछ । त्यसै गरी सेयर होल्डिङ र पुँजीगत लाभकरका बारेमा राजलाई चित्त नबुझेका धेरै कुरा छन् । ससानो रकममा पनि पुँजीगत लाभकर लगाएको उहाँलाई मन परेको छैन । 
“कम्पनीमा लगानी जुटाउनका लागि भनेर १० लाख रुपियाँको सेयर बेच्दा हातमा मात्र साढे छ लाख रुपियाँ पर्ने रहेछ, म त छक्कै परेँ,” उहाँले भन्नुभयो, “यस्तो व्यवस्थाले त सानो लगानीमा स्थापना हुने प्रयास गरिरहेका स्टार्टअपलाई सहजीकरण गर्दैन ।” यसरी कम्पनी स्थापित गर्ने प्रयासमै अवरोध भएको उहाँको बुझाइ छ । “त्यो सेयर कर बुझाउन नभई कम्पनीका लागि लगानी जुटाउन बेचेको पो हो त,” उहाँ भन्नुहुन्छ, “तर कानुनको परिपालनाको विकल्प भने छैन ।”
उहाँले नबुझेको कुरा अर्को पनि छ । नेपालमा राइड सेयरिङ कम्पनीहरू दर्ता भएरै चलिरहेका छन् तर यातायात विभागमा गयो भने ‘ती गैरकानुनी हुन्’ भनिएको पाइन्छ । “यो विरोधाभास किन ?” उहाँ प्रश्न गर्नुहुन्छ । नीतिगत रूपमा दुःख दिएकै कारणले स्वदेशी राइड सेयरिङ कम्पनी टुटलले आफूलाई विकसित गर्न सकेन । एक त साधनस्रोतको सीमितता अनि अर्कोतर्फ सरकार र सम्बन्धित निकायको कोपभाजन । यस्तो अवस्थामा स्टार्टअपहरूका लागि अनगिन्ती चुनौती छन् । 
गल्ली म्यापले अहिलेसम्म सरकार वा मातहतका कुनै पनि निकायबाट आर्थिक वा भौतिक कुनै पनि प्रकारको सहयोग पाएको छैन । सरकारले घोषणा गरेका विभिन्न ऋण तथा अनुदान सहयोगका लागि उहाँहरूले प्रत्येक वर्ष आवेदन दिनुभएको त छ तर अहिलेसम्म कुनै त्यस्तो सहयोग पाउनुभएको छैन । सरकारले पठाएको गुगल फर्म उहाँहरूले भर्न छाड्नुभएको छैन तर नपर्ने हो कि नपाउने हो बुझ्न पनि सक्नुभएको छैन । 
हालै गल्ली म्यापले आफ्नै परिवार र साथीहरूबाट लगानी जुटाएको छ । त्यसले आगामी एक वर्षसम्म कम्पनीलाई सञ्चालन गर्न सकिने छ । त्यसैले त्यस बेलासम्ममा कम्पनी सञ्चालनका लागि आवश्यक स्रोत आफैँ सिर्जना गर्न सक्ने हुनुपर्ने चुनौती उहाँहरूलाई छ । कम्पनीलाई आम्दानीको एक तहमा पु¥याउने र विभिन्न भेन्चर क्यापिटल वा लगानीकर्ताबाट स्रोत जुटाउने उहाँहरूको लक्ष्य छ । 
लगानीकर्ताहरूले कुनै पनि सेवा वा वस्तु बजारका लागि उपयुक्त छ वा त्यो आवश्यक छ र चल्छ भन्ने कुराप्रति विश्वस्त भएर मात्र लगानी गर्छ । गल्ली म्यापको बजार सम्भावना निरन्तर बढ्दै जाने भएकाले आवश्यक लगानी र स्रोत जुटाउन त्यति गाह्रो नहुने आकलन राजको छ । अहिले एपको परीक्षण भइरहेको छ । यो व्यावसायिक रूपमा सञ्चालनमा आएपछि कम्तीमा पनि छ महिनाको आम्दानीको हिसाबकिताब देखाउन सकिने भएमा लगानीकर्ता जुटाउनका लागि प्रयत्न गर्न सजिलो हुने छ । 
अर्कातर्फ लगानीकर्ताले व्यवसाय सुरु गर्नका लागि होइन, त्यसको वृद्धिका लागि लगानी गर्छन् । ‘सिड मनी’ दिने भनेको सरकारले हो तर नेपालमा सरकारले यस्ता कार्यक्रम घोषणा गर्ने तर कार्यान्वयन नगर्ने प्रचलन बढी छ । त्यसबाट स्टार्टअपहरूले लाभ लिन सकिरहेका छैनन् । 
