By A Staff Reporter
Kathmandu, Aug. 7: The Nepali Army (NA) has expressed its desire to invest around Rs. 60 billion of the Army Welfare Fund.
Although the existing laws and military Act and Regulation bar the NA to have its own investment in Nepal’s mega development projects, the only national army of the country has repeatedly been showing interest in investing on development infrastructure initiative of the government.

The Directorate of Army Welfare Fund has stated that necessary homework is underway to make the Military Act, 2063 more investment friendly.
Following the participation of the first Nepali Army contingent, Purano Gorakh Battalion, in Egypt in 1974, a fund was set up with Rs. 12.4 million – creating the basis for the currently existing Army Welfare Fund.
A peacekeeper earns USD$ 1,428 a month, out of which 2 per cent of the amount is deducted and then deposited in the fund, as per Brigadier General and Spokesperson for Nepali Army Headquarters Shantosh Ballave Poudyal.

At a press conference held by the Directorate last week at the Army Headquarters, Major General Ratna Prakash Thapa, Chief of Judge Advocate General’s (JAG) Department or Legal Department, expressed his inclination towards amending the law to make it permissible for the army to invest some of the amount directly from the fund. “The military Act-2006 does not allow direct investment in the current situation. We are allowed to have investment in the given sectors only as promoter,” Thapa said.

“We have held numerous discussions and even drafted the vision of the investment to the government several times but the response hasn’t been positive, that is, until now,” he said during the press conference.
The Army Welfare Fund Operation and Management Committee is chaired by the Chief of the Army Staff and consists of seven members, including Prime Minister and two nominated ex-servicemen (officer level), two nominees from the Chief of Army Staff, and one each from the Ministry of Finance and the Ministry of Defence. The Prime Minister will be the custodian of the fund and the Minister of Defense will be the co-custodian.
The Committee has not been able to reach a conclusion despite constant push from Nepali Army over the last four years.

Major General Thapa clarified that the Nepali Army doesn’t wish to get involved independently through direct investment but would like to do so by remaining under the government’s supervision.
Former Finance and Defence Secretary Krishna Hari Baskota said that the fund of the Army should be utilised internally by opening different investment and welfare programmes that benefits their own retired and serving staff.

“If they wish to go beyond their beneficiaries, such fund should be dedicated in the service of larger public access like running petroleum pumps, running public transport,” he said. The Army can also invest in the government-prioritised project like hydropower, bridge construction and tourism and hospital like establishing high altitude hospital in base camp of Mt. Everest, added Baskota.
Former Major General Binoj Basnyat said the investment of the army through the fund should be utilised in the wellbeing of its former and current beneficiaries.

The army had recently planned to invest in the construction of Bhimdang Hydropower Project in Manang, Dudhkhola Hydropower Project in Solukhumbu and Madi Hydropower Project in Rolpa but could not do so due to the legal hurdles.