Alternative Energy
Industry
Bigger Solar energy and Wind energy investments don’t
exist yet, but could be interesting to look at.
Floriculture
Due to the variations in climate, topography and vegetation,
Nepal has a diversity of ornamental plants and flowering
plants, which could be cultivated to promote export
oriented business. The flower industry is presently
concentrated in the Kathmandu valley.
The commercial development of floriculture is still
in a early stage. Out of nearly 25 flower growers,
only 3 have entered export business up to now. The
development of tissue culture initiated by the National
Herbarium and Plant Laboratory at Godavari is opening
up opportunities
for mass production of flowers, which could be exported
from Nepal. Already tissue culture method of propagation
has been successfully developed in the production
of orchids and other cut flowers. Some of the orchid
genera have been successfully developed. Among the
other cut flower species carnations and chrysanthemums
have also been developed. Prospects for the development
of floriculture business are good especially for the
following species of orchids: cymbidiums dendrobiums,
calanthe, coelogyne. Similarly in other cut flowers
carnations, gerbera, rose, gladiolus, primulinus,
iris polyanthes, chrysanthemum, narcissus tazella
offer very good prospects. It seems also to be feasible
to introduce the commercial development of exotic
orchids-paphiopedilun, cattelya, cattelya hybrids,
arachris, epidendron, mokara, oncidium and odontoglossums;
exotic cut flowers-tulipa, anthurium, alstroemeria,
freesia and gysophila.
Foreign collaboration for the development
of floriculture to provide technical know-how for
cultivation of flowers is required to meet the standards
demanded in international markets and to provide guidance
in market identification and development. The
availability of direct flight connections to Frankfurt,
London, Dubai, New Delhi, Singapore and Hong Kong
offer good prospects for the development of a profitable
export oriented floriculture business in Nepal.
Flowers Seeds
Due to varying agro-climatic conditions Nepal is in
an unique position to produce a wide variety of flowering
seeds which could be sold in international markets.
In the summer season zinnia, marigold, gladiolus,
salvia, dahlia, canna are grown extensively. In winter
and spring most of the annual flowers such as bellies,
dianthus, pansy, antirrhinum, helichrysum, aapaver,
verbena, sun flower and so on are grown.
The potential for seed production of the following
varieties, in particular, has been identified as being
very good: anemone sp., aster, chrysanthemum morifolium,
elsholtzia californica (california poppies), lathyrus
odoratus (sweet pea). The availability of varied climatic
conditions and inexpensive labour provide Nepal a
comparative advantage to produce flower seeds at low
cost. Commercial production and export of flower seeds
require maintenance of high technical standards and
good supervision. Technology and expertise
of foreign companies could be effectively employed
to develop this profitable agro-business in Nepal.
Fruit Processing
Nepal is endowed with good ecological conditions for
the cultivation of a variety of fruits. At present
citrus fruits, apple, banana, pineapple, mango, pear,
litchi, guava, peach, plum and apricot are available
in sufficiently large quantities. Plans are also underway
to increase the area under cultivation through commercial
fruit development programs. The total quantity of
fruits produced is estimated around 500,000 Mt. Fruit
processing industries consume a fair proportion of
total production. Two important fruit processing industries
are engaged in the production of fruit squash, fruit
juice, jams, jellies, marmalades, and fruit salad.
Some of these products are exported from Nepal. Opportunities
exist for the setting up of industries to process
fruits for sale in export markets as fruit juices
and squash, jams and jellies and fruit based special
liquors.
Hydro Electric Power
Nepali and foreign companies have invested roughly
US$300mio in small and medium-sized projects since
1996. Faced with acute power shortages, Nepal began
luring investors by offering them tax and duty concessions,
even commitment to purchase every unit of electricity
generated. The long-term Build Operate and Transfer
(BOT) contracts come with a 15-year tax holiday, a
one-percent import duty on equipment, sales tax exemption
on machinery and parts, and waiver of licence fees.
