Bengaluru, Mar 26 (KNN) The Nepalese government is offering several incentives to investors in the hydro power sector with special sops to small and medium enterprises which include income tax rebate.
Incentives offered by the Government of Nepal for Indian investors include, “100 per cent equity holding in small, medium and large industries, no license needed for setting up any business, minimal approval procedures, maximum of 20 per cent corporate tax on profits and IT rebate up to a maximum of 30 per cent, 80 per cent rebate on customs duty and full exemption from sales tax for manufacturing industries importing plant, machinery and equipment, and excise duty rebate.”
Further, “Indian investors or workers do not require any visa and can invest and repatriate in Indian currency,” said Charge d’ Affairs, Embassy of Nepal, New Delhi, K N Adhikari.
Adhikari was delivering the keynote address at a Seminar on Tourism, Trade and Investment Opportunities in Nepal, organized yesterday by Karnataka Small Scale Industries Association (KASSIA) in association with Grama Shikshana Charity Foundation, Hubli.
Also speaking on the occasion, Minister (Economic), Embassy of Nepal, New Delhi, B P Lamsal said that Indian investors have a huge opportunity opening up in Nepal’s hydro power sector…that hydro projects like Seti, Tamakoshi, Upper Karnali, Arun and Budhi Gandaki had attracted the interest of foreign investors.
Meanwhile, President, Federation of Karnataka Chambers of Commerce and Industry, R Shivakumar pointed out that Nepal’s rivers could yield 44,000 MW out of a potential 83,000 MW.
Nepal, according to President, KASSIA, B P Shashidhar offered a lot of business opportunities for Karnataka’s SMEs in sectors such as industrial manufacturing, steel-rolling mills, cement, jute, sugar, tea, carpets, garments, textiles, oilseed mills and food mills, in addition to hydropower, tourism, agriculture, and mining sector.
Echoing similar sentiments, Chief Trustee, GSCF (Gram Shikshana Charity Foundation), Hubli, Ravindra Hombal described Nepal as one of the fastest growing economies in Asia and said Bangalore as India’s IT Capital and as the world’s healthcare hub, will stand to gain from better trade ties with Nepal.
Recently, India and Nepal formalized an amendment to a bilateral treaty to facilitate traffic in transit for goods of third country origin exported from Nepal. Until now, only goods of Nepalese origin were allowed to be exported through India to third countries.
The amendment was necessitated since, according to the earlier procedure, only goods of Nepalese origin were allowed to be exported through India to third countries.