Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU. The government has officially gained the legal framework to mobilize alternative development finance after President Ramchandra Paudel approved the Alternative Development Finance Mobilization Bill on Thursday.
With the presidential authentication, the government is now authorized to establish a dedicated fund to mobilize large-scale financing for infrastructure and development projects across multiple sectors, including electricity generation, transmission and distribution, roads, railways, airports, tunnels, and urban infrastructure.
The law also allows investment in industrial development infrastructure such as special economic zones, industrial parks, dry ports, and information technology parks. In addition, it covers cable car projects, ropeways, podways, and other modern transport and tourism-related infrastructure.
According to the provisions, the government will set up a fund with an authorized capital of NPR 100 billion and a paid-up capital of NPR 25 billion. The mechanism is expected to serve as a structured vehicle for long-term investment in national priority projects that typically require high upfront capital.
The bill had been under discussion for some time. It was first pushed forward by the government nearly a year ago, when it was passed by the House of Representatives on Bhadra 6, 2082 BS. However, due to political developments and the subsequent dissolution of the parliament following the so-called Gen-Z movement-related upheaval, the legislative process was disrupted and the bill became inactive.
Later, the election-focused government reintroduced the proposal, registering it in the House on Poush 18. The House of Representatives passed the bill on Jestha 7 without sending it to a thematic committee and forwarded it to the National Assembly the same day. However, the National Assembly returned the bill without detailed deliberation.
With presidential approval now secured, the government is expected to move ahead with operational arrangements for establishing the fund and initiating investment planning in priority infrastructure sectors.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
