Nepal receives FDI commitments worth around Rs 20 billion

KATHMANDU, NOVEMBER 18: In the first four months of the current fiscal year 2024/25, foreign direct investment (FDI) commitments totalling Rs. 19.8 billion have been received. According to data from the Department of Industry, this amount corresponds to commitments for 291 different projects. Specifically, in the month of Kartik (mid-October to mid-November) alone, commitments worth Rs. 2.24 billion were secured for 63 projects.

The department's figures reveal that Rs. 1.62 billion has been pledged for 109 projects out of the total commitments made in the first four months. A provision allows foreign investment of up to Rs. 500 million to be approved via the automatic route. Through this route, Rs. 613.7 million was committed in Kartik alone for 36 projects.

Additionally, the FDI commitments amounting to Rs. 17.03 billion have been secured for 153 projects through the standard, paper-based approval process. The department reported that in Kartik, commitments of Rs. 1.61 billion were made for 23 projects. Furthermore, share purchase and sale agreements totalling Rs. 1.13 billion have been pledged across 25 different projects. The data also shows that technology transfer agreements have been finalized for 13 projects. During this period, commitments were made to create 7,667 jobs.

The review period saw investment commitments for 151 small projects, two large projects, and one medium-sized project, according to the statistics.

During the first four months of the current fiscal year, foreign investors repatriated Rs. 64 million in dividends. Comparatively, during the same period in the previous fiscal year, dividends totalling Rs. 1.41 billion were repatriated.

Service fees amounting to Rs. 380.8 million have also been paid. Additionally, payments of INR 2.868 million, USD 5.76 million, and INR 200.5 million have been processed.

In the month of Kartik, the productive sector saw commitments of Rs. 355 million for six projects. The tourism sector received Rs. 420 million in commitments for 13 projects. Additionally, the service sector secured Rs. 380 million for eight projects, the infrastructure sector received Rs. 40 million for two projects, and the information technology sector garnered Rs. 430 million in commitments for 80 projects.