Kathmandu: The Non-resident Nepali Association (NRNA) launched a Rs 10 billion fund that aims at generating capital to invest in Nepal's mega infrastructure development.

Finance Minister Bishnu Prasad Paudel officially inaugurated the fund named ‘NRNA Development Fund’ amid a program organized at the Ministry of Finance (MoF) on Monday. The MoF is investing 5 percent in the investment pool. While the NRNA is investing 10 percent of the shares, 85 percent will be collected from non-resident Nepali individuals.

Speaking at the program, the chairman of the NRNA Development Fund Upendra Mahato said they have planned to increase the size of the fund to US $ 1 billion. “The fund to be operated in the modality of a holding company is expected to help channelize remittance in the productive sector,” he said.

Finance Minister Paudel said the NRNA members need to bring capital through a formal banking channel to invest in the fund that will be spent in development of the national pride projects.