5 billion 19 million foreign investments were received in seven months of the last financial year
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From July to January of the current financial year, foreign investment (FDI) commitments of Rs. 26 billion 84 crores have come in. Compared to the same period last year, foreign investment has increased this year. In seven months of the last financial year, 22.68 billion rupees were committed and 5.19 billion rupees were received.
According to the Department of Industries, more foreign investment commitments have come from the approval route than the automatic route. According to the data of the department, 2 billion 62 billion 82 million rupees have been committed in 175 industries through the automatic route and 24 billion 21 billion 34 million rupees in 211 industries through the approval route.
Last May, from the third investment conference, the department implemented the system of foreign investment approval through automatic route. The foreign investment approval letter can be obtained as soon as the application is submitted by email and the company can be registered based on this system. According to the department, domestic and foreign investment can be made through this route in industries with a total capital of up to 50 million rupees. The minimum limit is not applicable in the information technology based industry.
According to Nepal Rastra Bank data, despite the increase in foreign investment commitment, the inflow amount is low. Stakeholders say that there is no policy arrangement that all the foreign investments that have been committed come or should come in the same period. According to Nepal Rastra Bank, only 5.96 billion 1.3 million rupees came in from FDI in Nepal last financial year.
In that period, a total of 7 billion 768.6 million foreign investments came in, but old investments equal to 1.8073 million rupees were withdrawn. In the financial year 078/79, foreign investment commitments of 54 billion 15 crore rupees were received in 295 industries.
When the government approves foreign investment, the stakeholders also say that they allow investors to bring in investment in stages (in installments). Government officials say that the commitment and approved amount will not be received at once.
