Industry, Trade, and Investment Promotion Budget 2082/83
Increasing Contribution of Industrial Sector to National Economy
Efforts will be made to increase the contribution of industrial production and productivity to the national economy. Industrialization will be accelerated through policy stability, investment security, and maintaining sound industrial relations.
Reforms to Promote Private Investment and Employment
High priority will be given to legal, policy, and procedural reforms to improve the business environment, promote private investment, and generate employment. Branding of products and services produced by small, cottage, and medium-sized industries will be supported.
Promotion of Innovation-Based Startups
Startup entrepreneurship based on innovation will be promoted to increase the number of job creators among youth. Incubation centers will be operated in collaboration with government, universities, and the private sector to develop entrepreneurial and business skills in Gen-Z youth. A concessional loan program for startups will be expanded, with NPR 730 million allocated at an interest rate of 3%.
Bhagat Sarvajit Entrepreneurship Development Program
To preserve the traditional skills, arts, and occupations of the Dalit community while creating employment and income opportunities, the "Bhagat Sarvajit Entrepreneurship Development Program" will be implemented. NPR 500 million has been allocated for capital grants, concessional loans, and skill development training to support production and marketing of goods made from gold, silver, bronze, copper, iron, leather, wood, stone, and more using modern technology.
Facilities for Gold and Silver Jewelry Export Industries
Export-oriented gold and silver jewelry industries will be provided bonded warehouse facilities. Industries receiving at least 50% of the export value as advance foreign currency payment will be allowed to purchase gold and silver equivalent to that amount.
Simplification of Industrial Public Services
Public services related to industries and businesses will be made simple, convenient, and technology-friendly. A single-window system will be implemented to handle all company-related processes from registration to closure.
Incentives in Special and Industrial Zones
Industries receiving approval to establish in Special Economic Zones and industrial areas will be provided rent exemptions for the first three years. The monthly rental rate in Special Economic Zones will be reduced from NPR 20 to NPR 5 per square meter. Industries in industrial zones that export more than 30% of their production will receive similar benefits as those in Special Economic Zones.
Hydropower-Level Benefits to Industrial Developers
Companies involved in constructing industrial areas will receive the same benefits as hydropower producers. Industries established in such areas will be granted the same facilities as industries in Special Economic Zones. A 50% reduction in monthly rent will be applied, with NPR 1.55 billion allocated for industrial infrastructure development.
Relocation of Industries from Kathmandu Valley
Industries currently operating within the Kathmandu Valley will be encouraged to relocate to industrial areas outside the valley to reduce pollution. Such industries will be provided land on lease free of cost.
Land Ceiling Laws to Be Reviewed
Laws related to land acquisition and ceiling will be reviewed. Arrangements will be made to allow purchase of land beyond the ceiling for industrial enterprises, agricultural farms, and housing apartments. Apartments constructed with legal approval but unsold due to ceiling restrictions will be permitted for sale.
Attracting Foreign Direct Investment (FDI)
Nepal will be developed as a preferred destination for foreign direct investment. Agreements for investment promotion and double taxation avoidance will be signed with potential countries. The process of bringing in foreign investment and repatriating profits will be simplified. Anchor investment policies will be adopted to attract FDI in national priority sectors.
Strengthening Public-Private Partnership (PPP)
Legal reforms will be undertaken to strengthen public-private partnerships. An automated single-window service center will be established under the Investment Board. Viability gap funding will be arranged to attract investment in prioritized projects.
Expanding PPP at All Levels of Government
The Investment Board will be empowered to manage resources, select projects, and implement them in coordination with federal, provincial, and local governments under the PPP framework. A dedicated Public-Private Partnership Directorate will be established under the Board.
Legal Provision for Foreign Offices and Apartments
Foreign investors, multinational companies, international institutions, and their branches investing in Nepal will be legally allowed to lease buildings or apartments for office or residential purposes.
Institutional Capacity Building of Investment Board
The institutional capacity of the Investment Board will be enhanced. In FY 2082/83, project development agreements worth NPR 700 billion and project constructions worth NPR 400 billion will be initiated with the private sector. NPR 740 million is allocated for the Investment Board.
Overseas Investment by Nepali Companies
Nepali businesses or companies will be allowed to open sales branches or establish processing factories abroad by exporting semi-processed materials. A legal arrangement will allow up to 25% of the annual export income to be invested abroad. 50% of the profit earned from such business must be repatriated to Nepal. The Investment Board will be responsible for approval of such investments.
Legal Provision for Sweat Equity
Nepali citizens providing technology or specialized knowledge/services to foreign companies will be legally entitled to receive sweat equity shares.
Development of Industrial Parks and SEZs
The construction, operation, and management of the industrial park in Damak, Jhapa will be carried out through public-private partnership under the Investment Board. Modern industrial zones will be developed in Daiji (Kanchanpur), Naubasta (Banke), Laxmipur (Dang), Motipur (Rupandehi), Shaktikhor (Chitwan), and Mayurdhap (Makwanpur) with private sector involvement. The Special Economic Zones in Panauti and Simara will be operated with private sector participation.
Export Strategy Based on Competitive Advantage
An export strategy targeting goods with comparative and competitive advantages will be adopted. Priority will be given to trade infrastructure development and technology transfer. The "Make in Nepal" and "Made in Nepal" campaigns will be implemented in collaboration with the private sector.
Development of Dry Ports and Checkpoints
The integrated check post in Bhairahawa and the dry port in Timure, Rasuwa will be completed and brought into operation. Construction of a dry port in Dodhara-Chandani, Kanchanpur will be advanced.
Inventory and Exploration of Mineral Resources
An inventory will be prepared for minerals such as petroleum, copper, iron, magnesium, phosphorite, quartz, and precious stones identified through geological studies. Based on sample test reports, commercial production of petroleum in Dailekh will be initiated. Exploration will begin in Palpa, Sunsari, and Dang. International researchers will be selected to study the feasibility of rare earth metals.
International Conference on Mining
An international conference involving mining experts will be held in FY 2082/83 to confirm the potential for exploration, production, and marketing of mineral resources in Nepal. The private sector will be engaged in the commercial production and marketing of natural and mineral resources. Materials with economic and environmental feasibility will be extracted, processed, and used domestically or exported.
Establishing International Quality Standards
Export standards will be aligned with international norms and mutual recognition will be established with destination countries. The process of standard setting and certification for products produced in Nepal will be made systematic and high-quality. Legal reforms will be made in intellectual property protection.
Facilitating Working Capital Loans
Efforts will be made to facilitate easy and accessible working capital loans for companies involved in production, tourism, construction, and housing development.
Ensuring Essential Supplies
Food and salt supply will be ensured in remote and hilly regions. Storage capacity for fuel will be expanded to ensure smooth supply. Bioethanol blending will be implemented to reduce fuel import and control pollution. Expansion of the Amlekhgunj-Lothar petroleum pipeline and construction of storage facilities will proceed. Construction of the Silgadhi-Charaali cross-border petroleum pipeline and storage facility will begin.
Market Regulation and Consumer Rights
Malpractices such as black-marketing, monopolies, cartels, and artificial shortages will be controlled to create a clean, competitive, and consumer-friendly market. Consumer courts will be expanded to all provinces.
Total Budget Allocation for MoICS
A total of NPR 10.14 billion has been allocated to the Ministry of Industry, Commerce, and Supplies.
