Startup Fest draws commitment of Rs. 245 million investment

Kathmandu, June 26

A preliminary agreement has been reached for the investment of Rs. 245 in various startup businesses at the CNIYEF Nepal StartUp Fest 2022 organised by the Young Entrepreneurs' Forum of the Confederation of Nepalese Industries (CNI) the other day in Kathmandu.

An initial investment agreement has been signed with the successful startup that reached the final of the competition. The YEF had called for investment proposals including projects to participate in the Startup Fest.

The fest had received more than 300 project proposals from across the country. Among them, the shortlisted projects were given the opportunity to present themselves at the fest. After the presentation in the presence of Secretary of the Ministry of Communications, Information and Technology, Dr. Baikuntha Aryal, the investors have reached a preliminary agreement to invest equity in the projects.

Startups with initial investment agreements include VoxCrow, Skill Services Private Limited, Team Veda, Kheti, Darkmatter Game Production, Digital Age Nepal, and Doctors on Call.

Team Ventures, Global Equity Fund, Adhyanta Fund Management, Himalayan Capital and Televenture Partners have signed agreements with those startups.

At the closing ceremony of the Startup Fest, Finance Minister Janardan Sharma presented awards to the shortlisted projects. He also said that the budget has given priority to the startups.

Earlier, Minister for Industry, Commerce and Supplies Dilendra Prasad Badu had said that the government has given high priority to cooperation with the private sector for economic prosperity. He said that the government was ready to encourage young entrepreneurs.

The Startup Fest was organised with the support from the National Planning Commission, Youth and Small Business Self-Employment Fund and the Indian Embassy in Nepal.

More than 40 startups had showcased their products and services at the Startup Fest. 

Published in The Rising Nepal daily on 27 June 2022.   

Prof. Sahni suggests focusing on student's behavioural stimuli

 Kathmandu, June 26

India’s noted behavioural scientist Prof. Sanjeev P. Sahni emphasised on 'maximising potential through behavioural competencies and performance enhancement among students'.

He was speaking at a programme organised in the Capital on Sunday.

Elaborating on enhancing various social, emotional, and cognitive abilities among students through competency mapping techniques, Dr. Sahni demonstrated how academic performance, emotional satiation and career success are functions of their behavioural stimuli.

“It is important to understand the relative strengths and weaknesses of the students and based on those identify key competencies that need to be worked upon. It is all about identifying skills and strengths of students in areas like teamwork, leadership and decision making and then build a corrective mechanism based on that,” said Dr. Sahni.

He also heads Jindal Institute of Behavioural Sciences (JIBS), and was recently also elected as the Vice President of the World Society of Victimology (WSV).

He asserted on using techniques like audio-visual infotainment, subliminal training, meditation, speed-reading, and memory games to improve the academic and social performance of students.

“There is a need for widening transdisciplinary approach in social-cognitive psychology studies in a bid to assess, evaluate and then find remedies and solutions to the laxities of the student community,” he said.

The approach to processing information and making a behavioural decision is also an important component in judgment and decision and promote overall welfare of the student. 

Published in The Rising Nepal daily on 27 June 2022.   

WB emphasizes support for green development

 Kathmandu, June 26

World Bank's Managing Director Mari Pangestu expressed commitment on behalf of the bank to support Nepal’s energy sector development through clean sources including hydropower and cross-border power trade.

The WB recognises the transformative potential of the proposed Upper Arun Hydro Electric Project, she said while concluding her five-day visit to Nepal. The support would be provided as the part of achieving Green, Resilient, and Inclusive Development (GRID), the WB said in a statement.

Reiterating the World Bank’s commitment to support Nepal’s resilient recovery from the pandemic, she lauded Nepal as an early mover in pivoting towards GRID and expressed WB's support for the country's resilient recovery and sustainable development.

Pengestu was joined by Regional Vice President of WB for South Asia, Hartwig Schafer.

She met with President, Bidya Devi Bhandari, Prime Minister, Sher Bahadur Deuba, Minister of Finance, Janardan Sharma, and Minister of Energy, Water Resources and Irrigation, Pampha Bhusal.

According to the multilateral donor, the meetings focused on Nepal’s economy, the impact of the COVID-19 pandemic and the war in Ukraine, and Nepal’s pathways to GRID.

