Trade and Investment

[Investment Opportunity]  [Doing Business in Nepal]  [Products Restricted for Export]  [Business Contacts]  [The Foreign Investment & Technology Transfer Act 1992]  [Trade Representative in Qatar]

FEASIBLE PROJECT AREAS

HYDRO ELECTRIC POWER

Theoretical hydropower potential of Nepal's rivers, based on average flows has been

estimated at 83 million kilowatts, which is one of the largest potentials in the world.

Despite the enormous hydropower potential, till now Nepal has been able to generate

only 261.918 MW of hydropower which is 0. 3% of its total hydropower potential.

Demand for power is growing at about 10 percent annually. At present electric power

supply is available to only 14 percent of the population. It is enunciated that the

country's power demand will grow to 0.61 million kilowatts by the year 2005 and to

1.64 million kilowatts by the year 2015. A large amount of power produced in Nepal

can be easily exported to neighboring countries. Nepal Electricity Act of 1993 provides

access for the sale of its power to other country and also for the import of power from

other country. Nepal and India entered into a Power Trade Agreement, which allows

independent mutual power deals on government, semi government and private sector

levels between two countries.

Hydropower Potential

• Average annual flow : 225 Billion QM

• Theoretical Generation Capacity : 8300ON1W

• Economically Feasible Capacity : 44000 MW

• Existing hydropower Generation : 262 MW

• Demand by 2005 : 61OMW

Income Tax Incentives for Hydro Power Projects

• Generation 15 years tax holiday

• Transmission 10 years tax holiday

• 0 & M contracts 5 years tax holiday

Royalty Payments 

Period (1-5 years)

• Installed Capacity: NRS 100/KW

• Energy Generated: 2% of Ave.tariff/KWh

Period (15 + years)

• Installed Capacity: NRS 1000/KW

• Energy Generated: 10%of Ave.tariff/KWh

Investment Opportunities in Hydropower Sector

TOURISM

Government of Nepal has adopted tourism Policy in 1995 with a view to promote tourism sector. Under the policy, Nepal will be developed as a secure tourist destination. Existing facilities will be upgraded and new tourist areas will be developed. Competitive tourism promotion and marketing program will be launched in tourist originating markets to establish Nepal as major tourist destination. With a view to promote tourism, Government of Nepal had also launched Visit Nepal Year program in 1998.

Many tourists visit Nepal in ever increasing number. In 1990 around 255000 tourists visited Nepal. Tourists' arrival in 1996 increased to 393613. Asian region and Western Europe continue to be the prime tourist market followed by North America, Australia and the Pacific. Recent projections made on tourists' arrivals indicate a very steady growth to reach 625000 in 2000,761000 in 2005 and 953000 by the year 2010.

The number of star and non-star hotels is increasing rapidly. The quality and services of these hotels have been improving. By the year 1994 the number of hotels reached to 394 and the beds to 17730. By mid January 1998 the number of tourist hotels and tourist beds has increased to 706 and 27612 respectively. While considering the projected arrivals and existing stock of hotel rooms, it is estimated that there will be a big shortfall of rooms of 4 and 5 star standard by 2010 in Kathmandu and high-class hotels in Pokhara which is becoming an important tourist destination.

The tourism industry is growing very rapidly and Nepal has tremendous potential for tourism development because of its unique natural and cultural heritage. A major strategy in meeting the demand for hotel rooms in Nepal is to encourage increased private investment, including private foreign investment for the development of tourist infrastructure such as 4 and 5 star hotels and resorts. The construction and operation of hotels and resorts offer very promising prospects for profitable investment. Similarly, investment in popular tourist activities and recreations would be successful undertaking. Foreign Investment will be encouraged in capital intensive tourism industries such as hotels, resorts and areas which transfer modern technology and skills.

