GENERAL FUNCTIONING

OF
FEDERATION OF NEPALESE CHAMBERS OF
COMMERCE AND INDUSTRY

An Internship Report

Submitted By:
ASHMITA GAUTAM
BBM 8th Semester
Exam Roll No: 850/15
T.U. Reg. No: 7-2-25-951-2015
Nepal Commerce Campus

In the Partial fulfilment of the Requirement for the Degree of

Bachelor of Business Management

Submitted To:

Dean Office, Faculty of Management

Tribhuvan University, Kathmandu, Nepal
September, 2019
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DECLARATION

I hereby declare that the internship report entitled “General Functioning of Federation of
Nepalese Chambers of Commerce and Industry” submitted to Nepal Commerce Campus,
Faculty of Management, Tribhuvan University is my original work done for the partial
fulfillment of the requirement of Bachelor in Business Management (BBM) under the
supervision of respected teacher Mr. Mahendra Aryal. This report is my own original
work and I undertake the full responsibility.

Ashmita Gautam
BBM 8th Semester
Nepal Commerce Campus
Date: September, 2019
i
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ACKNOWLEDGEMENT

This internship report entitled “General Functioning of Federation of Nepalese Chambers

of Commerce and Industry” is prepared for the partial fulfillment of the requirement for
the degree of Bachelor in Business Management (BBM) course in Nepal Commerce
Campus (NCC) operating under affiliation of Tribhuvan University (TU) and governed
by Faculty Of Management (FOM) I would thus like to thank TU and NCC for providing
me with an opportunity to be involved in the internship program which gave me the real
time exposure to the work environment and bridge the gap between theoretical learning
and practical understanding to some extent.

A number of people have contributed to the completion of this report. I would like to
thank Mr. Mahendra Aryal the program Director of BBM at NCC. I would also like to
thank Mr. Gopal Prasad Tiwari, the Director General of Federation of Nepalese
Chambers of Commerce and Industry (FNCCI), Teku for granting me the permission to
work in the organization. I express my sincere thanks to Mr. Udaya Bohara my
operation incharge during the internship. I would like to show my immense gratitude to
Mr. Lokraj Joshi, Mrs. Bimala Baral, Mrs. Anu KC, Mr. Kop Prasad Tiwari, Mr.
Devraj Thapa and other staffs of Federation of Nepalese Chambers of Commerce and
Industry for their cooperation and guidance throughout my internship period.

Most of all, I take this opportunity to express profound gratitude and deep regards to my
report supervisor, Mr. Mahendra Aryal for his exemplary guidance, monitoring and
constant encouragement throughout the preparation of this report.

Finally, I would like to thank my parents for their never-ending support. I am very much
grateful to them for always being there by my side. I am grateful to all those people who
have helped me directly and indirectly during the internship period and in the preparation
of this report.

Thanking You
Ashmita Gautam
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TABLE OF CONTENTS

DECLARATION...............................................................................................................................i

ACKNOWLEDGEMENT................................................................................................................ii

TABLE OF CONTENTS................................................................................................................iii

LIST OF TABLES............................................................................................................................v

ABBREVIATION...........................................................................................................................vi

CHAPTER I......................................................................................................................................1

INTRODUCTION............................................................................................................................1

1.1 Background.............................................................................................................................1

1.2 Objective.................................................................................................................................3

1.2.1 General Objective............................................................................................................3

1.2.2 Specific Objective............................................................................................................3

1.3 Methodology...........................................................................................................................3

1.3.1 Organization Selection.....................................................................................................4

1.3.2 Placement:........................................................................................................................4

1.3.3 Duration of Internship......................................................................................................5

1.3.4 Activities done:................................................................................................................5

CHAPTER 2.....................................................................................................................................8

INTRODUCTION TO TRADE AND COMMERCE INDUSTRY.................................................8

2.1 Background of Trade and Commerce Industry:.....................................................................8

2.2 Origin of Trade and Commerce Industry:...............................................................................8

2.3 Introduction to Business Association:....................................................................................9

