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Thu, March 28, 2024

Govt sets guidelines for motorcycle assembly plants

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KATHMANDU: The government has made it mandatory for investors wanting to set up motorcycle assembly plants in the country to ensure certain domestic value addition, employment generation and environmental standards. A number of assembly plants, mostly electric vehicle plants with Chinese investment, have been registered, according to the Department of Industry (DoI). As per the notice issued by the DoI on Tuesday, a motorcycle assembly plant must ensure domestic value addition of at least 10 per cent in the first year and at least 30 per cent within five years. A motorcycle plant also needs to create at least 50 jobs in the first year and at least 200 jobs within five years and ensure the use of 10 per cent domestic materials in vehicle assembly within five years. "An examination in regard to environment and safety standards will be done by a committee involving relevant stakeholder agencies such as the Department of Environment, Department of Transport Management and Department of Industry," the notice said. The conditions have been set as per the authority given to the DoI by the law, the department has stated. Director general at the DoI, Jiblal Bhusal was quoted in Xinhua News as saying, "The logic behind these conditions is that Nepal should benefit from vehicle assembly plants set up in the country in the areas of domestic value addition and employment after the government provides various tax exemptions for such plants." He added that his agency is also setting up standards for four wheeler plants now. "The conditions will be more or less the same," he explained. For now, Nepal fully relies on imported vehicles, particularly those from India. As its market is growing, Nepal is attracting more foreign investors, including those from its northern neighbour that has registered at least 20 electric vehicle plants in the country since 2015, according to the Department of Industry. READ ALSO:
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