Russia ready to invest in Nepal

KATHMANDU. OCT 3, 2012

Nepal has failed to tap Russian investors, according to former president of Non-Resident Nepali Association (NRNA) Upendra Mahato.

Nepal can benefit more as Russian investors could bring in huge investments, Mahato said, while addressing Russian and Nepali business people in Kathmandu today.

“Russians have no political interest in the country, except for the security of their investments and profits, which any investor seeks while doing business,” said Mahato, adding that if the government here can assure security to their investments, then that will definitely help attract Russian investment in the country.

If Nepal can propose bigger projects, then Russian investors will be interested to bring their investment to the country, the former president of Non-Resident Nepali Association opined. “Though there have been talks with Russian investors in the past, they are looking for more concrete projects to invest in.”

Addressing the visiting Russian business delegation led by deputy director of the International Cooperation Department of the Russian Federation’s Chamber of Commerce and Industry Tatiana V Legchilina, industry minister Anil Jha assured them of security to their investment.

“Despite political instability, investment is a primary concern that is key to peace and prosperity,” he said, assuring the business fraternity of investment facilitation.

Similarly, vice president of Nepal-Russia Chambers of Commerce Naresh Shrestha said that Nepal still provides scope for investment though there are challenges. “After Russian airlines, Aeroflot, stopped its flights to Kathmandu, the flow of Russian tourists has slowed down,” he said, urging it to start flights again.

Russian ambassador to Nepal Sergey V Velichkin was of the view that Russian investment in India and China has been increasing and Nepal — that is placed between the two big markets — should also take advantage and attract more Russian investment.

“International trade is all about shaping destinies of the world,” Mahato said, adding that trade between the two countries must be attached with value and moral.

“Nepal and Russia both believe in trade with value, but the understanding of the opportunities that Russia can offer is very poor in Nepal despite many commonalities.”

Source: THT

Nepal investment climate improving

The investment climate in Nepal has been improving ‘technically’, according to the British ambassador to Nepal.

“Now, Nepal has to think about how to attract investments as the investment climate is technically improving,” said British ambassador to Nepal John Tucknott, while addressing a team of British and American investors here today.

The 10-year insurgency has deeply affected the economy and the country could not see any large scale investment during the period, he said, adding that with the change in the political environment in recent months, a lot of foreign investors have shown an interest in investing in the country.

As we finally see the end of the road, it’s time to grow together into a new Nepal that provides opportunities to all, said the ambassador. “Nepal can create lots of jobs and young people do not have to go overseas to send money back.”

Apart from foreign investors, new investments from the current investors are also key, said the envoy hailing the establishment of the Investment Board.

“The conditions and regulations should be eased to encourage them.”

A team of five investors from Britain and the US are currently in Nepal to take stock of the investment climate here. The visitors also hailed the recent change in the political climate and said there is a lot of potential in Nepal.

Briefing the visitors on the current moves of the Investment Board aimed at attracting investment, chief executive of the board Radhesh Pant said that the board will provide a one-window solution to investors.

“It is streamlining the Acts to produce an investment friendly environment,” Pant said, adding that the Investment Board is also working on the framework for incentives, and doing a comparative analysis of neighbouring countries to offer investors a competitive package.

The Investment Board has prioritised seven sectors and is packaging 50 projects to offer to foreign investors.

Source: THT

Nepal eyes DTAA with US, Japan, Russia

KATHMANDU, March 17, 2012

Ministry of Finance (MoF) has initiated steps to sign Double Taxation Avoidance Agreement (DTAA) with three major countries in a bid to lure investors by assuring them that they will not be required to pay taxes in their country if they pay it in Nepal.

“We have already entrusted concerned officials to come up with drafts of the DTAA within a month,” said Finance Secretary Krishna Hari Baskota. Once those are developed, he said the government will formally exchange them with the United States, Japan and Russia and start negotiations to give them final shape for signing.

The initiative is part of government efforts to create better investment environment and bilateral friendly tax regime.

DTAA is considered crucial to gain the confidence of foreign investors as it allows investors with businesses in Nepal to obtain tax credit in their country for tax they have paid here.

Japanese business delegating visiting Nepal in the past have suggested the Nepali private sector to convince the government to sign the DTAA if they wanted to lure more Japanese investment partners in Nepal. In the absence of such an agreement, they say interested Japanese investors were not putting in their money in Nepal, as they would have to pay taxes both in Nepal and Japan.

Similar demand had come from a delegation of the US investors, who visited Nepal last year.

“It is considering their demands that we have decided to move ahead with the DTAA with the US, Japan as well as Russia in the first phase,” said Baskota.

The initiative is in line with the Immediate Action Plan (IAP) for Economic Growth and Prosperity that Prime Minister Baburam Bhattarai announced in January this year. In the IAP, he said the government will sign DTAA along with Bilateral Investment Promotion and Protection Agreement (BIPPA) with China, SAARC countries and 5 other developed nations by the end of this fiscal year.

The PM had drawn up the plan in view of the Investment Year, when he said the government is hoping to bring in US$ 1 billion from the overseas investors. To realize the plan, the government has assigned the Investment Board to develop 50 bankable investment projects in areas such as infrastructure, hydropower, tourism and agriculture, so that it could be offered to foreign investors.

As clear identification of projects will not be enough, the government is hopeful that signing of DTAA and BIPA with potential investment generating countries will create further attractions for investors to put their money in Nepal.

Source: Republica