The success stories of non-resident citizens in other countries, especially in India , encouraged the Nepalis around the world come together under Non Resident Nepali Association (NRNA) in October 2003, with enthusiasm to invest in Nepal . While, the government has expressed its willingness to promulgate regulation to legalise their investment in here, laws are yet to be passed. While NRNA stresses immediate promulgation of the regulation that has been drafted and registered at the parliament secretariat, lawmakers stress for more debate on it. NRNA demands for dual citizenship, long term visas and investment environment here among other things.
Dr Upendra Mahato is the president of International Coordination Committee and the NRNA. Born in Siraha in 1960, Dr. Mahato is an established international entrepreneur in Russia . In addition, he is the president of Russia-Nepal Chamber of Commerce and Industry and the honorary consul general of Nepal to the Republic of Belarus . He holds a PhD and a DSc degrees in soil mechanics from International Academy of Information Technology, Minsk , Belarus .
October 11 marks the third anniversary of the NRNA. On this occasion, he talked to Indra Adhikari of Nepalnews on wide range of subjects related to NRNs via email. Excerpts:
What do you think is the cause of delay in bringing the NRN law? What should in incorporate?
Their Majesties King Gyanendra and Queen Komal and Dr Upendra Mahato at the 1 st NRN conference.
Their Majesties King Gyanendra and Queen Komal and Dr Upendra Mahato at the 1 st NRN conference.
It would be appropriate if you ask the reason of delay in bringing this law with the government and the reinstated parliament. We have been asking the government for such laws since October 2003. I think the political turmoil in the country is to be blamed. Main focus of Nepal government has been on resolving the political problem plaguing the country for more than a decade. It is quite reasonable. Peace and political stability should always be the first priority.
We have not asked for anything special but the recognition of our capital investment on par with FDI, intellectual contribution or knowledge and skill transfer on part with capital investment, legal definition of NRN and People of Nepali Origin (PNO), property rights of PNOs and a visa-free regime for people holding PNO cards. But one should not consider them as our demands for special treatment. Many countries have already implemented such provisions and incorporated their non-resident citizens in their countries’ socio-economic transformation. Being late-comers, we have an added advantage to learn from their rich experience.
Critics say you are pressurising the government and the parties to bring NRN laws without details and in-depth studies of pros and cons of the law. Why you want the law so fast? Doesn’t it need detailed analysis and experiences from other countries?
Am I pressuring the government and want the law so fast? In the first Global Conference held in Kathmandu in October 2003 the government had promised to bring the NRN bill within 4 months. It has yet to fulfil its promise. Did we not have enough time to study pros and cons of the law, experiences of other countries since then? The government promulgated the NRN Ordinance 2062 on the eve of the Second Global Conference in October 2005 but that was quite discriminatory and was immediately rejected by the NRN community.
After spending 36 tireless months and umpteen meetings with media and civil society representatives, bureaucrats, politicians, ministers and prime ministers and after getting full support, assurance and empathy from all of them, we are unable to get the law. It is indeed disappointing. If you term the expression of that frustration as ‘pressure’, then it is quite unfair.
In which areas do NRNs have interest for investment in Nepal ?
There is no wheel to invent. Obviously, a country endowed with unbelievable natural beauty and linking two rising economies with a joint population of 2.5 billion people has a very attractive service sector. Tourism clearly is the leader. Similarly, our water resources can attract a lot of investment from both NRNs and other foreign investors. These sectors are attractive not only for their huge potential but also satisfy Nepal ’s development needs. Many NRNs have shown interest in developing IT infrastructure, healthcare facilities, education institutions, etc.
How can Nepali people benefit from your business here? How much you vow to invest here?
When capital investment comes to the country, the benefits are obvious. It creates jobs, help push the development agenda, bring new technologies, generate revenues for the country, and the list goes on. How much can I vow? No entrepreneur can answer such direct questions. It depends on numerous factors: ‘what will be the country’s political situation? What is going to be the status of private property? Are we going to stick to the norms of free market economy?’ It also depends on how far we can remove bureaucratic hurdles. Economic viability of potential projects is a very influential factor to make investment decisions. Without having clear answers to these fundamental questions no one can commit significant capital investments in Nepal at this critical transitional period.
Despite these apparent difficulties, overseas Nepalis have been investing in Nepal for a long time. The total investment so far has exceeded US$150 million and it has created jobs in media, tourism, healthcare, education, construction, hydro-power, communication and banking sectors in the country. This, I think, is a significant achievement of the NRN movement, which has inspired overseas Nepalis to get involved in the economic activities of our motherland.
