The Hindu Business Line : Nepal PM outlines steps to attract Indian business

Wooing Indian biz: The Nepal Prime Minister, Mr Madhav Kumar Nepal, flanked by Mr G. Subba Rao (right), President, Hydro Business, GMR Group, and Mr Subodh Hargava, Chairman, Tata Communications, at a meeting with the Indian businessmen, in the Capital on Wednesday.

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New Delhi, Aug. 19 Nepal will shortly unveil plans to protect foreign investments with 100 per cent profit repatriation without any taxation, said Mr Madhav Kumar Nepal, the Prime Minister of Nepal. He added that Indian industry could thus shed its fears and park its surpluses in Nepal.

Mr Kumar Nepal was addressing industry representatives at a joint meeting organised by Assocham, CII and FICCI.

He said that Nepal offered Indian industry huge opportunities for investment. “The significant areas for investment include hydropower, tourism and services such as banking and finance, besides roads, ports, civil aviation and transportation,” he said.

The Nepalese premier added that in areas such as light engineering, manufacturing and information technology, Nepal assured Indian business abundant opportunities, either in the form of 100 per cent subsidiaries or joint ventures with Nepalese industry.

On the law and order situation in the country, he said the situation was returning to normal and the Government would shortly unveil its security plans in consultation with the other political parties. This plan would protect investment and also ensure that manufacturing happens without any interruption.

He also said that India and Nepal would strive to avoid double taxation and remove the barriers in the way of trade.

Speaking on the occasion, Mr Dilip Modi, Vice-President, Assocham, said the two-way trade between India and Nepal has steadily grown in the last 10 years and both countries should revise their trade treaties so that business can be done in a smooth and effective manner.

Mr Subodh Bhargava, past-president, CII, added that although many barriers had been removed to facilitate trade between the two countries, a lot more was needed to realise the trade potential.

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