There has been notable increase in investment in the industrial sector.

As per a news report of Rastriya Samachar Samiti (RSS), investments in large scale and medium scale industries along with small scale industries with foreign investments has increased in the FY2016/2017 compared to FY 2015/2016.

In the last fiscal year, investment in large, medium and small scale industries with foreign investments totaled Rs 122.7 billion whereas, it is Rs 145.84 billion till date in the current fiscal year.

According to Durga Prasad Bhusal, Spokesperson at the Department of Industry (DoI), 410 industries were registered in the last fiscal year whereas, 433 industries have been registered in the current fiscal year so far.

According to RSS, out of the total industries, 22 agriculture and forest-based, two construction, eight information, broadcasting and communication, 16 energy-oriented, 109 manufacturing, three mineral-based, 141 service-oriented and 132 tourism-oriented industries have been registered at the DoI.

Previously, the Department used to register industries with investment size ranging from Rs 30 million to Rs 100 million under medium scale industries and those with investment exceeding Rs 100 million under large scale industries.

But with the changes in the capital requirement in the current fiscal year, industries with investment ranging from Rs 100 million to Rs 250 million are registered as medium scale industries and those with investment exceeding Rs 250 million are registered as large scale industries.

Among the industries registered at the Department, 87 are large scale, 76 medium scale and 270 small industries with foreign investments.  According to DoI, Rs 130.36 billion, Rs 1.27 billion and Rs 1.52 billion have been invested in large, medium and small industries with foreign investment respectively.

In the last fiscal year, 77 large scale, 72 medium scale industries along with 261 small industries with foreign investments were registered at the department.

Meanwhile, small industries with domestic investments are registered at the Cottage and Small Scale Industry Development Committee. DoI is authorised to only register small scale industries with investment not more than Rs 100 million in this regard.

According to Bhusal, the increase in the industrial sector is a result of the efforts of former Industry Minister Navindra Raj Joshi to create a favourable investment environment. He said that promulgation of the constitution and the local level elections have also encouraged investors to feel more secure.