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NEPAL - FOREIGN INVESTMENT OPPORTUNITIES

Welcome to Foreign Investment Promotion Division Home Page

LIST OF PROJECTS

A. AGRICULTURE & AGRO-BASED INDUSTRY

  1. Cultivation of vegetables - tomato, egg plant, brocolli, cabbage lettuce, okra, sweet-pepper, carrot, green-chilies, cauli-flower, snow-peas, french beans.
    Markets in Middel East, Hongkong, Singapore, Japan.

  2. Cultivation and processing of vegetables.
    Export Markets.

  3. Cultivation of Mushroom
    Exports-fresh, dried & tinned.

  4. Cultivation of flowers - roses, carnations, orchids, Chrysanthemus
    Export to Middle East, Singapore, Hongkong, Japan.

  5. Ornamental plants
    Export markets.

  6. Cultivation of fruits - grapes, apricots, peaches, mango, avacado, lychee, orange.
    Export in fresh form

  7. Cultivation and processing of fruits - dried mango, apple, jams, jellies, squash
    Export markets.

  8. Production of flowering seeds
    Export markets in Europe, USA, Japan.

  9. Production of vegetable seeds
    Export to South & South East Asian markets.

  10. Cultivation and processing of herbs.
    Exports and domestic markets.

  11. Cultivation & processing of soya
    Export and domestic markets.

  12. Development of tea industry
    Domestic and export markets.

  13. Cultivation of sugarcane and processing sugar
    Domestic market.

  14. Cultivation and processing, fresh & dried ginger
    Export markets.

  15. Cultivation and processing of garlic.
    Export markets.

  16. Integrated livestock industry
    Domestic market.

  17. Integrated dairy development
    Domestic market.

  18. Production of skimmed milk
    Domestic market.

  19. Baby food and nutritious food
    Domestic market.

  20. Animal feed.
    Domestic market.

  21. Poultry foundation stock with hatchery and feed mill
    Domestic market.

  22. Acquaculture
    Domestic market.

  23. Tomato processing
    Export markets.

  24. Oil seed processing and oil extraction
    Domestic market.

B. TEXTILE & WEARING APPAREL INDUSTRY -

  1. Integrated textile mill
    Domestic market.

  2. Textile processing-dyeing & finishing
    Domestic market.

  3. Woolen Knitwear and Export markets.
    Domestic market.

  4. Manufacture of acrylic & polyester
    Domestic market.

  5. Manufacture of dhoti and saree
    Domestic market.

  6. Terry towels
    Export market.

  7. Bed linen
    Export & Domestic markets.

  8. Readymade garments
    Export markets.

  9. Spinning mill
    Domestic market.

  10. Grey cloth
    Export & Domestic markets.

  11. Leather shoes
    Export & Domestic markets.

  12. Canvas shoes
    Export & Domestic markets.

  13. Sericulture and silk production
    Export markets.

  14. Partially oriented yarn
    Domestic market.

  15. Hand knitted sweaters
    Export & Domestic markets.

C. MANUFACTURING INDUSTRY -

  1. Light engineering industries
    Domestic market.

  2. Electric arc furnance
    Domestic market.

  3. Leather products
    Domestic and export markets.

  4. Pharmaceutical products
    Domestic market.

  5. Ceramics
    Domestic market.

  6. Writing, printing and new sprint paper
    Domestic market.

  7. Organic fertilizer
    Domestic market.

  8. Saline & dextrose
    Domestic market.

  9. Surgical cotton & bandaging industry
    Domestic market.

  10. Chemical fertilizers
    Domestic market.

  11. Pesticides, insecticides
    Domestic market.

  12. Industrial chemicals
    Domestic market.

  13. Glass bottles, containers
    Domestic market.

  14. Domestic electrical appliances
    Domestic market.

  15. Electric power capacitors & codensers
    Domestic market.

  16. Irrigation pumps
    Domestic market.

  17. Manufacture of bicycles
    Domestic market.

  18. Bleaching powder
    Domestic market.

  19. Agricultural lime
    Domestic market.

  20. Manufacture of chalk
    Domestic market.

  21. Manufacture of yeast
    Domestic market.

  22. Production of malt
    Domestic & export markets.

  23. Assembly of electronic components
    Export markets.

  24. Manufacture of dry cell battery
    Domestic market.

  25. Manufacture of starch glucose and fructose sysrup
    Domestic market.

  26. Cane furniture indyustry
    Export markets.

  27. Speciality paper
    Domestic market.

  28. Video cassette industry
