Chancellor of the University of Nepal Bindu Nath Lohani on Sunday flagged six major bottlenecks hindering investment in Nepal, calling for a shift in the government’s role from gatekeeper to partner.

Speaking as the keynote speaker at the 31st annual general meeting of the Nepal-India Chamber of Commerce and Industry (NICCI), Lohani said unclear transition, regulatory fragmentation, multiple agencies, overlap among local authorities, lack of accountability and weak contract enforcement were discouraging investors.

Addressing the session titled “Strengthening the ecosystem for scaling Indian investment in Nepal”, the former Asian Development Bank vice president said investment decisions depended on predictable policies, speed and reliability. He warned that capital would bypass Nepal if uncertainty persisted.

He also urged NICCI to provide structured and regular feedback to the government to improve the investment climate.

The AGM featured a panel discussion on “Private sector collaboration in investment and cross-border power trading”, moderated by engineer Lalkrishna KC. Panellists discussed the growing scope for private sector participation in power trading.

Arunachal Pradesh Power Corporation Managing Director Neha Aggarwal shared India’s experience of intra- and inter-country power trading. Electricity Regulatory Commission Chair Ram Prasad Dhital outlined regulatory provisions and recent legal developments, while Nepal Electricity Authority Managing Director Hitendra Dev Shakya welcomed private sector involvement in power trading.

Indian Embassy First Secretary (Commerce) Suman Shekhar highlighted Indian investment in Nepal, particularly in hydropower, and invited Nepali power producers to participate in India Energy Week in January.

Former Indian ambassador to Nepal Manjeev Singh Puri said Nepal needed to identify markets and incubate new private players to capitalise on its hydropower potential.

Deputy Chief of Mission at the Indian Embassy Rakesh Pandey spoke about embassy initiatives to strengthen Nepal–India economic relations.

NICCI executive member and IPPAN vice-president Uttam Bhlone Lama said Nepal had emerged as a major hydropower producer and that the private sector was now focusing on high-capacity transmission lines.

Inaugurating the AGM, Finance Minister Rameshore Prasad Khanal said the private sector must better understand market access mechanisms and added that NICCI could play a key role in strengthening ties between Nepali and Indian investors.

Khanal also presented certificates of appreciation to the highest tax-paying NICCI members, including Bhotekoshi Hydropower, Soaltee Hotel, Unilever Nepal, Dabur Nepal and Raj Bahadur Shah as the highest individual taxpayer. He also launched a baseline survey report on Nepal’s fruit candy (titaura) industry, highlighting its export potential and role in promoting women-led micro, small and medium enterprises.

In his closing remarks, Industry, Commerce and Supplies Minister Anil Sinha said foreign direct investment had increased in several sectors.

NICCI President Sunil KC outlined the chamber’s activities over the past year and its plans ahead. Leaders of FNCCI, CNI and NCC highlighted NICCI’s role in strengthening bilateral trade and economic relations between Nepal and India.