Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In the fiscal year 2080/81, the approval for foreign investment dividends hit a three-year low. According to the Department of Industry, the authority responsible for granting approvals for dividend repatriation, last year saw a decline in dividend approvals compared to the previous two years.
Last year, the department approved dividend repatriation worth NPR 10.78 billion. After receiving approval from the department, foreign investors receive their dividends through the Nepal Rastra Bank.
In the last two years, the amount of dividends taken by foreign companies investing in Nepal had increased. However, last year saw a decline, as reported by the Department of Industry.
While the amount of money taken out of Nepal as dividends by companies providing technology services and investments decreased, investment approvals reached an all-time high. The department, which had previously approved investments up to NPR 6 billion, approved NPR 70 billion last year. Additionally, the Investment Board, which approves investments over NPR 6 billion, approved NPR 271 billion.
This increase in investment approvals is attributed to investment summits and several reforms during this period, which have attracted investors.
Surya Nepal Leads in Dividend Repatriation Approvals
Among the companies receiving approval for dividend repatriation, Surya Nepal tops the list. India’s ITC, which has invested in Surya Nepal, received approval for NPR 6.25 billion. Surya Nepal, which holds a near-monopoly in Nepal’s cigarette market, has secured the highest dividend approval.
Similarly, Hindustan Unilever received approval for NPR 1.10 billion. Unilever Nepal operates in Nepal, producing cosmetics and other personal care products. The company’s shares are listed on Nepal’s stock market and are among the most valuable.
Additionally, Varun Beverages received approval for NPR 620 million, while Asian Paints and Britannia secured approvals for NPR 210 million each.
Most of the companies receiving dividend repatriation approvals are Indian. However, Ncell, which typically repatriates significant dividends, has faced issues recently, causing a halt in its dividend repatriation.
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