Govt permits FDI in Upper Rahughat hydro project

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    KATHMANDU, Nov 15:

    FDI_FlyThe Industrial Promotion Board (IPB) on Friday decided to permit the Tudi Power Company – the developer of Upper Rahughat Hydropower Project – to bring foreign direct Investment (FDI) worth Rs 4.08 billion to develop the project.

    The board meeting of IBP chaired by the Minister for Industry Shankar Prasad Koirala took the decision to this effect.

    The decision has paved the way for Sichuan Gig Antai Energy Corporation of China to acquire 40.8 million units of shares worth Rs 4.08 billion in the project.
    The Myagdi-based hydropower project will have installed capacity of 48.5 MW.

    According to officials of the Department of Industry (DoI), two Nepali firms have invested Rs 1.02 billion in the project. Tudi Power Company and Himalayan Infrastructure Fund each have 5.1 million units of shares in the company.

    Meanwhile, the board also has decided to delegate some power to the Department of Industry (DoI) to look into issues related to transfer of technology by foreign investors in Nepal. “Now we will decide on FDI investment for technology transfers in Nepalis industries after the board permits in accumulated amounts,” Dhruba Lal Rajbanshi, Director General of DoI, said. “The decision has relieved us, as we no more need to go to the board for minor decision on the case of foreign investment in technology transfer.”
    The law in general only permits DoI to decide on FDI of up to Rs 2 billion only.

    Likewise, the IBP has also decided to allow the DoI to work for bringing foreign investment for technology transfer in an industry fully promoted by Nepalis.
    However, the DoI must take suggestions from a committee comprising the representatives of Nepal Rastra Bank, Inland Revenue Department and Department of Labor on the issues related to FDI in technology transfer.

    The Board also has decided to extend deadline of a committee tasked with the responsibility of suggesting a new standard for liquor industries. Now, the committee will have to submit its suggestions by mid-January 2014.

    The committee is led by Rishi Koirala, joint secretary at the Ministry of Industry.

    Source : Republica