“Nepal is a champion in the region with the adoption of GRID as a strategic framework to guide development policy decisions,” said Pangestu. “As the largest multilateral funder of climate investments in developing countries, with more than $26 billion provided for climate action last fiscal year alone, the World Bank Group takes pride in helping countries such as Nepal lay the foundation for sustainable, inclusive, and resilient recovery.”

Pangestu also participated in a high-level dialogue with senior representatives from the Ministry of Finance, Ministry of Forests and Environment, development partners, private sector, and youth to unpack key issues and opportunities for GRID in Nepal.

The high-level event was organised on the basis of the September 2021 Kathmandu Declaration endorsed by the Government of Nepal and 16 Development Partners, which identified up to $7.4 billion in committed and potential support for GRID and paved the way for the development of a strategic action plan for Nepal.

“GRID is an integrated, cross-sectoral, and comprehensive approach to generating higher quality growth and development,” said Hartwig Schafer.

According to him, one of the pillars of the approach is creating inclusive opportunities especially for women who play a key role in economic recovery and the society which will require investment in shock-responsive social protection, green job creation, and measures to strengthen diverse voices in development processes.

 Meetings were also held with private sector and development experts, women leading climate action, and young Nepali entrepreneurs working with green and sustainable enterprises.

Pangestu and the World Bank delegation visited earthquake housing reconstruction sites in Kavre, as well as the proposed Upper Arun Hydro Electric Project site.

Published in The Rising Nepal daily on 27 June 2022.  

CIT offers 1.5 per cent additional returns

 Kathmandu, June 26

The Citizen Investment Trust (CIT) has decided to give 1.5 per cent additional return from the profits of the fund to the participants of the Employees Savings Growth Retirement Scheme Programme.

The scheme will be implemented from the profits up to the fiscal year 2021/22 and about 298,000 participants of the scheme will be benefitted from it.

Employees Saving Growth Retirement Scheme is one of the major schemes introduced to the employees.

According to the CIT, the decision was taken at a meeting of the Board of Directors held on Sunday.

As per the schemes about Rs. 1.74 billion would be distributed to all the participants. The money will be directly deposited to the account of participants. 

Published in The Rising Nepal daily on 27 June 2022.  

7 percent local bodies fail to present budget

Kathmandu, June 25

About 7 per cent local bodies have failed to present the budget for the upcoming fiscal year 2022/23 by the stipulated date – 10^th of Ashadh or June 24 this year, set by the Intergovernmental Fiscal Arrangement Act, 2017.

Pokhara Metropolitan City has announced its budget a day later on Saturday while 26 municipalities and 25 rural municipalities couldn't present their policy, programmes and budgets till Saturday.

Madhes province tops the list of non-performing local bodies with 20 municipalities and 12 rural municipalities failing to announce the next year's budget.

Gandaki province is the only sub-national entity where all local governments have presented their budget.

According to Municipalities Association Nepal (MuAN), 26 municipalities have failed to present their budget – 3 from Province 1, 20 from Madhes, 1 from Bagmati and 2 from Karnali.

Likewise, National Association of Rural Municipalities said in a statement that 12 rural municipalities of Madhes, three of Lumbini, two of Bagmati and one each of Karnali and Sururpaschim couldn't announce their annual estimates of income and expenditure. It also informed that contact with two rural municipalities each from Karnali, Sururpaschim and Province 1 couldn't be made till Saturday evening.

In terms of percentage, 95 per cent of rural municipalities (435 out of 460) have presented their budget while 91.1 per cent municipalities (267 out of 293) could announce it. 

Published in The Rising Nepal daily on 26 June 2022.  

Govt to announce startup support policy soon

Kathmandu, June 25

Minister for Industry, Commerce and Supplies, Dilendra Prasad Badu, has informed that the government is in the process to formulate some policies and programmes to support the startups which would be announced soon.

Speaking at CNIYEF Nepal StartUp Fest 2022 organised by the Young Entrepreneurs Forum of the Confederation of Nepalese Industries (CNI) in the Capital on Saturday, he said that the government has the responsibility to create an environment where young innovators and entrepreneurs thrive. "Success of startups will not only benefit the entrepreneurs but the entire society. You should prepare yourself to present your ideas and business at the international level," said Minister Badu, while pledging government support to the young entrepreneurs attending the event.

However, some of the government programmes to support the startups couldn't be implemented and entrepreneurs got no support from them. While the government in Nepal presented COVID-19 as an excuse for the poor progress in startup ecosystem, the challenges posed by the pandemic turned into the fertile grounds that boosted the business innovation and growth globally.

