Energy Projects Attract Rs 4 Billion FDI

Kathmandu: Nepal’s energy sector attracted foreign investment commitments worth Rs 4 billion for two projects during the first quarter of the current fiscal year, accounting for 24.6 percent of the country’s total FDI commitments.

According to the Department of Industry (DoI), Nepal received total FDI commitments of Rs 16.23 billion during the first quarter. The significant share secured by the energy sector indicates strong potential to attract foreign capital into power projects through appropriate policies and investment-friendly regulations.

However, overall FDI commitments declined sharply compared to the same period last fiscal year. Nepal received Rs 35.13 billion in FDI commitments between mid-July and mid-October of FY 2025/26, more than double the amount pledged during the review period of the current fiscal year.

The DoI approved FDI worth Rs 5.10 billion in the last month alone, with 94 foreign-invested firms registered during the period. Of these, 88 were registered through the automatic route.

Most foreign-invested firms registered during the first quarter were small-scale industries. The DoI reported the registration of 417 small-scale, two medium-scale and three large-scale industries during the period.

All firms registered last month were classified as small-scale industries.