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Nepal builds first IT park with Indian help
Wednesday, 14 April 2004, 19:30 IST
KATHMANDU: Nepal's first IT park, to be operational from July, will aim to give Bangalore a run for its money - with Indian help.
Located in Banepa in Kavrepalanchowk district, 30 km east of here, the IT Park, besides facilitating the promotion, development and export of computer software and other ICT (information and communication technologies) related products and services, would also aim to attract investment by international agencies.
"Organisations like Infosys can set up a small centre there," says Atma Ram Ghimire, member secretary of the High Level Commission for IT set up about seven months ago under the chairmanship of Prime Minister Surya Bhadur Thapa to prioritise the project.
However, in the early stages, the IT park's USP, Ghimire says, will be the production of skilled ITC personnel from Nepal.
"Nepal has a huge pool of manpower," he says. "ITC institutions here produce nearly 5,000 graduates a year. With manpower costs going up in India, if Indian companies come here, it would be more cost-effective for them."
The nearly 12-hectare park will have a business incubation centre to nurture Nepalese youngsters who have bright ideas but lack management or funding capability.
The idea is to showcase them before foreign companies looking to set up base in the Himalayan kingdom.
Unlike most Nepalese development projects, which have foreign donors, the Nepali 
220 million IT park is being funded entirely by the government.
The only foreign presence for now is going to be that of a consultant, who should combine management and business and marketing skills with technical know-how.
The commission has asked the Indian embassy in Kathmandu to help make the recruitment from India, preferably by May.
By June, the government will put together its business plan for the park, which would spell out the special facilities to be offered to foreign investors.
They promise to be considerable as otherwise, as Ghimire says pragmatically, "Why should people choose Nepal over India and Bangladesh?"
Once the business plan is finalised, the commission hopes to have Indo-Nepal forums in both the countries as a kind of road show for ICT companies.
Besides India, Japanese companies have shown interest in setting up base in Nepal as well as some German and Dutch organisations.
However, some formidable hurdles have to be crossed first.
The nearly eight-year-old Maoist insurgency that has resulted in escalated violence since August 2003, and a recent anti-government protest started by a coalition of five opposition parties could mar the park's prospects.
Last week, during a three-day shutdown called by the Maoists, bombs were exploded on the park's grounds. It was followed by a four-day blockade of the district and construction supplies could not reach the site.
"The park is targeted at Indian and other foreign investors," Ghimire admits. "The government is looking into the security aspect but if these disruptions continue, they would undoubtedly scare away investors."
Source: IANS
220 million IT park is being funded entirely by the government.
The only foreign presence for now is going to be that of a consultant, who should combine management and business and marketing skills with technical know-how.
The commission has asked the Indian embassy in Kathmandu to help make the recruitment from India, preferably by May.
By June, the government will put together its business plan for the park, which would spell out the special facilities to be offered to foreign investors.
They promise to be considerable as otherwise, as Ghimire says pragmatically, "Why should people choose Nepal over India and Bangladesh?"
Once the business plan is finalised, the commission hopes to have Indo-Nepal forums in both the countries as a kind of road show for ICT companies.
Besides India, Japanese companies have shown interest in setting up base in Nepal as well as some German and Dutch organisations.
However, some formidable hurdles have to be crossed first.
The nearly eight-year-old Maoist insurgency that has resulted in escalated violence since August 2003, and a recent anti-government protest started by a coalition of five opposition parties could mar the park's prospects.
Last week, during a three-day shutdown called by the Maoists, bombs were exploded on the park's grounds. It was followed by a four-day blockade of the district and construction supplies could not reach the site.
"The park is targeted at Indian and other foreign investors," Ghimire admits. "The government is looking into the security aspect but if these disruptions continue, they would undoubtedly scare away investors."
Source: IANS