Major Boost for Nepal’s Economy as Global Tycoons Pledge Billions in Investments – South Asia Time

Major Boost for Nepal’s Economy as Global Tycoons Pledge Billions in Investments

 January 22, 2024  

Kathmandu — In a groundbreaking development, Elon Musk, the CEO of Tesla and SpaceX, has proposed a staggering investment of nearly 6 billion in Nepal’s internet sector through his company’s Starlink project. Starlink aims to revolutionize internet connectivity globally through satellite technology.

Meanwhile, Indian billionaire Gautam Adani has expressed his keen interest in investing in Nepal’s aviation and hydropower sectors. During a recent meeting with Nepal’s Minister of Finance, Dr. Prakash Sharan Nepal, Adani revealed plans to invest in the construction of the Nijgadh Airport, the operation of the Gautam Buddha Airport, and the ambitious 1902-megawatt Mugu-Karnali hydropower project.

To showcase their commitment, Adani is set to attend the upcoming Nepal Investment Conference on April 28 and 29, while Mukesh Ambani, India’s richest man, has pledged to send a high-level study team to explore opportunities in Nepal’s tourism sector.

The surge in foreign investment is evident in Nepal’s economic landscape, with the Reserve Bank reporting a substantial increase. In the first five months of the current fiscal year (September to November), Nepal received foreign direct investment amounting to 3 billion 92 million rupees, surpassing the previous fiscal year by an impressive 3 billion 31 million rupees.

Elaborating on Musk’s proposal, the Ministry of Communications and Information Technology’s spokesperson, Netra Subedi, stated that a thorough study would precede any decision on SpaceX’s Starlink service. The proposal suggests improving internet service in Nepal through satellite technology, addressing challenges faced in rural areas due to the country’s diverse geography.

Gautam Adani’s investment plans include the Nijgadh Airport, estimated at 65 billion, the operation of Gautam Buddha Airport, and the development of the Mugu-Karnali hydropower project. Adani’s commitment to these projects signals a significant economic boost for Nepal and underscores the country’s attractiveness to global investors.

Experts view these proposals as not only transformative for Nepal’s infrastructure but also as a positive message to the global community, showcasing the country as an attractive destination for substantial investments.