Theoretical hydropower potential of Nepal's rivers,
based on average flows has been estimated at 83 million
kilowatts, which is one of the largest potentials
in the world. Despite the enormous hydropower potential,
till now Nepal has been able to generate only 261.9MW
of hydropower which is 0.3% of its total hydropower
potential. Demand for power is growing at about 10%
annually. At present electric power supply is available
to only 14% of the population. It is expected that
the country's power demand will grow to 1.64million
kilowatts by 2015. A large amount of power produced
in Nepal can be easily exported to neighboring countries.
Nepal Electricity Act of 1993 provides access for
the sale of its power to other country and also for
the import of power from other country. Nepal and
India entered into a Power Trade Agreement, which
allows independent mutual power deals on government,
semi government and private sector levels between
two countries.
Hydropower Potential
Average annual flow : 225 Billion QM
Theoretical Generation Capacity : 8300ON1W
Economically Feasible Capacity : 44000 MW
Existing hydropower Generation : 262 MW
Demand by 2005 : 610MW
Integrated Dairy Industry
Nepal is a net importer of dairy products. The import
of milk products-powder, condensed concentrate, butter,
cheese-is estimated to exceed Rs.120mio per annum.
Despite these imports there is a severe shortage of
fresh milk, infant milk and other milk products in
the country. Nepal has a long tradition in dairy farming.
In fact Nepal has in the past exported milk products
to India and Tibet in the form of ghee. She could
develop the dairy industry to meet domestic demand
as well as renew exports to India and other markets.
The topographical and climatic conditions are well
suited to dairy development. An integrated dairy industry
incorporating related activities such as improved
livestock breeding, cattle feed production and processing
of milk products would offer promising prospects for
profitable investment. Such a project could build
up on existing small dairy units spread around the
country through a well organized program of extension
services to improve livestock breeds and an efficient
collection system for processing in a central unit.
Medical & Aromatic plants
Nepal is very rich in medicinal and aromatic plants
with over 700 plants species. The collection of such
plants from wild sources has been practiced since
ancient times. With the establishment of the Royal
Drugs Research Laboratory in 1962 the commercial utilization
of medicinal plants has been encouraged. More than
300 species have been screened and studied and extraction
of diosgenin, reserpine, alkaloids of belladonna,
glycosides of digitalis, lemon grass oil, rosin, turpentine
and menthol has commenced. Nepal, a traditional exporter
of crude herbs, is now gradually emerging as an exporter
of processed herbs and aromatic plants. In recent
times commercial cultivation of medicinal plants such
as atropa belladona and aromatic plants such as palmarosa,
lemon grass, citronella and mentha arvensis have assumed
importance. Recent studies also indicate good prospects
for the cultivation and processing of chrysanthemum
cinerariaefolium (pyrethrum), claviceps purpurea (Ergot),
digitalis lanata, eucalyptus camaldulenisis, glycyrrhiza
flabra, mucuna pruiens, piper longum and valeriana
wallichi.
The medicinal and aromatic plants can be exploited
for the production of following: essential oils from
lemongrass, citronella, palmarosa and mint, oleoresin
from ginger, large cardamons, timur and tejpat; turpentine
oil and rosin from chir pine; medicines from valeriana
wallichii, calamus acrous and nardostachye jatamanshi.
In addition to traditional medicines and essential
oils, herbs and essences also have a potential as
a raw material for the production of cosmetics and
perfumes, herbal teas and natural health products.
Mushroom Cultivation
Many varieties of edible mushrooms are found in a
wild state in the Terai lowlands, the hills and mountains
of Nepal. Two rare varieties similar to European types
known as "Guchchi" and "Yarsha Gumba"
are found in the hills and mountains under natural
conditions. Among the cultivated varieties, agaricus
bisporus, pleorotus spp and volvariella are important.