AGRO AND FOREST BASED INDUSTRIES

MEDICINAL AND AROMATIC PLANTS

Due to the varied agro-climatic environment, Nepal is very rich in medicinal and aromatic plants with over 700 plants species. The collection of such plants from wild sources has been practiced since ancient times. With the establishment of the Royal Drugs Research Laboratory in 1962 the commercial utilization of medicinal plants has been encouraged. More than 300 species have been screened and studied and extraction of diosgenin, reserpine, alkaloids of belladonna, glycosides of digitalis, lemon grass oil, rosin, turpentine and menthol has commenced. Nepal, a traditional exporter of crude herbs, is now gradually emerging as an exporter of processed herbs and aromatic plants. In recent times commercial cultivation of medicinal plants such as atropa belladona and aromatic plants such as palmarosa, lemon grass, citronella and mentha arvensis have assumed importance. Recent studies also indicate good prospects for the cultivation and processing of chrysanthemum cinerariaefolium (pyrethrum), claviceps purpurea (Ergot), digitalis lanata, eucalyptus camaldulenisis, glycyrrhiza flabra, mucuna pruiens, piper longum and valeriana wallichi.

The medicinal and aromatic plants can be exploited for the production of following: essential oils from lemongrass, citronella, palmarosa and mint, oleoresin from ginger, large cardamons, timur and tejpat; turpentine oil and rosin from chir pine; medicines from valeriana wallichii, calamus acrous and nardostachye jatamanshi. In addition to traditional medicines and essential oils, herbs and essences also have a potential as a raw material for the production of cosmetics and perfumes, herbal teas and natural health products.

FLOWER SEEDS

Due to varying agro-climatic conditions Nepal is in an unique position to produce a wide variety of flowering seeds which could be sold in international markets. In the summer season zinnia, marigold, gladiolus, salvia, dahlia, canna are grown extensively. In winter and spring most of the annual flowers such as bellies, dianthus, pansy, antirrhinum, helichrysum, aapaver, verbena, sun flower and so on are grown. The potential for seed production of the following varieties, in particular, has been identified as being very good: anemone sp., aster, chrysanthemum morifolium, elsholtzia californica (california poppies), lathyrus odoratus (sweet pea). The availability of varied climatic conditions and inexpensive labour provide Nepal a comparative advantage to produce flower seeds at low cost. Commercial production and export of flower seeds require maintenance of high technical standards and good

supervision. Technology and expertise of foreign companies could be effectively employed to develop this profitable agro-business in Nepal.

VEGETABLE PRODUCTION FOR EXPORT

Due to the variety of agro-climatic regions and fertile soils Nepal produces a wide variety of vegetables of good quality. The major items of vegetables grown on a commercial scale are cabbage, carrot, turnip, radish, cauliflower, peas, capsicum, egg plant, tomato, okra, beans and cucumber. The major centers of vegetable production are in the Kathmandu valley and in the Dhanusa, Sarlahi, Bara, Makawanpur and Chitwan districts. Almost the entire production of vegetables is consumed within the country, though some exports to India and Tibet are taking place. Recently the production of snow peas for export to Japan has got off to a satisfactory start and other items like French beans are to be produced for export. This has clearly demonstrated the potential which exists for the production of a few special varieties of vegetables on a commercial scale for export. Foreign investment for the scientific cultivation of vegetables for export would be a profitable business.

FRUIT PROCESSING

Nepal is endowed with good ecological conditions for the cultivation of a variety of fruits. At present citrus fruits, apple, banana, pineapple, mango, pear, litchi, guava, peach, plum and apricot are available in sufficiently large quantities. Plans are also underway to increase the area under cultivation through commercial fruit development programmes. The total quantity of fruits produced is estimated around 500,000 mt. Fruit processing industries consume a fair proportion of total production. Two important fruit processing industries are engaged in the production of fruit squash, fruit juice, jams, jellies, marmalades and fruit salad. Some of these products are exported from Nepal. Opportunities exist for the setting up of industries to process fruits for sale in export markets as fruit juices and squash, jams and jellies and fruit based special liquors.

TEA DEVELOPMENT

Nepal has commenced commercial production of tea only in comparatively recent times. The Nepal Tea Development Corporation, a government agency owns seven gardens with a total area of around 880 hectares. In addition the private sector owns tea gardens with total area of around 1250 hectares. These tea growing areas are in the Eastern districts of Illam, Jhapa, Panchthar Terhathum and Dhankuta, almost adjacent to the world renowned tea gardens of Darjeeling in India.

