By Ajay Chhetri, Kathmandu, Dec 28: The government has taken initiatives to establish an industry and investment promotion fund.

A meeting of the Cabinet held on 23 December decided to establish the fund under section 51 (1) of the Industrial Enterprises Act 2020.

Industrial Enterprises Act 2020 has envisaged an industry and investment promotion fund for the promotion and protection of industrial investment.

The fund will be created from the amount received from the government, local persons or organizations, returns of investment of micro, cottage, and small enterprise development fund, loan disbursement fund, technology development fund, female entrepreneurship development fund, venture capital fund, sick industry rehabilitation, restructuring, and management fund and grant and assistance from a foreign country, international organization.

The fund will be spent for the development of micro-industry, cottage industries, development of technology, industrial promotion, rehabilitation, re-institutionalization, and management of sick industries, development of women entrepreneurship.

Spokesperson of the Ministry of Industry, Commerce, and Supplies, Narayan Prasad Regmi, said that initiative has been taken to implement the Act by formulating a working procedure for the establishment of industrial and investment promotion funds.

He also said that all other existing funds will be integrated into this fund. He said the main objective of the fund is to promote and protect small and medium-sized enterprises.