56 FDI projects worth Rs. 2.1bn approved in one month

By A Staff Reporter,Kathmandu, Dec. 18: The Department of Industry (DoI) has approved 56 projects under the Foreign Direct Investment (FDI) in the month of Mangsir (mid-November to mid-December 2024) with the commitment of Rs. 2.11 billion. 

Of these projects, 29 (worth Rs. 502 million) were approved through the automated route while 27 (of Rs. 1.60 billion) were approved through the approval route, informed the Foreign Investment and Technology Transfer Section of the DoI in its report published on Tuesday. 

Likewise, the Department also approved two share purchase agreements/share subscription agreements (SPAs/SSAs) and nine technology transfer agreements (TTAs). These projects have potential to create as many as 1,363 jobs. 

According to the DoI, the number of projects approved in the first five months of the current fiscal year 2024/25 is 319 while there are also 27 SPA/SSAs and 22 TTAs with the potential of creating more than 9,200 jobs. 

Total committed investment in this fiscal year has reached Rs. 20.77 billion. About 138 of them were approved through the automated route. The government has established an automated route and one-stop service centre at the DoI with the aim of facilitating foreign and large investors.

The Department informed that of the registered industries, tourism tops the list with 145 projects followed by the Information and Communication Technology at 106. Tourism-related businesses have commitment of Rs. 12.7 billion investment. Likewise, 40 are in the service sector, 22 in manufacturing and five in agriculture and forestry. Only one project is approved in infrastructure sector. 

Similarly, service-sector industries have made the commitment of Rs. 4.8 billion investment, manufacturing Rs. 1.81 billion and ICT sector businesses Rs. 678 million. In the past five months, Rs. 851.6 million has been repatriated from Nepal to other countries in the name of royalty and dividend. The royalty is repatriated in Nepali currency, Indian rupees and US dollars. 

According to the DoI statistics, the number of total FDI-based industries in Nepal has reached 6718 with the investment commitment of Rs. 540.53 billion and job creation for 337,514 individuals.