Kathmandu. KATHMANDU: The government has revised the provision related to ‘automatic route’ by further easing the process of approval of foreign investment. The Ministry of Industry, Commerce and Supplies has implemented the new provision as per Clause 42 (1) of the Foreign Investment and Technology Transfer Act, 2075 by a notice published in the Nepal Gazette.

According to the published notice, foreign investment will now be allowed through the automatic route in the specified industries and business sectors. There is no maximum limit for the investment to be allowed under this provision. In the case of information technology-based industries, the minimum investment limit will not be applicable while giving approval through automatic route.

This decision of the government is expected to directly benefit the information technology, innovation-based start-ups, service sector and technology transfer industries. It is believed that it will help attract small and medium-sized foreign investors as the approval process will be reduced and administrative complexities will be reduced.