    Domestic market.

  29. Cold rolling mill
    Domestic market.

  30. Aluminium rolling mill
    Domestic market.

  31. Toilet and laundry soap
    Domestic market.

  32. Caustic soda
    Domestic market.

  33. Mineral water bottling plant
    Export markets.

  34. Sugar industry
    Domestic market.

  35. Essential oils and resinoids
    Domestic and export markets.

  36. Hand tools
    Domestic market.

  37. Professional and occupational tools and instruments.
    Domestic market.

  38. Medical instruments and tools
    Domestic market.

  39. Industries manufacturing fuel conserving instrument.
    Domestic market.

  40. Pollution preventing accessory industries
    Domestic market.

D. CONSTRUCTION INDUSTRY

  1. Builders hardware
    Domestic market.

  2. Stone industry-cutting & polishing
    Domestic market.

  3. Stone-aggregates
    Export and domestic markets.

  4. Bricks (dry press)
    Domestic market.

  5. Plywood
    Domestic market.

  6. Cement-large plants
    Domestic market.

  7. Cement-mini plants
    Domestic market.

  8. Floor and wall tiles
    Domestic export markets.

  9. Hand tools
    Domestic market.

  10. Parquet flooring
    Domestic market.

  11. Housing and apartment buildings
    Domestic market.

  12. Varnishes, paints & allied products
    Domestic market.

  13. PVC pipes & allied products
    Domestic market.

  14. Luminium extrusions
    Domestic market.

  15. PVC doors/windows
    Domestic market.

  16. Slate, granite and cement
    Domestic market.

E. TOURIST INDUSTRY

  1. Resort areas, hotels, lodges, & motels
  2. Cable car complexes
  3. Trekking & rafting equipment
  4. Hot air ballooning and para-sailing
  5. Travel and trekking agencies

F. SERVICE INDUSTRY

  1. Engineering consultancy services
  2. Air freight forwarding services
  3. Sea freight forwarding services
  4. Nursing homes
  5. Carpet washing
  6. Domestic air services
  7. Computer software development
  8. Data entry services
  9. Photo scanning and off-set printing

G. MINERAL RESOURCES

  1. Jewellery manufacture with precious & semi-precious stones.
  2. Exploration and processing quartz
  3. Processing mica
  4. Petroleum exploration & exploitation
  5. Gas exploration & exploitation

H. ENERGY INDUSTRY

  1. Solar energy
  2. Wind energy
  3. Hydro electric plants upto 100 MW

* This is not an exhaustive list. HMG of Nepal encourages foreign investment in medium & heavy industry falling under several sectors of economic activity. The only exceptions made are in defence related industries, alcohol, cigarettes and bidi. Potential investors could propose projects outside this list which would be of interest to Nepal either as import substitution industries, export-oriented industries, or assembly industries.

INDUSTRIAL FACTOR COSTS

  1. Cost of Industrial Sites (per ropani)
    a) Kathmandu            -       Rs. 500,000     -       1,000,000
b) Outside Kathmandu    -       
        - Lalitpur      -       Rs. 300,000     -         600,000
        - Bhaktapur     -       Rs. 200,000     -         400,000
        - Hetauda       -       Rs.  75,000     -         150,000
        - Pokhara       -       Rs. 100,000     -         500,000
        - Butwal        -       Rs.  50,000     -          60,000
        - Dharan        -       Rs.  60,000     -         100,000
        - Nepalgunj     -       Rs.  75,000     -         250,000
        - Surkhet       -       Rs.  60,000     -          75,000
        - Biratnagar    -       Rs.  40,000     -          60,000
        - Birgunj       -       Rs. 120,000               160,000

                                [note Ropani = 5476 sq. ft.]


  2.  Construction Costs
    
a) Factory buildings - Rs. 300 - 500 per sq. ft.
b) Office building - Rs. 350 -600 per sq. ft.
c) Material cost:
   i)   Cement - Rs. 4,600/ mt.
   ii)  Torsteel rods - Rs. 25,000 /mt.
   iii) Bricks - Rs. 1,600 - 2,100/ 1000 pieces
   iv)  Sand - Rs. 250/cu. m.
   v)   Stone aggregates - Rs. 544/cu. m.
   vi)  Asbestos sheets - Rs. 456/sq. m.
   vii) Other roofing sheets - Rs. 425/ sq. m.


  3.  Electricity (Industrial Tariff)
    
1. High voltage (66 KV and above)
a) Demand Charge
   i.   in peak period Rs. 120/KW per month
   ii.  in other perod Rs. 72/KW unit.

b) Energy Charge
   i.   in peak period Rs. 2.35 per unit.
   ii.  in other period Rs. 1.40 per unit.

