June 5: The government is preparing to establish an Industrial Development Fund (IDF) with a capital investment of Rs 500 billion. The Ministry of Industry (MoI) has been preparing to establish the fund to collect investment for production-oriented industries and infrastructure projects.

According to the concept of the Ministry, the fund will include the investment from government, non-resident Nepalis, foreign investors and the general public. The total responsibility of the fund will be handed over to the private sector with one representative from the government sector.  The government will work as a facilitator.

The money in the fund will be invested in various profitable projects. According to Industry Minister Nabindra Raj Joshi, the fund will be invested in many industries and infrastructure projects.

"We are taking the proposal to the meeting of the Council of Ministers on May 2 for agreement in principle. Through the fund, we want to develop the national economy through public participation," said Minister Joshi.

The fund will remain as a public company and has a target to collect Rs 100 billion from NRNs, Rs 100 billion from private sector, Rs 100 billon from foreign investors and Rs 100-200 billion from the public.

The government will also have a certain percent of shares in the fund. The fund will encourage utilising the remittances for productive purposes. The fund will raise amounts as per the projects.

Minister Joshi said that the amount in the fund is not just for the purpose of collection, but to utilise it in the form of capital for investing in various projects.  "We will select the projects for investment before raising the funds and on the basis of it, the Fund will manage the needed amount," informed Joshi.

"The fund can be mobilised to operate the governmental and private industries which have been closed due to lack of investment. The fund will play an important role in developing the industrial sector and provide job opportunities in those sectors,"said Minister Joshi.

The ministry is preparing internally to create directive committee under the coordination of Industry Minister and Work Performance Committee under the coordination of industry secretary after the agreement in principle from the meeting of the Council of Ministers.

Minister Joshi said that the works for establishing the fund has been moved forward with the agreement from the umbrella organisations of the private sector.