The Government has given high priority to increase tea production in the Eastern Districts with a view to achieving self-sufficiency in tea and to export high quality teas to overseas markets. In order to encourage tea cultivation exemption from the land ceiling law has been provided together with attractive incentives. Good prospects exist

for the production of quality orthodox tea in Nepal similar to the Darjeeling teas produced in India. Improved cultural practices, latest technical know-how and efficient management systems are required to bring the tea industry in line with the other tea producing countries in the region.

SERICULTURE

The development of sericulture has been identified as offering very good potential for development in the mid-hills and Terai belt of Nepal by experts from Japan, Korea, China and India. Agro-climatic conditions in these areas favour the cultivation of mulberry and the rearing of cocoons. The Government has set up a nucleus centre at Khopasi about 35 km. east of Kathmandu in 1975. The centre initially served as a demonstration centre and later expanded its activities to provide training, extension and research functions. Since 1991/92 it is also functioning as a major silkworm egg

breeding station. Nepal has developed six bivoltine lines and these will be used to produce hybrid siklworm eggs in the country. The preferred production technology in Nepal is the temperate bivoltine technology which is simple and easily adaptable by small farmers.

On a very preliminary assessment mulberry cultivation could be extended over an extent of 6000 hectares which could yield around 350 tonnes of raw silk and 85 tonnes of waste silk. The value of silk fabric from this level of production could exceed Rs. 1800 mln. Private investment to encourage mulberry cultivation and cocoon rearing by small farmers could be developed successfully in Nepal. Post cocoon activities involving reeling, twisting, weaving and production of items out of silk fabric could be developed as medium-scale industries.

INTEGRATED DAIRY INDUSTRY

Nepal is a net importer of dairy products. The import of milk products-powder, condensed concentrate, butter, cheese-is estimated to exceed Rs. 120mln. per annum. Despite these imports there is a severe shortage of fresh milk, infant milk and other milk products in the country. Nepal has a long tradition in dairy farming. In fact Nepal has in the past exported milk products to India and Tibet in the form of ghee. She could develop the dairy industry to meet domestic demand as well as renew exports to India and other markets. The topographical and climatic conditions are well suited to dairy development. An integrated dairy industry incorporating related activities such as improved livestock breeding, cattle feed production and processing of milk products would offer promising prospects for profitable investment. Such a project could build up on existing small dairy units spread around the country through a well organised programme of extension services to improve livestock breeds and an efficient collection

system for processing in a central unit. 

FLORICULTURE

Due to the variations in climate, topography and vegetation, Nepal has a diversity of ornamental plants and flowering plants which could be scientifically cultivated to promote export oriented business. The flower and orchid industry is presently concentrated in the Kathmandu valley. The commercial development of floriculture is still in a very early stage of development. Out of nearly 25 flower growers, only 3 have entered export business in recent times. The development of tissue culture initiated by the National Herbarium and Plant Laboratory at Godavari is opening up opportunities

for mass production of flowers which could be exported from Nepal. Already tissue culture method of propagation has been successfully developed in the production of orchids and other cut flowers. Some of the orchid genera which have been successfully developed are coelogyne, cymbidium, dendrobium, epidedron and vanda. Among the

other cut flower species carnations and chrysanthemums have also been similarly developed. Prospects for the development of floriculture business are excellent especially for the following species of orchids: cymbidiums dendrobiums, calanthe, coelogyne. Similarly in other cut flowers carnations, gerbera, rose, gladiolus

primulinus, iris polyanthes, chrysanthemum, narcissus tazella offer very good prospects. It is also feasible to introduce the following varieties or commercial development in Nepal: Exotic orchids-paphiopedilun, cattelya, cattelya hybrids,

arachris, epidendron, mokara, oncidium and odontoglossums; exotic cut flowers-tulipa, anthurium, alstroemeria, freesia and gysophila. Foreign collaboration for the development of floriculture to provide technical know-how for cultivation of flowers is required to meet the standards demanded in international markets and to provide guidance in market identification and development. The availability of direct flight connections to Frankfurt, London, Dubai,

New Delhi, Singapore and Hong Kong offer good prospects for the development of a profitable export oriented floriculture business in Nepal.

PROCESSING OF SPICES

Nepal produces a large variety of spices such as ginger, timur, large cardamom, turmeric, medicinal spicy herbs, himali cummin, cinnamon, garlic and a variety of chillies. Most of the spices cater to domestic demand and some items like chillie, turmeric, garlic, ginger and cardamom are exported to India and other markets in a raw form. The estimated production of major spice items in 1990 was 92,000 metric tonnes.

