Kathmandu. The Banking Sector Reform Advisory Task Force has suggested the Nepal Rastra Bank (NRB) to join hands with the government for the development of physical infrastructure.
In the report submitted by the task force, it has been suggested that the Nepal Rastra Bank should join hands with the government for the development of physical infrastructures. In this regard, 10 suggestions have been made in the report.
Here are the suggestions
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- To suggest the Ministry of Finance to involve the private sector in metro rail in Kathmandu Valley, gas extraction in Dailekh and iron extraction in Dhaubodi. To keep the loans taken for the construction of such industries in the priority areas and to provide concessions.
- Interested municipalities shall provide concessions in the risk burden and loan loss arrangement as the loan to be provided by Solid Waste Management for the production of fertilizer and electricity falls in the priority sector.
- to facilitate the construction of transmission lines by the private sector.
- Repeal the Banking Offences and Punishment Act and boost the morale of honest bankers.
- To take initiative for the registration of land and mortgage on the same day.
- To strengthen the concerned mechanism of the Government of Nepal to carry out the environmental clearance within the time, to make arrangements to provide loans at concessional rates.
- Compensation claim payment of loans secured from the Deposit and Credit Guarantee Fund should be made within 2 years from the date of last payment of the loan and if any installment of the loan is exceeded in the bad category, compensation can be taken from the fund.
Many roads in the Tarai/Madhes connecting India are good, but the roads connecting Rara, Pokhara, Muktinath÷Korola, Kathmandu, Rasuwagadhi, Tatopani and Sagarmatha (trekking, cable car, helicopter, etc.) are not of good quality.TAG_OPEN_li_27 The private sector will coordinate with the Government of Nepal to construct these roads in boot model. The private sector will collaborate with good companies including China and India to construct roads of international standard. The Rastra Bank will keep the loans taken for the construction of these roads in priority areas and provide the mentioned concessions. Alternatively, the government of Nepal will provide long-term loans to the willing and capable private sector by setting criteria and providing loans at 4-5 percent in competition. Looking at the cost of Melamchi Water Supply Project, Pokhara Airport, Bhairahawa Airport, Electricity Project, etc., the government is not yet capable of making quality projects at affordable prices. Until the mechanism of the Government of Nepal is capable, the government will not spend capital from the private sector as far as is practical. Like the Power Purchase Agreement of electricity, the Road Purchase Agreement or the private sector will be allowed to collect the road fare and the Rastra Bank can facilitate in this work.
If the municipalities interested in building a smart city (clean and with all modern facilities) work in coordination with the private sector, they will be able to provide the affected loan in the priority areas and provide the facilities accordingly.TAG_OPEN_li_25 Nepal Rastra Bank will coordinate with the Government of Nepal to allow foreigners to buy houses in such municipalities. Work from home is the practice all over the world and because of our good weather, there is a possibility of attracting NRN/foreign nationals working in rich countries.
To coordinate with the Government of Nepal to repeal the provision of land ceiling (necessary amendment to the Land Act, 2021).TAG_OPEN_li_24