यद्यपि राज र उहाँजस्ता स्टार्टअप व्यवसायीहरूले काठमाडौँस्थित भारतीय र अमेरिकी दूतावासहरूबाट स्टार्टअप सञ्चालन, व्यवस्थापन, कानुनी परिपालना, बजार व्यवस्थापन, लगानी व्यवस्थापन आदि विषयमा अभिमुखीकरण तालिम लिन पाउनुभएको छ । भारत, सिङ्गापुरलगायत मुलुकमा पुगेर त्यहाँका स्टार्टअप र अन्य कम्पनीहरूको अभ्यास अवलोकन गर्न पाउनुभएको छ । 
विदेशमा स्टार्टअपहरूलाई दर्ता तथा पेटेन्टमा सरकारले सहयोग गर्ने गरेको छ, जुन यहाँ छैन । भारतमै हेर्ने हो भने त्यहाँ स्टार्टअपको वार्षिक आय तीन करोड भरतीय रुपियाँ नपुग्दासम्म कुनै पनि प्रकारको कर लाग्दैन । त्यसले त्यहाँका व्यवसायीलाई ज्यादै सहयोग पुगेको छ । त्यस्ता कम्पनीका लागि कानुनी, आर्थिक, प्रशासनिक, बजार र व्यावसायिक विकास र व्यवस्थापनका विषयमा स्टार्टअप इन्डिया नामक संस्थाले निरन्तर सहयोग गरिरहेको छ । 
राजले युएनडिपीको प्रतिस्पर्धा जितेर भियतनाम जाने अवसर पनि प्राप्त गर्नु भयो । भियतनामले प्रविधि, व्यवसाय र बजारका क्षेत्रमा गरेको अभूतपूर्व विकास देखेर उहाँ चकित पर्नुभयो रे । “त्यहाँ त अकल्पनीय विकास भएको रहेछ, त्यो देश त हामीभन्दा कैयौँ गुणा अगाडि छ, तुलनै गर्न नमिल्ने गरी,” उहाँले सुनाउनुभयो । 
नेपाल फर्केर कम्पनी दर्ता गर्न थाल्दा बल्ल वास्तविकताको महसुस भयो उहाँलाई । त्यसै गरी नबिल बैङ्कले उहाँ र उहाँजस्तै धेरैलाई व्यवसाय सञ्चालनका लागि एक विशिष्ट प्रकारको तालिम पनि दिएको थियो । त्यसले आफूमा व्यावसायिक आत्मबल विकास गरेको उहाँको बुझाइ छ तर नेपालमा ऋण लिएर व्यवसाय गर्न सजिलो छैन । धितोमा आधरित लगानी हुने र परियोजना सञ्चालनका लागि ‘ग्रेस’ अवधि नहुने भएकाले स्टार्टअपहरूलाई त्यसले सहजीकरण गर्दैन । व्यवसाय विकास गर्ने कि ऋण तिर्ने चिन्तामा भट्किरहने ? स्टार्टअपका लागि अहम् प्रश्न हो । यसैबिच विदेशी लगानीमा लागेको सीमाले पनि स्टार्टअपहरूलाई समस्यामा पारेको छ । ससानो लगानी विदेशबाट जुटाउन त्यसले रोकिरहेको छ । स्टार्टअपहरूलाई सहयोग पुग्ने गरी त्यो व्यवस्थामा केही संशोधन गर्नुपर्ने उहाँहरूको धारणा छ । 
सरकारले घोषणा गरेका च्यालेन्ज फन्डदेखि स्टार्टअप सपोर्ट कार्यक्रम लागु नै हुन सकेनन् । त्यस्तै गरी निजी क्षेत्रको ठुलो संस्था नेपाल उद्योग वाणिज्य महासङ्घले घोषणा गरेको स्टार्टअप कार्यक्रममा समेत पर्याप्त आवेदन परेनन् । 
निजी क्षेत्रका युवा व्यवसायीहरूका सङ्घसंस्थाबारे पनि धेरै स्टार्टअप व्यवसायीहरू जानकार छैनन् र जानकारी भएकाहरू पनि ती संस्थासँग जोडिन त्यति उत्साहित देखिँदैनन् । त्यहाँको प्रवेश शुल्क नै ४० हजारदेखि ५० हजार रुपियाँको हाराहारीमा छ । ठुला व्यवसायीहरूले स्टार्टअपहरूलाई गर्ने व्यवहारका कारण पनि यस्ता उद्यमीहरू त्यस्ता संस्थाप्रति आकर्षित नदेखिएका हुन् । 
आफ्नै प्रयासमा सुरु भएका स्टार्टअपहरूमा सुरु लगानी केही लाख रुपियाँको मात्र पनि रहेको हुन्छ । उनीहरूका लागि ५० हजार रुपियाँ भनेको ठुलै रकम हो । त्यस्तै निजी क्षेत्रका संस्थाहरूले सञ्चालन गर्ने विभिन्न स्टार्टअप परियोजनाहरूका बारेमा अधिकांश स्टार्टअप उद्यमीले थाहै पाउँदैनन् । त्यस्ता कार्यक्रमका बारेमा पनि उचित प्रचारप्रसार र प्रवर्धन हुनु आवश्यक छ ।  