A breakdown according to major items is given below:

Item and m.t/year

• Turmeric (29,085)

• Cummin and pepper(15,229)

• Chillies(14,170)

• Ginger (5,332)

• Dried garlic(5,258)

• Coriander(2,238)

• Other spices(20,798)

Good prospects exist for the setting up of spice processing industries using automatic, dehydration, cleaning and packing technology to export increased value added products. The export market potential and value as indicated in a recent study reveal the following:

Market Potential and Value ( US$ in Millions)

• Saffron(33,000mt.) (12.6)

• Chillie(8,000mt.) (21.1)

• Cardamom oil(50mt.) (15.4)

• Coriander(5,900mt) (6.5)

• Turmeric(1,600mt) (4.0)

Foreign collaboration is required to provide technical know-how for processing and packing and to secure marketing outlets.

MUSHROOM CULTIVATION

Many varieties of edible mushrooms are found in a wild state in the Terai lowlands, the hills and mountains of Nepal. Two rare varieties similar to European types known as "Guchchi" and "Yarsha Gumba" are found in the hills and mountains under natural conditions. Among the cultivated varieties, agaricus bisporus, pleorotus spp and volvariella are important. The temperature and humidity conditions necessary for growing agaricus bisporus (button mushroom) are very satisfactory in the hilly regions during some seasons. The pleorotus spp. (oyster mushroom) and volvariella (paddy straw mushroom) grow easily during most seasons. The Kathmandu valley has temperature, humidity and other biological factors suitable for the cultivation of these two varieties of mushrooms throughout the year. The plant Pathology section of the Department of Agriculture's research station at Khumaltar (Kathmandu valley) is producing mushroom spawn. This unit has well qualified staff to undertake research, spawn production and for extension work.

The potential for mushroom production on a commercial scale is good especially with a view to marketing overseas as fresh mushroom, dried mushroom and canned mushroom.

COFFEE PROCESSING

Coffee beans are produced in Western Development Region of the country. Though the international cofee price has increased sharply, the coffee farmers in Nepal is getting not more than 50 cents a kg. Establishment of small~scale coffee processing plant would encourage the farmers to grow more coffee beans. This industry can substitute the import and also export high quality chemical free coffee. 

MINERAL EXPLORATION AND EXPLOITATION

The mineral resources which could be commercially exploited have been identified as limestone, magnesite, talc, dolomite, silica sands, clay, building and construction stone, iron ore and lead/zinc. Several major limestone deposits have been identified in Nepal and exploitation of some of these deposits for the manufacture of cement and agricultural and industrial lime is already underway. Prospects for the further exploitation of these deposits for industry are considered to be very good especially for production of cement, agricultural and industrial lime and bleaching powder. Major limestone deposits are found in Okhara (10 million metric tonnes) Udaipur (51.4 million metric tonnes) and Surkhet (48.6 million metric tonnes). In addition to these major reserves sizeable deposits are found in Panaute, Dhankuta and other areas in Udaipur. Dolomite is known to exist in a number of areas and one large deposit has been quantified. This deposit has so far not been exploited. A large deposit of magnesite has been identified and exploited for the production of dead burnt magnesite. Talc deposits have been identified and one deposit is being exploited. Two large silica sand deposits are found in Nepal and these could be exploited for the production of sodium silicate. Large deposits of clay are found throughout the country and are being exploited mainly for the production of bricks and tiles and as raw materials for the cement industry. Stone used in the building and construction industry is available in large quantities. Exploitation is at present limited to the production of aggregates. An important marble deposit is being exploited for the production of slabs. A commercial deposit of lead/zinc has been identified and initial steps taken to exploit. An iron ore deposit has been identified but not yet exploited. The Government has blocked out land in the Terai belt for oil exploration and one foreign company was engaged in oil exploration activities. 

Mineral exploration and exploitation in some of the areas identified above offer promising prospects for investments.

