Kathmandu, June 27: With the export of an increase in refined soybean oil, an edible oil industry is set to be established in Janakpur with an Indian investment worth Rs 6.57 billion.

The 64th meeting of the Investment Board has approved India's 'Vinayak Oil Industries' to set up an industry in Janakpur. According to board spokesperson Pradyumna Prasad Upadhyay, the industry will be operated in partnership with Nepali businessman the Tibadewala Group.

He informed that the proposal has been submitted with the majority ownership of the proposed industry being held by the Indian company Vinayak Oil and Fats Pvt. Ltd.

A proposal for an investment structure has been submitted to the board, with Binayak Oil holding 67 percent of the industry and the Nepali side, Tibadewala, holding 33 percent. A mutual understanding (MoU) has also been signed between both parties to establish the industry.

Nepal has recently been importing crude soybean oil, which is required for the production of edible oil, from countries like Argentina, Brazil, Indonesia, Iraq, Thailand and Ukraine. Most of the oil products processed in Nepal are exported to India. "A proposal has been submitted to refine not only soybean but also mustard and sunflower oil to produce six oil-based products," said spokesperson Upadhyay.

It is stated that with the establishment of the industry, edible oil will be processed in Nepal and various products will be brought to the market. As per the initial plan, Kolkata-based Tibadewal Group will bring in direct investment through its Janakpur unit. The investors have made preparations to move forward with the process of infrastructure construction, machinery installation and production start-up soon.

People’s News Monitoring Service.