Reliance withdraws Rs 20 billion investment plan after failing to secure land

Mukesh Ambani’s Reliance Industries, a company led by one of the world’s wealthiest individuals, has withdrawn its plan to invest Rs 20 billion in Nepal. The decision comes after the company failed to secure 80 bigha of land for an industrial village in the Simara Special Economic Zone, located in Bara district, Madhesh Province.Reliance Industries had proposed to establish an industrial village based on the ‘Gujarat model’ within the special economic zone. According to an employee of the Special Economic Zone Authority, the company had been making continuous efforts to acquire the land for over a year. However, the government led by Prime Minister Balendra Shah was unable to guarantee the land’s availability, leading to the company’s decision to pull out.Today, the 68th meeting of the Investment Board Nepal, chaired by Prime Minister Balendra Shah, approved investments totaling approximately Rs 21 billion for two semi-reservoir hydropower projects. The board sanctioned an investment of Rs 10.75 billion for the 58.9-megawatt Nar Khola Semi-Reservoir Hydropower Project and Rs 10.42 billion for the 46.72-megawatt Sani Bheri-3 Semi-Reservoir Hydropower Project.The Investment Board also decided that the 900-megawatt Arun-3 Hydropower Project aims to commence commercial production by February 2028. For the 900-megawatt Upper Karnali Hydropower Project, the board resolved to facilitate the immediate advancement of construction in accordance with the provisions of the project development agreement.Further decisions from the meeting include delegating necessary authority to the Chief Executive Officer of the Investment Board’s office to facilitate project implementation and investor services. The board also instructed its office to make legal provisions for advancing unsolicited proposals through a competitive ‘Swiss Challenge’ method when necessary. Additionally, investment proposals for infrastructure projects based on artificial intelligence and other innovative information technologies will be prioritized, considering their contribution to renewable energy utilization and job creation in Nepal.The meeting was attended by key officials, including Finance Minister and Vice-Chairman of the Investment Board Dr. Swarnim Wagle, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha, Minister for Agriculture, Forest and Environment Geeta Chaudhary, Minister for Industry, Commerce and Supplies Deepak Kumar Sah, Vice-Chairman of the National Planning Commission Dr. Gunakar Bhatta, Chief Secretary Govinda Bahadur Karki, Nepal Rastra Bank Governor Dr. Bishwanath Poudel, and Investment Board CEO Yanki Ukyawal.The primary reasons behind Reliance Industries’ inability to secure the land, the challenges faced by the Balendra Shah government in ensuring land availability, and the specific impact of this withdrawn investment on Nepal’s industrial development remain unclear. The current status of land availability in the Simara Special Economic Zone is also not yet known.