Potential for hydropower projects high in Nepal

Ramani KANGARAARACHCHI

There is a huge potential for investments in hydropower projects in Nepal. Nepal has an average water flow of 225 billion m3 and sixty six techno economically feasible sites for 44000 MW of power to meet national and regional needs.

Economist and former member of Nepal National Planning Commission Dr. Yuba Raj Khathiwada told a seminar titled “Window on Nepal” on opportunities for tourism and investments in Nepal held at Galadari Hotel in Colombo recently, that apart from high tax benefits, Nepal has a sound legal and regulatory environment where a survey licence up to five years is issued within 30 days, project licence 35 years within 120 days, exclusive water rights and Government land provided on lease.

Khathiwada said investors can import plants and equipment at one per cent customs duty without any import licence fee or sales tax and also hundred per cent foreign ownership is allowed and risk insurance available.

Elaborating on business environment he said that Nepal has a relatively open economy, almost free trade with India a liberal trade regime with rest of the world.

Khathiwada said registering a company in Nepal is very easy and no equity restrictions for foreign investors.

The physical property registrations are very quick and perhaps the fastest in the region, he said.

Investment opportunities are also available in the manufacturing, infrastructure and IT development, construction, agriculture, textile, tourism sectors and other services such as education, health, banking, and consultancy.

The seminar was organised in association with the Embassy of Nepal and the Sri Lanka - Nepal Friendship Society.