The government has registered a bill in Parliament to establish the Alternative Development Finance Mobilization Fund-2025 , which will have an authorized capital of Rs 100 billion and a paid-up capital of Rs 25 billion. The Fund aims to invest in infrastructure development and mobilize both domestic and international sources of finance.

The bill, registered last Friday, seeks to provide a legal framework for identifying and prioritizing investment projects and facilitating investment in them. It also includes provisions for establishing the necessary institutional structures and emphasizes the importance of monitoring and evaluation mechanisms.

According to the Ministry of Finance, the objective is to mobilize resources for overall economic development through alternative financing methods, such as bonds, equity funds, and other financial instruments.

The Fund will function as an autonomous body, with the Government of Nepal holding a 51 percent stake. The bill states that the government will initially invest Rs 12.75 billion, which represents 51 percent of the Fund's paid-up capital. However, it also proposes gradually reducing the government's shareholding as the Fund becomes more robust and self-sustaining.

The bill outlines that the Fund will invest in projects that offer high economic returns, generate employment, or contribute to national economic growth. It also identifies potential sources of investment for the Fund.

Projects eligible for financing through the Fund include the development and operation of infrastructure such as information technology parks, special tourism and sports infrastructure, urban and digital infrastructure, as well as transportation systems like cable cars, ropeways, and podways. -- RSS