I used to think about putting money in iron ko chhad factory. A friend of mine brought me an offer, and it seemed like the firm would yield 30~60% per year. The political instability does hit these sectors, but not as high as we think. But obviously, because of lack of corporate culture, putting money on such thing is totally based on personal relationship. Ditto about hydropower sector. I invested some money on it--but the return is estimated to be around 20% per year after 5 years. 20% return is a lot from the point of American banks, but it is not as much as it sounds, given the bank interest rate is as high as 16%. I also think hydroproducers are being targetted by local population and politicians, while NEA gives trouble in signing PPA.

I think there is a good future for corporate firms that specialize in hospitality industry. If we set up good hotels along the trekking route, I think the return will be high. The govt has also identified 30 industries as infant industries and want to promote them. Obviously, there will be profit in those industries. But it is not clear how an ordinary Nepali can invest on them, and how the government or stock exchange will safeguard their investment. I think food processing industries also have a great future in Nepal, and so does road construction companies (the demand for toll road is acute). My view is political bottleneck and lack of confidence in our old leadership is to be blamed for it, but I hate to blame politicians for everything--primarily because it has become a trend. I am fairly certain that there wil lbe 20~30% returns in these sectors. I have seen some of my friends make tons of money in the sector that has ready local market such as food and fertilizer for chickens and animals..

I also hope to hear from some of the guys who were involved in land trading in KTM and who used to frequent sajha...