Foreign investment inflow impressive

Post report

KATHMANDU, March 9 - Despite the abrading investment environment due mainly to deteriorating law and order situation along with the plunging flow of global Foreign Direct Investment (FDI), the Nepalese economy, during the first eight months of the current fiscal year, witnessed an impressive growth in the foreign investment inflow.

During the period, the Department of Industry approved 58 new foreign investment proposals. It had approved only 36 such proposals during the corresponding period last year. The total project cost, total fixed investment and total foreign investment of the proposed projects are Rs 4.08 billion, Rs 3.5 billion and Rs 1.3 billion respectively. These new projects are expected to create jobs for additional 3,400 people.

Of 36 total foreign investment projects approved by the Department during the first eight months last year, the total projects cost and total fixed investment were Rs 1.45 billion and Rs 1.08 billion respectively. Similarly, the total foreign investment of the projects was 1.02 billion and altogether these projects had employed extra 2,184 people.

Ever since Nepal opted for liberal economic policy and opened its door for the foreign investment, with adequate policy level reforms in the beginning of the 90s with an aim to minimise the scarcity of capital and relevant technology, major inputs for industrial development, altogether 39 countries have invested in 649 projects. The total project cost, fixed investment and foreign investment of the projects are Rs 71.23 billion, Rs 61.45 billion and Rs 17.34 billion respectively. These investments have contributed to generate extra 81,536 employment opportunities.

Of the countries investing in Nepal in the post-reform period, India continued to remain a dominant foreign investor followed by Japan and the USA.

Altogether 223 Indian investments have come to Nepal with Rs 24.9 billion as total project cost, Rs 20.4 billion as fixed investment and Rs 5.96 billion as foreign investment. These total projects have employed 33,156 people.

Similarly, country-wise Japan, the second largest foreign investor, has invested in 70 various projects so far. The total project cost, fixed investment and foreign investment of these projects are Rs 2.67 billion, Rs 2.3 billion and Rs 835 million respectively. Japanese investment has contributed to generate 4,610 jobs nation-wide.

The USA, the third largest foreign investor of Nepal with total 68 projects has, so far, invested Rs 10.9 billion as the total project cost, Rs 10 billion as fixed investment and Rs 3 billion as foreign investment.

Of the total foreign investment projects, which, so far, have received necessary government permission and 239 projects are operating. Similarly, 50 projects are under construction and 144 projects have been granted permission but they are yet to start construction and production. Likewise, 17 industries with foreign investment have been closed and 46 licenses given to commence projects have been cancelled due to various reasons. Altogether 7,183 jobs were lost due to the closure and cancellation of 63 industries during the entire post-liberal era.

Police beef up consignment inspection of imported goods

Post Report

BIRGUNJ, March 9 - Police have beefed up consignment inspection of imported goods from India from Sunday, following the forceful release of impounded consignment from Revenue Investigation Department (RID), Pathlaiya Unit on Saturday.

A police team from Bara and Parsa districts had seized two loaded trucks on Wednesday and Friday and forwarded them to Birgunj Customs Office and Revenue Department.

A group of people led by a local businessman had gheraoed and exerted pressure on Tej Raj Shakya, Chief of the RID and forcefully taken away the confiscated loaded truck on Saturday.

According to Parmeshwor Sijapati, superintendent of police, Bara, the police apprehended a loaded truck belonging to Pashupati Transport which was carrying goods evading customs duty on Wednesday night and took it under their control. The loaded truck has been forwarded to the Revenue Department.

Similarly, police have also seized a loaded truck of Shanti Transport, owned by Rajnish Gupta, who had gheraoed and verbally abused the Revenue Department Chief to get his consignment released on Saturday, and have forwarded it to the Revenue Department Pathlaiya on Friday.

Actually the police had taken the truck under their control on Thursday night but as the driver of the truck had managed to flee they could not bring the truck to the Revenue Department. Meanwhile, the owner of the truck got someone to remove one of its tyres so it could not be dragged to the Department. But the police some how managed a driver next day and brought the truck to the department, according to Superintendent of Police Arjun Bahadur Jung Shahi.

Talking to The Kathmandu Post, SP Shahi said that the confiscation of the truck was not a case of retaliation but a detention carried out on proper information received by them. He also said that the informer would be rewarded and his name kept secret.

Meanwhile, the Department of Value Added Tax (VAT) raided Rajnish Trade Concern and Sheep Enterprises, both the firms registered in the name of Rajnish Gupta last week and confiscated all documents found at the premises.

In a view to curtail such malpractice, the government has decided to mobilize army at five customs checkpoints from 14 March 2001.