Published in Gorkhapatra daily on 16 Asar 2080. 

Finance Ministry asks govt agencies to put money in microfinance fund

Kathmandu, Sept. 21

Finance Minister Janardan Sharma has said that a certain percentage of the money in government institutions will be deposited in microfinance fund.

“The process of depositing a certain per cent of the amount of the institutions to the fund to provide concessional loans to small farmers and small start-ups has been moved ahead,” he said while addressing the 49^th anniversary ceremony of the Deposit and Credit Guarantee fund (DCGF).

While saying that it is difficult and complicated for small farmers and small businessmen to get loans from big banks and financial institutions, Minister Sharma said that now loans will be provided easily from microfinance fund.

"A mechanism is being created to provide a certain per cent of the capital in government institutions to provide loans to small farmers, small entrepreneurs and small startups through the Microfinance Fund in a hassle-less manner," he said.

The government is also developing a procedure to mobilise loans to the small farmers and entrepreneurs by all the BFIs through the fund. The finance minister also urged the BFIs and stakeholders to give suggestions for the procedure of that mechanism.

The budget of the fiscal year 2022/23 mentions that a microfinance fund of Rs. 500 billion will be created, and concessional loans will be given to small farmers, small entrepreneurs and startups through the same fund.

Likewise, Minister Sharma urged the BFIs to invest in small production-oriented businesses while mentioning that imports cannot be substituted without increasing domestic production.

Such support will help in increasing the production which will support in increasing agri-processing industries and export of such goods, he maintained.

According to him, the main objective of the government is import substitution. There is no other alternative to increase production for import substitution. Through small industries that can increase agricultural production and process it to a certain level, domestic as well as export markets can be created.

He said that the existing liquidity problem will be solved with a joint effort by the MoF, Nepal Rastra Bank and other agencies after a comprehensive discussion.

Similarly, Minister Sharma mentioned that pandemics, natural disasters and unexpected events have been adversely fueling the price hike and creating economic challenges.

“Even in such cases, there is an urgent need to build an economy that meets the minimum needs. There should be an economy that can easily handle the minimum needs of the people. We have enough resources and means for this," he said.

The working group formed by the ministry to study the viability and operation of microfinance fund has submitted the report with the draft of fund management regulations to Minister Sharma on Tuesday. The group was led by Suman Dahal, Joint Secretary of the MoF.

Published in The Rising Nepal daily on 22 September 2022. 

Governor directs banks to make investment cautiously

Kathmandu, Dec. 29

Governor of the Nepal Rastra Bank (NRA) Maha Prasad Adhikari has directed the banks and financial institutions (BFIs) to apply caution while mobilising credit warning that the inflated deposits may be lent to the risky areas.

Credit is growing in recent months after the months-long lockdown and business closure but you must be cautious in mobilising it as there are risks of investing in risky sectors due to the growing competition, he said while speaking at the annual function of Nepal Bankers’ Association (NBA).