2. Medium voltage (11 KV and 33 KV)
a) Demand Charge
i.      in peak period Rs. 135/KW per month
ii.     in other period Rs. 81/KW per month
b) Energy Charge
   i.   in peak period  Rs. 2.80 per unit.
   ii.  in other period Rs. 1.70 per unit.

Note:

Peak period refers to winter months (Mid-November to Mid-Fed.) and during other months from 18:00-22:00 hrs.


  4.  Fuel:
    

a) Petrol               Rs.     25/litre
b) Diesel               Rs.     10/litre
c) Light Diesel Oil     Rs.     9.50/ litre
d) Furnace Oil          Rs.     9.00/ litre
e) LPG                  Rs.     14.33/kg.


  5.  Salaries and Wages (per month)*
    

a) Managerial grade     Rs. 6,000 - 15,000
b) Engineers            Rs. 6,000 - 12,000
c) Technical Operator   Rs. 3,000 - 6,000
d) Junior Operator      Rs. 2,000 - 3,000
e) Office Assistant     Rs. 2,500 - 3,000
f) Clerical Grade       Rs. 2,000 - 4,000
g) Labour grades
   Skilled              Rs. 2,500
   Semi skilled         Rs. 1,800
   Unskilled            Rs. 1,000
    6. * It would be appropriate to add 25 percent of above salaries to take account of social costs. 
  6.  Import Licence Fee
    

Plant & machinery       1 per cent
Raw material            1 per cent


  7.  Rents (office and residential)
    

Kathmandu-residential   -       Rs. 15,000 - 25,000 per month
ofiice                  -       Rs. 5-15 per sq. ft. per month.
Butwal office           -       Rs. 6-8 per sq. ft. per month.
Hetauda - office        -       Rs. 3-5 per sq. ft. per month.
Pokhara - office        -       Rs. 4-5 per sq. ft. per month.
Biratnagar - office     -       Rs. 4-6 per sq. ft. per month.
Birgunj - office        -       Rs. 6-8 per sq. ft. per month.


  8.  Water Rates
    

Size of taps    Exempt Units            Minimum Charge
                Litres
1/2"            10,000                  Rs. 15
3/4"            27,000                  Rs. 60
1"              50,000                  Rs. 115
1 1/2"          150,000                 Rs. 340
2"              235,000                 Rs. 565
3"              700,000                 Rs. 1,685
4"              1,400,000               Rs. 3,360
    9. Beyond exempt limits Rs. 2.50 Per litre. Additional Rs. 200 Charged on tap sizes > 3/4".

  9.  Clearing & Forwarding Charges at Calcutta Port:
Refer Calcutta Port Trust scale of rates.


  10.  Freight by Road

                Open truck      Trailor         Container
Calcutta to
Birgunj         Rs. 908/ mt.    Rs. 1238.mt.    Rs. 1200/mt.

Calcutta to
Biratnagar      Rs. 660/mt.     Rs. 990/mt.     Rs. 1040/ mt.

Birgunj to
Kathmandu       Rs. 504/ mt.    Rs. 998/ mt.    Rs. 504/mt.

Biratnagar to
Kathmandu       Rs. 1000/ mt.   Rs. 2000/ mt.   Rs. 1000/mt.


  11.  Air Freight

                                <500 kg.        >500 kg.
                                Rs. -Cts.       Rs. -Cts.
Kathmandu - Delhi               24.40           13.00
Kathmandu - Calcutta            16.35           10.55
Kathmandu - Bangkok             56.10           43.85
Kathmandu - Karachi             54.95           41.25
Kathmandu - Singapore           68.60           55.00
Kathmandu - Hongkong            81.15           49.45
Kathmandu - Dubai               117.15          87.90
Kathmandu - Frankfurt           142.25          103.90
Kathmandu - Tokyo               158.85          -
Kathmandu - London              148.10          109.10
                                (Per Kg)


  12.  Current Lending Rates of Commercial Banks

a) Industrial Loan:
   i.   Fixed capital           -       16 percent
   ii.  Working capital         -       18 percent

b) Export bills:
   i.   Letter of credit        -       15 percent
   ii.  W/o letter of credit    -       16 percent

c) Agriculture loan             -       15 percent

d) Cottage and small industries:
   i.   Fixed capital           -       16 percent
   ii.  Working capital         -       18 percent


  13.  Telecommunication:
a) Telephone:
International calls:-
        i.      India - Rs. 20 - 45 per minute
        ii.     SAARC countries - Rs. 45 per minute
        iii.    Other countries - Rs. 85 - 105 per minute.

b) Telex:
        i.      India           - Rs. 20-45 per minute
        ii.     SAARC Countries - Rs. 45 per minute
        iii.    Other Countries - Rs. 105 per minute

c) Fax:
Rates same as international Calls.