TEXTILE INDUSTRY

The textile industry has been identified as a basic needs industry and high priority is attached to investments in this subsector. Based upon a minimum percapita consumption of 11 metres (low estimate) by the year 2000, the total requirement of textiles is estimated at 254.8 mln. metres. Installed production capacity at present is estimated at 18.3 mln. metres but capacity utilisation has been less than 50 percent. In order to achieve self-sufficiency in clothing it is proposed to encourage the establishment of several textile units, several of which would be integrated textile mills involving spinning, weaving and finishing of textiles. The production of cotton fabrics and synthetics and blends would be in high demand. In view of the high priority attached to this industry, investors are assured of very good conditions for profitable investment.

ELECTRICAL AND ELECTRONIC INDUSTRIES

The electrical and electronics industry sub-sector in Nepal is still in an early stage of development. According to the 1994/95 census of manufacturing industries, there were 37 firms operating in formal sector activities of which 33 were engaged in electrical industries and 4 in electronic industries. Since the survey a few additional units have been established.

The domestic demand for electrical goods is expected to increase with the expansion of the electric power generation system, telecommunications and radio and TV broadcasting. According to preliminary estimates significant demand is forecast for heaters, radio, TV and communication equipment and apparatus, electrical appliances and house wares, batteries, wires, cables, plugs, switches, lighting fixtures and so on. Prospects for setting up industries to produce these items are therefore good. 

Nepal offers very goods prospects for the development of electronic assembly industries catering to export markets. The low cost of labour would give Nepal a competitive edge over other locations in South and South East Asia. The labour force has the ability to master quickly assembly operations which involve use of hand tools such as screw drivers, pliers and soldering irons. In addition to the advantage of low cost labour, Nepal provides a stable environment which is conducive to dovetail assembly schedules with the production of finished goods in overseas locations on a planned basis. Assembly schedules with the production of finished goods in overseas locations on a planned basis. Assembly industries which use airfreight for import of components and export of assembled units would be feasible. The products should have a high value to weight ratio. Kathmandu, the capital has good air connections to Europe through Frankfurt,London and Moscow and to the Far East through Singapore, Bangkok and Hong Kong. 

Some of the electronic industries which could be established in Nepal are computer keyboard assembly, single and double side circuit boards, small ferrite core transformers for switching power, circuit board stuffing and test service, cable harness assembly, domestic mains multi-socket power strips and similar assembly industries requiring a high labour content.

PHARMACEUTICAL INDUSTRIES

Nepal has a large and growing demand of drugs and pharmaceuticals that are being met by domestic production about 20 percent of the requirements and the balance is met by importation. Royal Drugs Ltd. is a public sector undertaking as a pioneer in pharmaceuticals industry. Prospective companies may benefit by setting-up of a manufacturing plant or marketing pharmaceuticals or initiating bulk drug production for the whole country. The market for pharmaceuticals is estimated to be more than Rs. 5,000 million. Much of the demand is supplied by India based national and multinational companies. The demand for pharmaceutical is expected to increase significantly over the next decades due to improvement of modern health care facilities and establishment of a good transportation network within the country. Import of Pharmaceutical products for the year 1997/98 is estimated to be Rs. 3.36 millions. 

Good prospects exist for the establishment of a few industries producing formulated drugs. Thebest areas for immediate investment are in the production of the major high volume product lines of Essential Drugs out of National List of Essential Drugs, categorised by Ministry of Health Department of Drug Administration.

LEATHER GOODS INDUSTRIES

Leather sector in Nepal is considered as one of the most potential areas in terms of its value addition and export possibility. In Nepal leather sector consists of three main areas, leather processing, leather goods manufacturing and foot wear production. As of now leather sector comprises of third position with regard to overseas exports of Nepal. The availability of abundant raw materials in different parts of the country gives a greater scope for industrial production of leather and leather goods. At present industrial production is carried out by 16 industrial units, located mostly in Terai area. The bulk of the production and exports are in semi finished wet blue and crust. During Fiscal Year 1997/98 hides and skins worth Rs. 414 million were exported to overseas countries only. The tanning industries in operation have been using traditional technologies. The technologies that are wellestablished in tanneries have not yet reached to Nepalese tanneries. The Government has opted for gradual swift over for accomplishing increased production of crust And /or finished leather. There exists ample opportunities for enhancing productivity of the existing tanneries as well as establishing new tanneries with modern technologies.