The large funds accumulated in the BFIs has pressurised them to invest it aggressively.

The governor suggested to channelise the investment to the productive sector.

“Private sector lending is gradually increasing. The credit demand was not encouraging in the beginning of the current fiscal year but it has shown good signs now,” said Adhikari.

Class ‘A’ commercial banks alone have mobilised Rs. 4200 billion in deposits and Rs. 3200 billion in loans.

He also said that the central bank had given priority to the electronic payment system.

“We are replacing the traditional payment system with the modern and technological one. Financial infrastructure is already created. So all stakeholders should give priority to the electronic payments,” he said.

NRB has launched a QR code payment campaign and recently implemented it at the Naxal Vegetable Market in collaboration with Sanima Bank. According to the NRB, QR-based payment will reduce the dependency on the imported technology and cards. It’s a safe method in case of COVID-19 like pandemic as well.

Governor Adhikari said that the central bank must use instruments to control wrongdoing in the markets and facilitate the banking industry. However, we are not interested in the micro-management of any bank and financial institutions (BFIs), he said.

Earlier in the programme, Pawan Kumar Golyan, Chairman of Confederation of Bank and Financial Institutions of Nepal (CBFIN), had said that NRB’s micro-management wouldn’t have good impacts so the central bank should work it in coordination with the NBA.

He also said that there were multiple changes in the Monetary Policy of 2020/21 in the past five months which had created confusion among the bankers and customers.

On the occasion, NBA facilitated former Governor of the NRB Satyendra Pyara Shrestha.

He said that saving and investment were key to the growth of the economy and development of the country.

Bhuvan Dahal, President of the NBA, said that the technology-based banking had been expanded to rural and remote areas as well.

Commercial bank’s capital fund is above the NRB-set limit so the depositors must not be worried about the safety of their deposit, said Dahal.

Chief Executive Officer of Agricultural Development Bank Limited Anil Upadhyaya has been elected unanimously as the Vice-president of the association. Likewise, Santosh Koirala of Machhapuchchhre Bank Limited and Deepak Kumar De of Nepal SBI Bank Limited are elected as the members.

Published in The Rising Nepal daily on 30 December 2020. 

Govt relief instrumental in SMEs rehabilitation

Kathmandu, Dec. 30

The relief programmes announced to rehabilitate the COVID-19 affected business and enterprise has proven effective for the small and medium enterprises (SMEs).

More than 33,000 small clients that had up to Rs. 1.5 million bank loan portfolio have obtained the government financial relief. The Nepal Rastra Bank (NRB) has approved the refinancing package worth Rs. 82 billion.

“SMEs and vulnerable businesses have been particularly benefitted by the relief and rehabilitation programmes of the government and the central bank,” said Maha Prasad Adhikari, Governor of the NRB, in a virtual interaction with the Nepalese Association of Financial Journalists on Wednesday.

Likewise, about Rs. 9 billion relief to the businesses and industries has been provided with the 2 per cent discount in interest of bank loan.

“Relief programmes are being gradually utilised by the needy businesses. Currently, there is enough liquidity in the system and a sizable number of entrepreneurs are utilising their own funds in the post-lockdown situation. The government-announced relief programmes would be fully subscribed within a couple of months,” said Adhikari.

Likewise, private sector lending has increased significantly in the last two months of 2020 which has given hope to both the banking industry and economy.

He said that the central bank had given priority to maintaining liquidity in the market and ensuring that the enterprises do not experience resource crunch when they need it.

According to him, the financial sector regulator has been planning to evaluate the banks and financial institutions (BFIs) on the basis of their implementation of the special relief packages announced in the wake of the coronavirus pandemic.

This kind of evaluation would be made after April 2021 while the bank’s contribution to the relief programmes would be measured after the second quarter of the current fiscal year 2020/21.

Governor Adhikari also said that the economy did not contract as it was expected earlier this year. “The recovery trend is quite good globally and it is replicated in Nepal as well. Only 6 per cent businesses were running in full capacity in May this year while the number has gone up to 57 per cent in December,” he said.

Construction and trading sector are doing particularly well while tourism is the sector that will have a delayed recovery.

Published in The Rising Nepal daily on 31 December 2020. 

