An agreement has been reached between the Investment Board of Nepal and a Malaysian company to study the feasibility of opening a urea fertilizer plant in Nepal.

The board has informed that an agreement has been reached with Malaysia’s Rinkolasdon Bhd Company for a detailed feasibility study of such a factory, which is proposed to be established at Ambukhareni in Tanahun.

According to the board, a detailed study will be conducted on the possibility of producing urea fertilizer through electrolysis, a technology with electrical energy.

On Wednesday, Executive Director Sushil Bhatt of the Board and Managing Director Boumehidi Abdelali of Rincolasdan BHD signed a partnership agreement during an event.

According to the agreement, the company has to submit a detailed feasibility report of the project to the board within 2 years.

There is a proposal to invest over NPR 34 billion in the industry that aims to annually produce approximately 95,600 metric tons of green ammonia and 286,975 metric tons of urea.

The Malaysian company submitted a proposal for a feasibility study in December 2022.

The Board of Investment’s meeting on 13 April 2023 decided to grant the permit and the draft of the study was approved on 24 August.