  14.  Licence deposits
Fixed Capital           Deposit (Rs.)
Upto Rs. 500,000        1,000
Rs. 500,000 - Rs. 1 mn  2,000
Rs. 1 mn. - Rs. 2.5 mn  4,000
Rs. 2,5 mn. - Rs. 5 mn. 7,000
Rs. 5 mn. - Rs. 10 mn.  10,000
Above Rs. 10 mn.        20,000


  15.   Registration fee:

a) Public Limited Company
Authorized Capital              Registration Fee
Upto Rs. 20,000-                Rs. 40.00 thereafter
                                Rs. 2 per thousand
Upto Rs 100,000.00              Rs. 120.00 thereafter
                                Rs. 0.50 per thousand
Upto Rs. 1 million              Rs. 570 thereafter
                                Rs. 1 per 10,000
Upto Rs. 5 million              Rs. 970 thereafter
                                Rs. 0.50 per 10,000
                                Upto Rs. 10 mn. thereafter
                                Rs. 500 per 10 million

b) Private Limited Company or Proprietorship (Private) Firm:
Authorized Capital/Total Capitol

Rs. 20,000.00   <                       Rs. 60.00
Rs. 20,000.00   - Rs. 50,000.00         Rs. 120.00
Rs. 50,000.00   - Rs. 100,000.00        Rs. 300.00
Rs. 100,000.00  - Rs. 300,000.00        Rs. 1,170.00
Rs. 300,000.00  - Rs. 500,000.00        Rs. 1,950.00
Rs. 500,000.00  - Rs. 1 million         Rs. 3,900.00
Rs. 1 million   - Rs. 5 million         Rs. 5,850.00
Rs. 5 million   >                       Rs. 7,800.00

c) Partnership Firm

Total Capital                           Registration Fee
Rs. 20,000.00   <                       Rs. 50.00
Rs. 20,000.00   - Rs. 50,000.00         Rs. 100.00
Rs. 50,000.00   - Rs. 100,000.00        Rs. 250.00
Rs. 100,000.00  - Rs. 300,000.00        Rs. 850.00
Rs. 300,000.00  - Rs. 500,000.00        Rs. 1,400.00
Rs. 500,000.00  - Rs. 1 million         Rs. 3,000.00
Rs. 1 million   - Rs. 5 million         Rs. 4,500.00
Rs. 5 million   >                       Rs. 6,500.00


  16.  Renewal Fee

Total Capital Investment        Proprietorship  Partnership
Rs. 50,000      <               Rs. 35          Rs. 30
Rs. 50,000      - 100,000       Rs. 50          Rs. 45
Rs. 100,000     - 300,000       Rs. 70          Rs. 60
Rs. 300.000     - 500,000       Rs. 100         Rs. 85
Rs. 500,000     >               Rs. 160         Rs. 150
  17. Registration, renewal and application fee for Patent, Design and Trademark

    Fee                     Patent  Design  Trademark
                        (Rs)    (Rs)    (Rs)
i. Application fee      100     100     100
ii. Registration fee    1000    700     400
iii. Renewal fee        300     250     150


  18.  Duration of Patent, Design and Trademark

Patent - 7 years
Design - 5 years (renewal twice only)
Trademark - 7 years - (to be renewed at 7 years interval)


  19.  Exchange Rates

    
31 December 1996
Exchange Rates fixed by Nepal Rastra Bank

    

CURRENCY                UNIT    BUYING          SELLING

U.S. Dollar             1       Rs. 56.75       Rs. 57.30
For All Transaction
Indian Rupee            100     Rs. 16.00       Rs. 160.15

Open Market Exchange Rates*

                                        Buying                   Selling
Currency                Unit    Cash            T.C.            Cash & T.C.

U.S. Dollar             1       Rs. 56.75       Rs. 57.56       Rs. 57.30
Pound Sterling          1       Rs. 95.81       Rs. 97.31       Rs. 96.74
Deutsche Mark           1       Rs. 36.52       Rs. 37.04       Rs. 36.87
Swiss Franc             1       Rs. 42.11       Rs. 42.68       Rs. 42.52
Japanese Yen            10      Rs.  4.90       Rs. 4.96        Rs. 4.95
    20. *These Exchange rates being the average of previous day's open market rate, would be regarded as an indicative rate. Commercial banks may adjust on these rates in accordance with the prevailing trend of the market.

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HMG
Ministry of Industry
Foreign Investment Promotion Division
Singha Durbar
Kathmandu, Nepal
Tel: 216692
Fax: 220319
Tlx: 2610MOI NP

Copyright 1996 by Foreign Investment Promotion Division, Ministry of Industry, HMG

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