NADA Delegation Urges Government for Policy Reforms in Automobile Sector
A representative delegation led by the Chairman of NADA Automobiles Association of Nepal (NADA), Karan Chaudhary, met with the Honorable Minister of Finance, Mr. Barshaman Pun, to discuss various issues.
During the meeting and discussions, Chairman Chaudhary urged the need to make Nepal's automobile business more dynamic and presented suggestions prepared in the context of the Economic Year 2081/82. Additionally, during these discussions, Secretary of NADA, Surendra Kumar Upreti, also presented 20 policy suggestions necessary for the upliftment of Nepal's automobile business.
In line with the concept of Make in Nepal discussed during the meeting, automobile entrepreneurs emphasized advancing towards industrialization, focusing on import substitution and employment creation. They highlighted the establishment of CKD plants for manufacturing vehicles. They suggested increasing the Loan to Value Ratio from 50% to 75% to secure industrial investment and boost entrepreneurs' morale for long-term success. It was suggested that the government seriously consider this proposal.
Furthermore, NADA suggested reducing the risk of higher purchase loans, a major obstacle in investment in the automobile sector, by reducing the collateral from 125 to 100% and ensuring the stability of the current 25 lakh capital requirement at 50 lakhs.
In the same vein, NADA also urged the government to address the unauthorized import of spare parts, tires, and lubricants, which has continuously been undermining the business of legitimate entrepreneurs. They emphasized the need for strict scrutiny, even beyond the borders, to prevent such activities, and the government assured to take necessary action.
At the end of the discussion, Honorable Minister Barshaman Pun, expressed interest and concern regarding the policy suggestions raised by NADA and assured that the government would take the necessary initiatives. Present at the discussion were Tejnarayan Sah, Deputy Chairman of NADA Pradesh, Secretary Vikram Sinha, Treasurer Milan Babu Mall, Joint Treasurer Pankaj Agrawal, and Association Secretary Surendra Pradhan.