The temperature and humidity conditions necessary
for growing agaricus bisporus (button mushroom) are
very satisfactory in the hilly regions during some
seasons. The pleorotus spp. (oyster mushroom) and
volvariella (paddy straw mushroom) grow easily during
most seasons. The Kathmandu valley has temperature,
humidity and other biological factors suitable for
the cultivation of these two varieties of mushrooms
throughout the year. The plant Pathology section of
the Department of Agriculture's research station at
Khumaltar (Kathmandu valley) is producing mushroom
spawn. This unit has well qualified staff to undertake
research, spawn production and for extension work.
The potential for mushroom production on a commercial
scale is good especially with a view to marketing
overseas as fresh mushroom, dried mushroom and canned
mushroom.
Pharmaceutical Industries
Nepal has a large and growing demand of drugs and
pharmaceuticals out of which around 20% are produced
locally and the rest is imported. Prospective companies
may benefit by setting-up of a manufacturing plant
or marketing pharmaceuticals or initiating bulk drug
production for the whole country. The market for pharmaceuticals
is estimated to be more than Rs5,0bn. Much of the
demand is supplied by India based national and multinational
companies. The demand for pharmaceutical is expected
to increase significantly over the next decades due
to an ongoing improvement of modern health care facilities.
Good prospects exist for the establishment of a few
industries producing formulated drugs. The best areas
for immediate investment are in the production of
the major high volume product lines of Essential Drugs
out of National List of Essential Drugs, categorised
by Ministry of Health Department of Drug Administration.
Processing of Spices
Nepal produces a large variety of spices such as ginger,
timur, large cardamom, turmeric, medicinal spicy herbs,
himali cummin, cinnamon, garlic and a variety of chillies.
Most of the spices cater to domestic demand and some
items like chillie, tumeric, garlic, ginger and cardamom
are exported to India and other markets in a raw form.
The estimated production of major spice items in 1990
was 92,000 metric tonnes.
Good prospects exist for the setting up of spice processing
industries using automatic, dehydration, cleaning
and packing technology to export increased value added
products. The export market potential and value as
indicated in a recent study reveal the following:
Market Potential and Value ( US$ in Millions)
Saffron(33,000mt.) (12.6)
Chillie(8,000mt.) (21.1)
Cardamom oil(50mt.) (15.4)
Coriander(5,900mt) (6.5)
Tumeric(1,600mt) (4.0)
Foreign collaboration is required to provide
technical know-how for processing and packing and
to secure marketing outlets.
Real Estate development
only for Nepali
Sericulture
The development of sericulture has been identified
as offering very good potential for development in
the mid-hills and Terai belt of Nepal by experts from
Japan, Korea, China and India. Agro-climatic conditions
in these areas favor the cultivation of mulberry and
the rearing of cocoons. The Government has set up
a nucleus centre at Khopasi about 35 km. east of Kathmandu
in 1975.
The centre initially served as a demonstration centre
and later expanded its activities to provide training,
extension and research functions. In 1991/92 it will
also function as a major silkworm egg breeding station.
Nepal has developed six bivoltine lines and these
will be used to produce hybrid silkworm eggs in the
country. The preferred production technology in Nepal
is the temperate bivoltine technology which is simple
and easily adaptable by small farmers.
On a very preliminary assessment mulberry cultivation
could be extended over an extent of 6000 hectares
which could yield around 350 tonnes of raw silk and
85 tonnes of waste silk. The value of silk fabric
from this level of production could exceed Rs. 1800
mln. Private investment to encourage mulberry cultivation
and cocoon rearing by small farmers could be developed
successfully in Nepal. Post cocoon activities involving
reeling, twisting, weaving and production of items
out of silk fabric could be developed as medium-scale
industries.
Service Industry
May be interesting to look at
Air and sea freight forwarding services
Private hospitals including medical colleges
Tourism Industry
Cable car complexes
Rafting equipment
Hot air ballooning and para-sailing equipment
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