Call to offer incentives to enterprises

Kathmandu, Jan. 9:

Stakeholders have said that the new industrial enterprises act should be oriented toward facilitating and promoting investments rather than regulating and controlling enterprises.

Speaking at a roundtable discussion on ‘Industrial Enterprises Bill (Draft)’ jointly organized by Society of Economic Journalists-Nepal (SEJON), Economic Policy Incubator and UKaid on Wednesday, economists, business leaders and former bureaucrats said that the new industrial enterprises act should provide incentives to the enterprises in Nepal to help increase the industrial contribution in the gross domestic product.

Their call for provisions facilitating the industrial investments comes in the wake of the preparation of the Ministry of Industry, Commerce and Supplies to give a final touch to the new Industrial Enterprises Bill that will replace the existing the Industrial Enterprises Act that was enacted in 2016.

“The draft bill has proposed stricter provisions for fine and punishment even for committing a minor offence,” said Shekhar Golchha, senior vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), adding that the fine and punishment should be revised.

He also said that the provision related to corporate social responsibility and classification of industries, among others, should be revisited for the promotion of industrial sector in the country.

Hari Bhakta Sharma, President of Confederation of Nepalese Industries, said that the law should be the most liberal law in the South Asia region to attract investment in the country.

“If we see other countries, including states of our neighboring country India, they are moving aggressively toward providing incentives to their industries. If our law does not take into consideration those developments, we cannot promote investment in industrial sector,” said Sharma.

Among others, he urged the government to change the provision that put restriction on selling the land bought by industrialist for setting up industry. He also said that it would be very onerous for industries, mostly small and medium level industries, to share their data with the Department of Industries in every six months as stated in the draft bill of the act.

Spending in the corporate social responsibility should be allowed for deduction for tax purpose, he said.

Dr Shankar Sharma, former vice chairperson of the National Planning Commission, underlined the need of strong coordination between various government agencies for the effective implementation of the act. “There are several good provisions in the draft bill despite some weaknesses. But, the key to the effective implementation is the strong coordination between government agencies,” added Sharma, who is also the team leader of EPI.

Yam Kumari Khatiwada, the secretary at the Ministry of Industry, Commerce and Supplies, said that the new draft bill focused on further simplifying the process of entry, operation and exit of industrial enterprise in the country.

Published in The Rising Nepal daily on 10 January 2019. 

'LDCs must prioritise dynamic enterprise to transform economy'

Kathmandu, Nov. 20: The United Nations Conference on Trade and Development (UNCTAD) on Tuesday said that the governments in the world’s most disadvantaged countries must prioritise dynamic enterprise and enact policies to help them thrive, create jobs, innovate and transform the economy.

“Large numbers of people in the Least Developed Countries (LDCs) are forced into small-scale, low-value entrepreneurship by necessity,” said the Least Developed Countries Report 2018 published by the UNCTAD which was made public globally today.

“Entrepreneurship is dominated by self-employment, which accounts for 70 per cent of total employment, informal micro and small enterprises with low chances of survival and growth and little propensity to innovate. Small companies account for 58 per cent of all firms in these countries,” added the annual flagship report of the organisation.

The report also revealed that the vast majority of entrepreneurs in LDCs were ‘necessity-driven’. There were 1.7 times as many early-stage entrepreneurs in LDCs on average who described themselves as ‘opportunity-driven’ than there were who said they were ‘necessity-driven’, compared with 2.8 times as many in the developing countries.

The governments in LDCs should, therefore, focus on boosting entrepreneurs and establish firms that seize opportunities to create innovative products and services, employ more people and grow dynamic businesses that have a transformative, ripple effect throughout the economy, said UNCTAD.

While at least 20 out of the 47 LDCs have national industrial policies that articulate to a various extent the interface between entrepreneurship and structural transformation, the report says that much less attention is currently devoted to the determinants of entrepreneurship.

The report calls for a renewed ‘developmental state’ that engages in transformative mission-oriented investments and involves the private sector in a strategic vision that charts a clear path for development.

“Policymakers should provide support that is tailored to the life-cycle of firms based on objective selection criteria and linking clearly communicated time-bound rewards, advantages and incentives to performance,” read the report.

Since linking LDCs to global value chains has not provided any significant boost to the local enterprise development, the report has called for greater attention to the development of domestic supply chains.