With regard to leather goods producing industries in the country about one hundred leather based industries are in operation. Of which one fourth are producing leather goods and the rest are on footwear. However, most of the leatherbased industries are operating on micro scale using traditional skills and technologies. During Fiscal Year 1997/98 leather goods worth Rs. 3 1.24 million were exported to overseas countries. Taking into consideration the availability of raw materials within the country, there exist greater prospects for the development of leather based industries in Nepal. However, there is a need to improve and diversify the leather goods to be produced in the leather goods to be produced as well as dissemination of information of potential export markets.

Based on above ststed background information, leather sector could be considered as one of the potential areas with diverse possibilities for enhancing Nepal's industrial sector. This require for introducing new technologies and information on export market opportunities.

AIR SERVICES

The Royal Nepal Airlines Corporation (RNAC) used to have a monopoly of all civil domestic air services within Nepal. Royal Nepal Airlines (domestic) operates domestic services by a fleet of 10 twin otters and one HS 748. aircraft at present. There are 44 domestic airports some of which are all weather and some fair weather airports. Flights, especially of the most popular tourist routes, are frequently full with load factors of 70-90 percent..

The Government has embarked on open-sky policy permitting private airlines to operate domestic as well as some international airservices. Many private airlines including Necon Air and Buddha Air have been catering services to the native passengers as well as foreign tourists. Private helicopter services are also confing up in joint venture. For new airlines the flight routes and their frequency will have to be negotiated and agreed upon with the Civil Aviation Authority.

COMPUTER SOFTWARE DEVELOPMENT

The vast changes in computer technology and the mass production of very versatile microcomputers have made the use of computers very widespread. The particular needs of computer users are also becoming increasingly specialised creating a demand for customer designed software packages. The development of computer software has thus become a very promising and profitable business and current indications are that this trend will continue in the future. Due to costs involved in software development in many of the development countries, there is an increasing tendency among firms to purchase/develop their software needs in low cost locations in some developing countries, as against in house software development. Nepal has well educated and trained manpower who could undertake the development of computer software packages to meet the special needs of individual clients. The cost of developing software in Nepal would be a small fraction of developing them in a developed country. Already one joint venture company is successfully operating such a system in Nepal. Prospects for setting up a few more software development houses in Nepal are promising. Computer software houses could undertake custom programming, tailoring software packages to operating systems of new machines and generating specialised software for various professional and manufacturing services.

In addition to software development, Nepal is also in a strong position to undertake data entry operations for foreign clients at very competitive prices. Personnel required for data entry operations are available at a relatively low cost. Facilities are also available to transmit information required for data entry operations with speed and at

relatively low cost.

LIST OF PROJECT SUITABLE FOR FOREIGN INVESTMENT

A. AGRICULTURE & AGRO BASED INDUSTRY

• Cultivation of vegetables, tomato, egg plant, broccoli, cabbage, lettuce, okra, sweetpepper, carrot, greenchilly, cauliflower, snow peas, French beans. Markets in Middle East, Hong Kong, Singapore, Japan.

• Cultivation and processing of vegetables. Export markets

• Cultivation of mushroom Exports fresh dried & canned

• Cultivation of flowers rose, carnation, orchid chrysanthemum Export to the MiddleEast, Singapore, Hong Kong, Japan

• Ornamental plants. Export markets

• Cultivation of fruits grapes, apricots, peaches, mango, avocado, litchi, orange. Export in fresh form.

• Cultivation and processing of fruitsdried mango, dried apple, jam, jelly, squash. Export markets

