Ban on Indian firms set to lift

Indian business houses in Nepal may soon restart their operations as the Nepalese government has reportedly worked out a pact with trade unions for opening the 12 companies that were shut down three weeks back.

This is also expected to have a positive impact on the 35 firms that were asked to cease operations from tomorrow.

Nepalese ministers are likely to address the industry heads on the progress in negotiations. This follows Colgate-Palmolive restarting operations yesterday.

Terming the uncertainties a "temporary phase", Nepalese Minister for Industry and Commerce Ishwar Pokharel said the government was working towards constituting a peace committee, which would create a strategic roadmap to deal with such threats. The committee would work in a time bound manner, he added.

As a short-term solution, the government is in talks with trade unions to help the companies run smoothly, he said. Pokharel was heading a six-member delegation at a meeting with the Federation of Indian Chambers of Commerce and Industry (Ficci).

Nepal Prime Minister Sher Bahadur Deuba, who is heading a 24-member delegation to India, will address a joint session of the Confederation of Indian Industry (CII) and the Ficci.

Admitting that the recent threats had affected the country's exchequer, he said the government was trying to bring economy back on the rails. The government would focus on creating better investment climate, he added.