The report said that a pragmatic, strategic and evolutionary approach was needed to increase public-sector capabilities, enact locally-appropriate institutional reforms, build on centres of excellence promote policy learning and nurture coalitions for change.

Dr. Swarnim Wagle, former Vice-Chairman of the National Planning Commission (NPC), said that the companies that had a female in top manager had larger proportion of full time women employees.

Nepali business firms with female managers have 37.3 per cent women employees while the companies that have male boss have only 14.2 per cent women workers, he said with reference to the 2013 Enterprise Survey conducted by the World Bank.

According to him, compared to the Small and Medium Enterprises, large-scale industries have more female workers percentage. Small-scale industries have 17.7 per cent female workers, medium-scale 19.4 per cent and large-scale 28.6 per cent.

Only one in five companies has their own website.

Dr. Wagle said that it was unfortunate in the part of Nepal that it couldn’t create environment to utilise the human resources, that came out from agriculture, in the manufacturing sector.

He said that entrepreneurship support should go beyond improvements to the business environment, and needed to be tailored to the firm life-cycle.

“Only entrepreneurship policies that explicitly target structural transformation ensure long-term sustainability and inclusiveness, and help reaching Sustainable Development Goals (SDGs),” he said.

Representative of the UN Women Wenny Kusuma said that economic and social growth go hand in hand.

“Promote creativity in youth in order to achieve the targets of economic and social development as well as the SDGs,” she said.

Ayushi KC, founder and Chief Executive Officer (CEO) of Khali Sisi, said that the government should create a reliable database and policy to address the demand of youth in order to promote entrepreneurship.

“International success stories mostly are not fit to our society. Therefore, we need to create our own success stories,” she said.

Sixit Bhatta, founder of Tootle, said that it was easy to start a business venture in Nepal but difficult to scale it up.

“It is better to scale up a few enterprises instead of providing livelihood support to many,” he said.

Likewise, CEO of Karkhana Pavitra Gautam said that there was a huge gap for innovation in Nepal and the stakeholders should come together to promote innovation through education.

Published in The Rising Nepal daily on 21 November 2018. 

MEDEP to be enforced as MEDPA from August

Kathmandu, July 18: One of the most successful entrepreneurship development initiatives of the government, the Micro-Enterprise Development Programme (MEDEP), is being implemented as the Micro-Enterprise Development for Poverty Alleviation (MEDPA) from coming August.

The programme running for two decades is executed in collaboration with the United Nations Development Programme (UNDP) and the Australian Government with the aim of poverty alleviation through enterprise development and job creation in the villages.

MEDEP has created more than 131,000 entrepreneurs of which 74 per cent are women, more than 26 per cent Dalits, 38 per cent ethnic people and about 70 per cent youth.

The programme has supported 36,000 micro-enterprises to graduate to small enterprises and created more than 172,000 employments.

It has also created 741 community facility centres (CFCs) and supported 15,000 ultra-poor people.

The flagship programme of the Ministry of Industry, Commerce and Supplies (MoICS) was implemented in 11 districts for the first time in 1998-2003, and is expanded to 38 districts in its phase 4 programme 2013-2018.

With the MEDEP converting to the MEDPA, the programme will be expanded to all 77 districts across the country. The MEDEP that created some internationally acclaimed micro-entrepreneurs like Kesha Pariyar will exit on 31 July.

Minister for Industry, Commerce and Supply Matrika Yadav appreciated the programme for its contribution in enterprise development, job creation, livelihood support and resource mobilisation at the local level.

“All provinces and local governments should be active in executing this programme. The federal government will coordinate and facilitate them whenever and wherever necessary,” he said while speaking at a national seminar on ‘Micro-enterprise for economic prosperity’ organised by the MoICS on Wednesday here.

Secretary at the ministry Yam Kumari Khatiwada said that Nepal was able to create a successful mode of micro-enterprise development, therefore, it has internalise the MEDEP and is executing MEDPA in all 77 districts.

The government has allocated Rs. 1.9 billion for micro-enterprise development for the current fiscal year 2018/19.

Australian Ambassador to Nepal Peter Budd expressed happiness on government’s internalisation of MEDEP and said that the programme will make an important contribution to poverty alleviation in the country.

Published in The Rising Nepal daily on 19 July 2018.