Government to Invest in Nepal Reinsurance Company's Rights Shares, Paving Way to Meet Rs 20 Billion Paid-up Capital

Kathmandu. The government has given in-principle approval to invest in additional rights shares of Nepal Reinsurance Company, which is owned by the Government of Nepal. A meeting of the Cabinet on Tuesday took this decision.

Due to the government's failure to decide on additional investment, Nepal Reinsurance Company had been unable to issue rights shares for capital growth for a long time.

With this decision, Nepal Reinsurance Company will be greatly facilitated in achieving the target of meeting the minimum paid-up capital of Rs 20 billion set by the Nepal Insurance Authority. The current paid-up capital of Nepal Reinsurance is Rs 13.42 billion.

With the government's in-principle approval to add capital, it is believed that the company's financial base will be further strengthened. This will significantly enhance the company's risk-bearing capacity and further elevate its credibility in international and domestic markets.

Experts believe that expanding the capacity of the domestic reinsurance company will help retain the risks of the country's large infrastructure, hydropower, and industrial projects within the country and also reduce the amount of premium flowing abroad.

The government's decision will prove to be an important milestone for this company, which has been under pressure to meet the paid-up capital as per the regulatory directive of the Insurance Authority. Further details regarding its formal implementation and the modality of share investment are now expected.

The Cabinet meeting also made other important decisions. On the proposal of the Ministry of Finance, the meeting decided to accept a concessional loan of 285 million US dollars and a grant assistance of 20 million US dollars from the Asian Development Bank (ADB) for road improvement.

Similarly, the meeting decided to include nano fertilizer, biostimulants, and bio-organic and organic fertilizers produced and distributed commercially for agriculture in the list of essential substances and to approve the 'Fertilizer Control Order, 2083'.

Likewise, it was decided to grant approval to a high-level delegation to participate in the 31st Conference of the Parties (COP 31) to the United Nations Framework Convention on Climate Change, to be held in Antalya, Turkey, from Kartik 23 to Mangsir 4, 2083.

A decision was made to authorize the publication of a notice in the Nepal Gazette to extend the deadline for landowners and tenants of land under tenancy to apply for land distribution until Kartik end of 2085, and the deadline to complete the distribution and settle the process until Ashad end of 2086.

Furthermore, the Cabinet meeting also decided to recommend to the Right Honorable President the issuance of an ordinance to amend the Press Council Act, 2048, and an ordinance to amend certain Nepal Acts including Culture, Tourism, and Civil Aviation.