July 14: Investment Board Nepal (IBN) on Thursday signed a Memorandum of Understanding (MoU) with German-based DIAG Industries GmbH for the preparation of the Detailed Feasibility Study Report for the establishment of a chemical fertiliser plant in Nepal.

Chief Executive Officer of Investment Board Nepal, Sushil Bhatta, and Managing Director of DIAG Industries GmbH, Benjamin Becker, signed the MoU on behalf of their respective organisations.

Issuing a statement on Thursday, IBN said its 50th board meeting held on March 31, 2022, had decided to issue a survey licence to DIAG Industries GmbH as per the provision of the Public Private Partnership and Investment Regulation, 2020.

Likewise, the 53rd board meeting of Investment Board Nepal held on April 13, 2023, had endorsed the MoU draft to be signed with the German company.

According to the MoU, DIAG Industries GmbH will have to submit the Detailed Feasibility Study Report (DFSR) within 24 months following the issuance of the survey licence.

“The latter shall select the appropriate technology from among natural gas, electrolysis (with carbon capture storage) or hybrid (both natural gas and carbon capture) during the study for production of at least 700,000 tonnes of chemical fertiliser (urea) per annum at a total initial estimated cost of USD 714 million,” reads the statement.