January 13: Although the government has made laws with the aim of facilitating foreign investment in Nepal, Dang Cement has not been able to acquire foreign investment due to the delay in implementation of the Foreign Investment and Technology Transfer Act (FITTA) 2075.
Dang cement has not been able to apply for bringing foreign investment as it took two years to endorse the regulations of the Foreign Investment and Technology Transfer act (FITTA) 2075. Dang Cement Industry was registered 15 years ago.
One of the promoters of the Dang Cement said that they have not been able to bring investment from Chinese partner Hong Kong Redline as the government was not cooperative. The industry must be registered with the Department of Industry to bring 85 percent investment from its partner. But, the industry has not been able to register with the department due to the delay in implementation of the act (FITTA).
Following the publication of FITTA regulation in Nepal Gazette on Monday (January 11), the cement industry expressed its belief that it will now be easier for the industry acquire foreign investment. The promoter claimed that there have been unnecessary hassles after the process of registering the industry at the department was halted.
"If there are no weaknesses in the regulations and it is easy to register the industry, investment will start coming from the partner company," he said, requesting anonymity.
The company has already received approval from the Ministry of Environment to conduct Environmental Impact Assessment (EIA). However, the promoter added that the main work is to attract investment and therefore other works will start only after that.