INDO-NEPAL JOINT VENTURES

Background

Nepal in it's effort to industrialise, has so far implemented seven developmental plans. From the Fifth Plan (1975-80) onwards the focus has significantly shifted from establishmet of infrastructural facilities and agricultural development to maximisation of industrial output and its equitable distribution.

However, Nepal is still in early stages of industrial development and is therefore an attractive proposition for industrial investment. Indian companies, backed by their experience and capablities developed in the field of appropriate technology with emphasis on employment orientation and export promotion, can play a very positive role in furthering the process of industrialisation by joining hands with their counterparts in Nepal. Comparative advantages in terms of geographical proximity, efficient communication links between India and Nepal, free convertibility fo Indian currency in Nepal, Inida's capability to provide servies are some of the other positive features which could facilitate joint ventures between the two countries.

At present there are 12 Indo-Nepalese joint ventures. Out of these 7 are in the manufacturing sector (with a total investment of Indian Rs. 169. lakhs i.e. about 2% of our total global investment) 2 are in exploration of minerals and 2 in the hotel industry and one in tourism. a list of on-going Indo-Nepalese Joint Ventures is given in Annexure.

Potential Areas for Joint Industrial Ventures

Keeping in view, the recent policy pronouncements of the Government of Nepal welcoming foreign investment particularly in the medium and large sectors, some of the potential areas identified for joint industrial ventures are as follows:

 

Annexure

List of Indo-Nepal Joint Ventures
Name & Address of the Name & Address of the Field of Indian Company Joint Venture Collaboration Organisation M/s Oberoi Hotel(India) Soaltee Hotels Ltd. Hotel (P)Ltd., Calcutta Kathmandu M/s Union Carbide india Nepal Battery Corpn.Ltd. Dry Batteries Ltd., Calcutta Nepal M's Mohan Meakin Ltd. Nepal Battery Corpn.Ltd. Mfr. & bottling New Delhi Nepal of beer M/s Hyderabad Asbestos Nepal Metal Co.Ltd. Exploration cement products ltd., Kathmandu of minerals. M/s Orissa Induatries Ltd nepal Orind Magnesite Mining of magnesite & Rourkela (P)Ltd., Kathmandu mfg. of refractories M's Asian Paints(I)Ltd. Paints enamels & Bombay Varnishes M/s Sita World Travels M/s United World Travels, Travel, tourism & India Ltd., New Delhi Nepal transportation M/s Jenson & Nicholson Jenson & Nicholson Enamels, Paints & (India Ltd., New Delhi (Nepal)(P)Ltd. Synthetic dyes M/sITC Ltd. M/s Surya Tobacco Co.Ltd Mfg. of Cigarettes Calcutta British American Tobacco Co M/s Organo Rubber(P) Mfg of rice mill rubber rolls Ltd., New Delhi M/s Rajasthan Fertilisers Shree banshidar Industries Textile Mill & Chemicals Corporation Ltd., Nepal Ltd., M/s The Indian Hotels Co. M/s DeLAnnapurna hotel The Taj Mahal Hotel Hotel(P)Ltd., Appollo Bunder Kathmandu (Nepal) Bombay 4000039