What is the purpose of 100 million dollar Nepal Investment Fund (NIF)?
The concept of Nepal Investment Fund (NIF) was developed with a vision to involve as many NRNs as possible in the economic development of Nepal . So, NIF is a kind of mutually created fund for the benefit of both Nepal and overseas Nepalis. Nepalis abroad with limited resources can also participate in the fund. Our preliminary plan is to invest 50 percent of the fund in sectors like road construction, hydropower and infrastructure development in Nepal , while the rest will be invested in other countries. It is not a charity but a profit making venture. So, we will identify and invest only in financially viable areas.
We also believe that our investment will raise confidence in other foreign and internal investors. So, NIF is expected to create a positive overall effect in the economy.
Can you state the NRN’s investments in social sector so far?
Many NRNs have been doing various philanthropic contributions. We have constructed a US$140,000 Kriyaputri Bhawan in the Pashupatinath temple complex and handed it over to the Pashupati Area Development Trust in October last year. First phase of the construction of a Bridhashram in Devghat has been inaugurated recently. This project will be completed by the next NRN Conference in 2007 and costs around US$125,000. One of the ICC advisors has been running an orphan welfare organization in Kirtipur municipality; others have constructed schools, colleges and libraries. We have committed ourselves to help create a public library in Kathmandu . Many NRNs have been providing scholarships to school and college students. We have also committed ourselves to implement at least one social project in each district in collaboration with local communities by mobilizing different Home District Associations of overseas Nepalis. It sounds ambitious but a strong tie with Nepal begins from our emotional attachment to our villages, towns and districts. Such projects do not need huge funds and their implementation will not be complicated if we locate appropriate partners in Nepal . Furthermore, we are planning to announce donation of personal computers to government-owned secondary schools in some districts as a pilot project. If the outcome is encouraging, it will be replicated to many other districts.
Help Nepal Network run by some young and energetic Nepalis living in different countries is a remarkable project that amply demonstrates what Nepali diaspora can do even with limited resources if it is united.
How can you guarantee that there won’t be money drain from Nepal like ‘brain drain’ when the laws are adopted?
At this time and age, brain drain and money drain are not relevant terminologies anymore. We have to contemplate more on brain gain and capital gain. Let us think positively. Did not India have similar concerns? But look at the contribution of NRIs in that country. In any case, we have not asked for anything more than what has already given to FDI.
Earlier, you have demanded for voting rights for NRN in CA polls. Do you still argue for that? Further, do you also demand that you have right to vote in every general elections?
Yes, we still do argue for our voting rights in CA election. It is very important. It is going to decide the fate of our nation. And being Nepali citizens we have the right to cast our votes in the CA polls. However, voting in general elections could be difficult technically. In my general understanding dual citizenship increases our ties with and adds a lot of responsibilities towards the motherland, but it automatically may not provide the voting rights in general elections.
A personal question: you are alleged to have alienated with royalties when you started Spice Nepal . What is your relation with the royal family?
Let me tell you frankly, I have no close relation with the royal family. The royal son-in-law was my business partner in Spice Nepal , but that happened due to a technical reason. When I found a foreign partner company interested in investing in mobile telephone sector in Nepal , we had to get the license. But the license was already acquired by the son-in-law and that was how we got connected. He has already sold all his shares to us and thus this chapter is closed as far as the Spice Nepal is concerned. Many people say I also have close links with UML and NC. But that is true. I do have many friends in both parties.
Believe me no one needs to secure space here for investment at this time because from the business point of view, unfortunately, the current political instability and uncertainty makes Nepal not a very attractive place for investment. There are obvious reasons. But as mentioned above it has not stopped us from already investing considerable sum here. I or rather NRNs are here because we love our country. My mantra is “As long as the country remains destitute, our personal prosperity is meaningless”. New developments taking place in Nepal pave the way for reconciliation and a lasting peace in the country. This is the time for Nepalis from Nepal and abroad to join hands and concentrate on building a shattered and wounded nation. The country needs one more revolution, but this time in the form of a peaceful economic transformation. NRNs with their intellectual and financial resources as well as the global exposure have a responsibility to seek a more pro-active role in Nepal ’s modernization. Together we are a significant force and we must remain focused and committed to the welfare of Nepal . That is the message of this year’s NRN Day. nepalnews.com Oct 10 06
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