Secretary of the National Planning Commission, Kewal Prasad Bhandari, said that the government did not put any effort to facilitate and develop the new startups and businesses during the pandemic. There was a great deal of indifference on the part of the government in terms of supporting startups.

"Political leaders and bureaucracy still live with the concept that the government should run businesses and enterprises and the latter doesn't want to facilitate private sector industries. Nepal is not a country that doesn't have resources to fund or support startups but our understanding and orientation to business and development is quite poor and misleading as well," said Bhandari.

He said that the policy makers and bureaucrats have not understood the importance and intensity of the startups and need of the young entrepreneurs.

According to him, the government has discussed mobilising grant and investment to support the startups but the young entrepreneurs denied to accept the tax-payers' money in grants. "Young entrepreneurs have a high level of responsibility to the society, and integrity. I was surprised to hear that!" Bhandari stated.

No single-window in 3 decades

He also mentioned that the Foreign Investment and Technology Transfer Act was created about three decades ago but governments failed to implement the 'single-window system' envisioned by the law, yet.

"We lack knowledge, capacity and proactiveness in terms of developing startup ecosystem. Likewise, the announcement by the budget of the next year to offer some tax discount for startups is not a significant step," said Bhandari.

Swati Rungta, Managing Partner of Nepal Global Equity Fund, said that proper hedging mechanism is needed to attract more Foreign Direct Investment. Investors are apprehensive about the prospects of their businesses.

She said that private equity and venture capital is the major source for FDI in Bangladesh and India but Nepal lags behind in this initiative which has adversely impacted the startup ecosystem.

'Don't create rules for startups'

Similarly, Suman Rayamajhi Upaya, Managing Director of Upaya City Cargo, stated that transportation has always been a blue-collar job, not a white one. "We want to change this concept with the adoption of technology. We want to expand our services to the remotest parts of the country as well," he said while urging the government not to create rules for the startups and instead facilitate their path to entrepreneurship.

Likewise, Vishnu Prasad Agrawal, President of CNI, stated that innovative businesses have received more support from out of the country rather than by the government. Funding is the single largest challenge for the startups so this programme aims at creating awareness and generate funding.

NPC and MoICS had prepared a procedure to provide funding to the startups but it couldn't move ahead. A new procedure is recently formulated by the NPC, I hope it will be implemented soon and the startups will get policy and financial support, he said.

Binod Chaudhary, President Emeritus of CNI and lawmaker, said that the country has failed to create a supportive environment for startup business. According to him, the government has allocated Rs. 500 million to the NPC but a single penny was not utilised. NPC said later that the Ministry of Finance just gave them the plan not the money.

He urged the young innovators and entrepreneurs to shed off the hesitation and shyness from their mind while initiating and operating startups.

Prasanna Shrivastava, Counsellor of the Embassy of India in Kathmandu, suggested creating a mechanism to promote startups to transform business, society and the economy.

He said that India has institutionalised innovation and startups in the country by promoting young innovators and idea creators. There are multiple programmes to support and inspire the startups in the country. "There are 42 unicorns – a startup business larger than US$ 1 billion, and it aims to increase the number to 100 this year," he said.

Amun Thapa, President of CNIYEF, said that Nepal needed to redefine its introduction from the country of Sagarmatha and Lord Buddha to some great business as well. This is a campaign and it will continue in various forms in the days to come, he informed. 

Published in The Rising Nepal daily on 26 June 2022.  

Indian envoy Srivastava arrives in Kathmandu

Kathmandu, June 25

Newly appointed Indian ambassador to Nepal, Naveen Srivastava, arrived in Kathmandu on Saturday to assume his post.

The Embassy of India in Kathmandu said in a tweet that it welcomed the envoy in Nepal. Officials of the Ministry of Foreign Affairs of Nepal had also reached the Tribhuvan International Airport to welcome him. He will succeed Vinay Mohan Kwatra who is elevated to the post of the Foreign Secretary of India.

Indian government had appointed him as the envoy to Nepal in May following Prime Minister Narendra Modi's visit to Lumbini on the occasion of the Buddha Jayanti.

Before coming to assume his duties in Nepal, Srivastava was chief of East Asia Desk at the Ministry of External Affairs, India. He has served as the India's ambassador to Cambodia from 2015 to 2017 and consul general of the country to Shangahai, China from 2012 to 2015. 

Published in The Rising Nepal daily on 26 June 2022.