Private sector enters life insurance business

Post Report

KATHMANDU, Nov 28 - Life Insurance Corporation (LIC), a state-owned Indian company and Bishal Group Limited (BGL) of Nepal have jointly agreed today in black and white to operate life insurance services in the country.

To this effect, a memorandum of understanding was signed by Ashok Agrawal, Chairman of Bishal Group Limited and G N Bajpai, Chairman of LIC in the presence of P K Banerjee, Special Secretary (External Finance and Insurance) Government of India, Dev Mukharji, Ambassador of India to Nepal and a gathering of journalists.

The new company, Life Insurance Corporation (Nepal) Ltd, to be set up by both promoters will have an authorized and paid-up capital of Rs 250 million to be subscribed in the ratio of 55 percent, 25 percent and 20 percent by the LIC, VGL and Nepalese public, respectively.

Speaking at the MoU signing ceremony, Ashok Agrawal, Chairman of BGL terming the agreement as historic said, "As LIC is a world renowned insurance company, to join hands with such a company to operate life insurance service in Nepal is a golden opportunity in a liberalized world which will help to promote the national economy."

P K Banerjee, Special Secretary (External Finance and Insurance), Government of India said that the agreement to operate such a life insurance service is not only an alliance but a partnership between the two countries.

G N Bajpai, Chairman of LIC speaking at the function said LIC has 2048 branches across the world, and urged that to operate life insurance services, there should be a strong company. Bajpai said that LIC has been able to record its income at NRs 72278.64 crores during the fiscal year 1999/2000, a 23.50 percent increase over the previous year.

With such strong financial backing, LIC has helped tremendously in boosting industrial growth in India, adding Bajpai said, LIC has been providing loans for setting up co-operative industrial estates and helping to develop small and medium industries by different means.

Deputy Chief of Mission at the Indian Embassy, Ashok Kumar, opined that with the signing of the agreement between Bishal Group of Nepal and LIC, the relations between the two countries has reached a further new milestone. With this initiative, the potential for joint venture projects between Nepal and India has increased, Ashok Kumar said. He termed the alliance as a good sign for both the countries for further joint investment opportunities.

Vishal Group’s business ranges products from iron and steel to dry cell batteries, toothpaste, toothbrushes, mosquito mats, plastic shopping bags, garments, among others.

FNCCI briefs UNDP official on MEDEP

Post Report

KATHMANDU, Nov 28 - Acting President of Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Ravi Bhakta Shrestha, met with Richard Huntington, Leader of the UNDP delegation, which is currently in capital for mid-term evaluation of Micro Enterprises Development Program (MEDEP).

According a press released received here today, they have discussed problem and propects of MEDEP, which is being conducted in various parts of the nation under the joint cooperation of Ministry of Industry, Commerce and Supplies and the United Nation Development Program and exchanged views on possible mutual cooperation.

Acting President Shrestha informed that the federation is engaged in promoting interests of industrialists and businessmen to strengthen institutional development.

He also informed that FNCCI is cooperating in expantion of the rural micro credit programs.

On the occasion, Rajendra Bahadur Pradhan, President of Small and Cottage Development Committee of FNCCI explained about the coordinating role the committee is playing through its district offices to address common problems of the small and cottage industries.