Nepal has endorsed a Foreign Direct Investment (FDI) proposal worth 140 million US Dollars made by China's Huaxin Cement Company to establish a cement plant in Nepal in partnership with Narayani Cement Company.

A high-level meeting of the Investment Board of Nepal (IBN) chaired by Prime Minister Khadga Prasad Sharma Oli made such a decision on Sunday evening in Kathmandu, according to a press release issued by the IBN secretariat. This is the second FDI proposal from China to Nepal this year.

In July this year, Nepal endorsed a FDI proposal worth 360 million US dollars made by China's Hongshi Holdings Limited to establish a cement plant in Nepal in partnership with Nepal's Shivam Cement.

That was the largest FDI proposal from China. The two companies signed an agreement in March to set up a cement plant in Nepal.

According to Nepal's Cement Manufacturers' Association, there are over 40 cement plants in this Himalayan nation and domestic products only account for 85 percent of the total consumption in this country.