September 7: Bagmati Province has huge business potential in energy, tourism and agriculture, according to a study conducted by Nepal Rastra Bank (NRB). The study has pointed out that agriculture, tourism and energy have comparatively more potential due to the geographical diversity within the province.

The NRB had conducted the study based on the data of the first six months of the last fiscal year. The study report, which was recently made public, reveals that there is comparatively more potential for agriculture, tourism and energy in Bagmati Province.

Among the districts under this province, Dhading, Kavrepalalchowk and Nuwakot are in the Himalayan region, Kathmandu, Bhaktapur and Lalitpur are within the valley and Makwanpur and Chitwan districts are in the inner Terai belt. Thus, there is immense potential due to the geographical diversity within the state.

Executive Director of Nepal Rastra Bank Dr Prakash Kumar Shrestha said that there is more potential for agriculture, tourism and energy in Bagmati Province. "Of course, there are potentials in other sectors, but the agriculture, tourism and energy sectors are more viable from commercial point of view," he said, adding, “We have come to this conclusion after conducting a field visit itself.”

The report states that Bagmati Province has a suitable geographical location and availability of water resources for hydropower generation. There is a high potential for hydropower, especially in Dolakha, Sindhupalchok and some other districts.

The study has shown that Dhading, Bhaktapur, Kavre and Nuwakot can be developed as vegetable pocket areas. In addition to the federal capital, Banepa, Dhulikhel, Narayanghat and Hetauda are the most populated cities in the province. The study also states that there is a high potential for the market of processed food, vegetables, fruits, fish, meat and other commodities in these areas.

Similarly, the study shows that the agriculture sector can be commercialized if the youths returning from foreign employment could be attracted to the agriculture. The report also states that high value agricultural products can be exported through international flights.

In the same way, there is high potential for tourism as well in this province. The report mentions s that there is more potential for the development of tourism as there are tourist areas including Kathmandu Valley, Sauraha of Chitwan, Syafrubesi and Helambu within the province.

The report has pointed out to the need for increasing investment in tourism infrastructure for promoting tourism in this province.

There is religious, cultural, ethnic and linguistic diversity in this province. Seven different tourist sites within 7 km of Kathmandu Valley are listed in the World Heritage List. Therefore, according to the study, there is a high potential for internal and external tourism in the province.

There is also a high potential for employment opportunities and demographic benefits in Bagmati Province. According to the Economic Census 2075, thirty percent of industrial establishments are located in Bagmati Province. In addition, 20.9 percent of the population lives in this state.

Similarly, Bagmati Province has high potential in infrastructure development. Major cities including the federal capital Kathmandu are in this state. The study report states that such cities have high commercial potential of modern infrastructures such as rail, mono rail, tram, trolley and cable car. There is also potential for food and milk processing industries. The NRB has stated that there is such a possibility as the process of urbanization is taking place at a fast pace in this state and the capital of the country is also located in this state.

There is also a possibility of expanding industry and trade by attracting domestic and foreign investment in Bagmati Province. The province has natural resources including mountains, hills, forests, rivers, mines and minerals. Also, it is in the forefront in basic services including internet, transportation and education. The province accounts for 69 percent of the total deposits in the banking sector and 55 percent of the total loans. In such a case, the study suggests industry and trade can be expanded by bringing in domestic and foreign investment.

There is also a possibility of speeding up the development work in Bagmati Province by mobilizing maximum revenue. Due to urbanization, population density, industry, trade, business, transportation and communication, etc., the revenue base within this state is wide. NRB has stated that the development work can be expedited by mobilizing maximum revenue.

There are challenges of equal scale in Bagmati Province. In particular, there is a challenge to promote commercial agricultural production by conserving the eroded agricultural land due to increasing urbanization. The study has also revealed that there are challenges in management of environmental pollution, traffic management and systematic urbanization alongside development.

It is said that it would be a challenge to speed up the infrastructure development and maintain the quality of the existing infrastructures. The study has shown that there is a challenge to develop the tourism sector by proper protection and promotion of geographical and religious heritage, biodiversity etc. It will also be a challenge to commercialize agriculture by attracting people going for foreign employment and those migrating to urban areas. In addition, the NRB says that it will be a challenge to encourage collective commercial farming to make the use of barren agricultural land.