Date:11/09/2004 URL: http://www.thehindubusinessline.com/2004/09/11/stories/2004091102640400.htm

Back Nepalese PM assures security to investors

Our Bureau

The Prime Minister of Nepal, Mr Sher Bahadur Deuba, flanked by Mr Saroj Kumar Poddar, Vice-President, FICCI (left), and Dr Gurpreet Singh, Past President, CII, at a meeting with businessmen in the Capital on Friday. — Kamal Narang

New Delhi , Sept. 10

THE Prime Minister of Nepal, Mr Sher Bahadur Deuba, said that his Government was fully committed to providing security and protection to investors and their investments.

"We are fighting the problem of insurgency resolutely and responsibly. We will not allow the terror to reign and the liberal investment environment will be protected at any cost," Mr Deuba said.

Speaking at an event jointly organised by CII and FICCI on Friday, the Nepalese Prime Minister called upon the business communities of both the nations to play a more meaningful role.

He urged the industry to forge closer partnership to meet the emerging challenges and realities of the two economies.

"It is time to seriously ponder how best the relations of partnership can be expanded and consolidated to enrich the content and meaning of our relationship."

Calling for more Indian investments, he said that Nepal has in place the necessary legal, institutional and policy framework to encourage trade and attract investment.

"The system is fully geared to facilitate the private sector to play its enhanced role in the economic growth and development of the country. We have made considerable efforts to develop the private sector and accept it as a leading partner in economic development."

Outlining broad areas in which the business communities of the two countries could forge partnerships, he said that Nepal offered an ideal potential for investment, particularly in infrastructure development.

There was immense potential for investment in the development of hydroelectricity in Nepal.

"Hydropower generation is perhaps the most important area where we need a sustained flow of investment and the Indian private sector could play a pivotal role in this area."

He also identified agro-based products, food processing, tourism and manufacturing of light engineering products as some other areas where Indian investment could prove productive and beneficial.

"With Nepal joining the WTO, we hope to benefit from the multilateral rule-based trading regime with a reasonable degree of stability and continuity of our economic policies."