Govt unveils IAP for Economic Development and Prosperity

The government on Thursday unveiled Immediate Action Plan for Economic Development and Prosperity, saying that it will help achieve higher growth, create jobs and establish social justice.

However, except for promising tax incentives to agriculture, tourism and private investors in the upcoming Investment Year 2012/13, the Immediate Action Plan (IAP) contains few new initiatives. “It has largely repackaged the already existing programs using new terminologies,” commented a government secretary.

For instance, the IAP categorizes 11 large-scale projects as Projects of National Pride and promises uninterrupted fund availability for them. “We will also create an environment whereby locals, workers and project staff will not strike under any pretext to ensure their smooth implementation,” said Prime Minister Baburam Bhattarai, who unveiled the IAP amid a function Thursday.

Interestingly, 9 out of 11 projects were already labeled as National Priority Projects and governments in the past as well as present had pledged similar support for them.

The two new projects in this list, however, are Budhi Gandaki Hydropower Project and development of North-South Highways in the Koshi, Gandaki and Karnali regions. “We will develop the detailed project report (DPR) of Budhi Gandaki within a year,” said Bhattarai.

Under the new programs, the government has adopted an ambitious target of attracting US$ 1 billion worth of foreign investment in the country in the remaining six months of this fiscal. It has also committed to felicitate all investors who invest Rs 2 billion in the country. Continue reading →