SAGAR GHIMIRE
February 8: Even after one and a half years of establishment, the One Stop Service Center (OSSC) set up by the government to deal with investors is operating in the absence of representatives of over half a dozen government agencies.
Due to a long delay by these government agencies in sending their representatives to the OSSC, investors continue to face trouble to get their work done.
The OSSC was established at the premises of the Department of Industry (DoI) in May 2019 with an objective of providing all services—ranging from approval of investments to exit of an industry—for investors from a single place.
To offer all services required for investors, the government promised to house 13 government agencies in the One Stop Service Center.
However, seven agencies are yet to show their presence at the OSSC, requiring investors to visit the respective office of these agencies for the paperwork.
Despite promises from the government that the single-window would cut hassles, cost and time for investors, the reality is different at the OSSC.
Crucial government agencies like the Ministry of Physical Infrastructure and Transportation, Ministry of Forest and Environment, Office of the Company Registrar and Nepal Electricity Authority have not sent their representatives to the OSSC yet.
Investors and experts say that the OSSC cannot meet its objectives without bringing all government agencies dealing with investment on board.
“It was said that all services are available from the OSSC. But, that’s not the case here. I was told that we should visit offices of some agencies that are not here to get their services,” a lawyer visiting the OSSC to get information for a Japanese investor told New Business Age.
“Even the Office of the Company Registrar does not have a representative here. If asked, staff here would point towards the building of the Office of the Company Registrar nearby. Establishment of the OSSC should have ended the hassle of visiting various government agencies,” he added.
However, Gyanendra Parajuli, director at the Department of Industry, claims that the absence of various agencies have not made a significant impact on the overall work of the OSSC.
“Investors rarely seek services of those agencies which have not sent their representatives yet. But, these agencies will also send their representatives gradually in line with the spirit of the OSSC,” said Parajuli, who is also the spokesperson of the DoI.
A study carried out by the DoI recently concluded that the absence of representatives of seven agencies at the OSSC is a managerial issue.
Absence of various government agencies is not the only issue hampering the performance of the OSSC.
Even the representatives of various agencies who have been deputed at the OSSC cannot make decision in all cases. As they do not have the authority to decide themselves in all cases, they have to forward those files to the respective agencies for approval.
“The intention of setting up OSSC is good. However, investors have not been able to experience anything worthwhile after this mechanism came into operation,” Shabda Gyawali, Investment Director at Dolma Impact Fund, told New Business Age. “While there are some government agencies that are yet to send their representatives to the OSSC, those who already have their desks cannot promptly make decision in many cases. What’s the difference now and then? Earlier, investors had to visit Nepal Rastra Bank whereas staff at their desk of the OSSC forwards the files now,” he added.
Dolma Impact Fund is the first international private equity and impact fund dedicated to Nepal and provides capital and expertise to growth companies related to sectors like renewable energy, agriculture, health and tourism.
Gyawali said that the government should implement a system that approves investment on certain sectors through automatic route to end hassles for foreign investors.
Admitting that staff working at the OSSC cannot make decision themselves in certain cases, DoI’s Director Parajuli said that respective agencies should delegate them full authority.
According to the DoI, it has approved 129 projects in the first six months of the current fiscal year 2020/21 for foreign direct investments worth Rs 25.26 billion.
Government agencies yet to send representatives:
- Ministry of Physical Infrastructure and Transport
- Ministry of Forests and Environment
- Ministry of Labor, Employment and Social Security
- Department of Commerce, Supplies and Consumer Interest Protection
- Office of Company Registrar
- Nepal Electricity Authority
- Nepal Telecommunication Authority
