KATHMANDU, March 28: Finance Minister Janardan Sharma has said that it is necessary to raise investment in big projects. Speaking at a Memorandum of Understanding (MoU) signing ceremony between Investment Board Nepal and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on cooperation in raising domestic capital and attracting foreign investment on Sunday, he suggested the officials select the projects that are worthwhile.
Finance Minister Sharma, who is also the vice-chairman of the Investment Board, said that the structure, act, law and working practices of the board should be amended to improve the trend of not investing properly despite the investment commitment.
Stating that there is enough money in the country to raise capital for big projects, he said that projects that win the trust of the people should be chosen. "At present, we can see that if a company goes for an initial public offering (IPO), it seems that there are more applications than demand. This means that Nepali people have money but they are not able to invest it in suitable projects that would provide them good return,” Minister Sharma said. “Therefore, pay attention to the selection of credible projects as the Nepali people can help to raise capital for such projects.”
He said that the main reason for the influx of domestic and foreign investment in the hydropower project was the guarantee of return. "If we choose a project capable of repaying the loan ourselves, the project will repay the loan and the people will not be burdened unnecessarily. Therefore, special attention should be paid to the selection of such projects,” Minister Sharma said.
The agreement was signed by Chief Executive Officer of the Investment Board Nepal Sushil Bhatt and FNCCI President Shekhar Golchha in the presence of Finance Minister Sharma on Sunday morning.