Himal Press 
KATHMANDU: The Office of the Investment Board Nepal (OIBN) has signed a memorandum of understanding (MoU) with DIAG Industries of Germany to conduct a detailed feasibility study for establishing a chemical fertilizer plant in Nepal.
After reviewing the proposal submitted by DIAG Industries, the 50th meeting of the IBN granted permission to the German company to conduct the feasibility study. The draft of the MoU was approved during the 53rd meeting of the IBN held in March.
According to the MoU, DIAG Industries will be required to submit a Detailed Project Report (DPR) to the OIBN within two years.
DIAG Industries has proposed to produce 700,000 tons of chemical fertilizers (urea) annually. The estimated cost for a plant of this capacity is $714 million.
The budget for the fiscal year 2023/24 includes a program to prepare a DPR for the establishment of a chemical fertilizer plant under a public-private partnership model.
The annual demand for chemical fertilizers in Nepal is approximately 800,000 tons.