• Production of flowering seeds Export markets in Europe, USA, Japan

• Production of vegetable seeds Export to South & South East Asian markets

• Cultivation and processing of herbs. Export and domestic markets

• Cultivation and processing of Soya.Export and domestic markets

• Development of tea industry Domestic and export markets

• Cultivation of sugarcane and processing sugar . Domestic markets

• Cultivation and processing of fresh and dried ginger. Export market

• Cultivation and processing of garlic. Export market

• Integrated dairy development. Domestic market

• Integrated livestock industry. Domestic market

• Production of skimmed milkpowder. Domestic market

• Baby food and nutritious food. Domestic market

• Animal feed. Domestic market

• Aquaculture. Domestic market

• Tomato processing. Export market

• Oil seed processing and oil extraction. Domestic market

• Coffee cultivation and processing . Export & Domestic market

B. TEXTILE & WEARING APPAREL INDUSTRY

• Integrated textile mill Domestic market

• Textile processing Domestic market dyeing and finishing

• Woollen knitwear Domestic and export markets

• Manufacture of acrylic & Domestic market polyester fabrics

• Manufacture of dhoti Domestic market and saree

• Terry towels Expon market

• Bed linen Export & domestic markets

• Readymade garments Export market

• Spinning mill Domestic market

• Gray cloth Export & domestic markets

• Leather shoes Export & domestic markets

• Canvas shoes Export & domestic markets

• Scriculture and silk Export market production

• Hand knitted sweaters Export & domestic markets

C. MANUFACTURING INDUSTRY

• Light engineering industries Domestic market

• Electric arc furnace Domestic market

• Leather products Domestic & export markets

• Pharmaceutical products Domestic market

• Ceramics Domestic market

• Writing, printing and news print papers Domestic market

• Saline & dextrose Domestic market

• Surgical cotton & bandaging industry Domestic market

• Chemical fertilizers Domestic market

• Pesticides, insecticides Domestic market

• Industrial chemical Domestic market

• Glass bottles, containers Domestic market

• Domestic electrical appliances Domestic market

• Electric power capacitors & condensers Domestic market

• Irrigation pumps Domestic market

• Manufacture of bicycles Domestic market

• Bleaching powder Domestic market

• Agricultural lime Domestic market

• Manufacture of chalk Domestic market

• Manufacture of yeast Domestic maiket

• Production of malt Domestic and Export markets

• Assembly of electronic components Export market

• Manufacture of dry cell battery Domestic market

• Manufacture of starch, glucose and fructose syrup Domestic market

• Cane furniture industry Export market

• Speciality paper Domestic market

• Video cassette industry Domestic market

• Cold rolling mill Domestic market

• Aluminium rolling mill Domestic market

• Toilet and laundry soap Domestic market

• Caustic soda Domestic market

• Mineral water bottling plant Export market

• Sugar industry Domestic market

• Essential oils and resinoids Domestic & Export markets

• Hand tools Domestic market

• Professional and occupational tools and instrument Domestic market

• Medical instruments and tools Domestic market

• Industries manufacturing fuel conserving instruments Domestic market

• Pollution preventing accessories industry Domestic market

• Organic fertilizer Domestic market

D. CONSTRUCTION INDUSTRY

• Builders hardware Domestic market

• Stone industry-cutting & polishing Domestic market

• Stone aggregates Export & domestic markets

• Bricks (dry press) Domestic market

• Plywood Domestic market

• Cement-large plants Domestic market

• Cement-mini plants Domestic market

• Floor and wall tiles Domestic & export markets

• Parquet flooring Domestic &.export markets

• Housing and apartment building Domestic market

• Varnishes, paints & allied products Domestic market

• PVC pipes & allied products Domestic market

• Aluminium extrusions Domestic market

• PVC doors/windows Domestic market

• State, granite and cement Domestic market

E. TOURISM INDUSTRY

• Resort, hotels, motels

• Cable car complexes

• Rafting equipment

• Hot air ballooning and para-sailing

F. SERVICE INDUSTRY

• Air freight forwarding services

• Sea freight forwarding services

• Nursing homes

• Carpet washing

• Air services

• Computer software development

• Data entry services & Photo scanning and offset printing

G. MINERAL BASED INDUSTRY

• Cement exploration & production.

• Petroleum exploration & exploitation

• Natural gas exploration & exploitation.

• Construction materials (clay, sand, gravel, bod marble, stone) exploration & exploitation.

• Processing of Mica

• Exploration & processing of quartz.

• Production of iron, dolomite and talc.

• Glass production.

H. ENERGY INDUSTRY

• Solar energy

• Wind energy

• Hydroelectric plants

I. PROJECTS UNDER BOT ARRANGEMENT

• Katlunandu Hetauda Tunnel link

• Kadmiandu Dhulikhel Express Highway

• Godavari Phulchoki cable Car

• Trolley Bus Kathmandu Ring Road

• Kathmandu Dharke Road (alternative)