2.4 Challenges and Opportunities of Trade and Commerce Industry.........................................13

CHAPTER 3...................................................................................................................................14
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INTRODUCTION OF FEDERATION OF NEPALESE CHAMBERS OF COMMERCE AND

INDUSTRY....................................................................................................................................14

3.1 Background:..........................................................................................................................14

3.2 Introduction...........................................................................................................................15

3.3 Vision, Mission, and Objectives...........................................................................................15

3.4 Functions:..............................................................................................................................16

3.5 Organizational structure........................................................................................................16

3.6 Membership Structure...........................................................................................................17

CHAPTER 4...................................................................................................................................19

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED.............................................19

4.1 Activities Performed in Different Department of FNCCI:...................................................19

4.1.1 Export Promotion Committee:.......................................................................................19

4.1.2 Road transport & transit committee:..............................................................................20

4.1.3 Tax & revenue committee:............................................................................................21

4.1.4 Cottage & small industry committee:............................................................................21

4.1.5 Education & skill development committee:...................................................................22

4.2 Problems Faced and Solved:.................................................................................................23

CHAPTER 5...................................................................................................................................24

CONCLUSION AND LESSON LEARNT....................................................................................24

5.1 Conclusion............................................................................................................................24

5.2 Lessons Learnt......................................................................................................................25

Bibliography...................................................................................................................................27
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LIST OF TABLES

Table 1.1 Placement and duration of Internship...........Error! Bookmark not defined.

Table 1.1 Duration of Internship.......................................................................................................5

Table 1.2 Activities done..................................................................................................................5

Table 3.1 Board of Directors of FNCCI

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ABBREVIATION

FNCCI : Federation of Nepal Chamber of Commerce and Industry

NCC : Nepal Chamber of Commerce

CNI : Confederation of Nepalese Industries (CNI

UN : United Nation

WIPO : World Intellectual Property Organization

ICT : Information and Communications Technology

NRNA : Non-Resident Nepali Association

ICC : International Chamber of Commerce

GDP : Gross Domestic Product

LDC : Least-Developed Countries

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CHAPTER ONE

INTRODUCTION

1.1 Background

Nepal is developing country correspondingly trade is crucial to developing and least-

developed countries (LDCs) for a variety of reasons. Firstly, it is often the principal
mechanism for achieving the benefits of globalization. Secondly, the continuing
reallocation of manufacturing activities from industrial to developing and LDCs provides
many opportunities for expanding trade both in goods and in services. Acknowledging
the significance of trade in the economic development process, Nepal has been shifting
towards liberal and market-oriented trade policy since the mid-1980s that was
accompanied by various reform programs in 1992. The policymakers in Nepal have
based their trade liberalization policies on a set of two hypotheses: a) liberalization of
industrial and trade policies will boost industrial efficiency by providing greater access to
imported intermediate inputs, capital goods, and technology, exposing local producers to
both internal and international competition, thereby forcing them to lower costs, and
removing curbs on the growth and size of firms so as to exploit the scale economies; and
b) improvement in efficiency and the subsequent reduction in costs will stimulate
domestic demand and enable Nepal’s industrial goods to compete abroad, thereby
relaxing demand-side constraints on industrial growth.

More than fifty years ago, when Nepal was awakening to a changed open and more
inclusive political environment, setting up indigenous commercial enterprises,
manufacturing plants of its own and linking the economy to external as well internal
markets was but inevitable. The entrepreneurial aspiration of the private sector had
started finding expressions in setting up commercial ventures big and small all over the
country especially in the Terai. Those were the days of controls, foreign exchange was in
short supply, the supply chain mainly consisted of import from India. Industrialization
had just started taking roots. There was no experience of economic governance in the
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bureaucracy. All policy formation and decision making were centralized. But the private
sector believed in future opportunities, therefore, there was a sudden outburst of
commercial activities backed by conducive incentives and policies by the government.

In this environment replete with commercial opportunities, possibilities and viabilities a

need was felt for an chamber of commerce and industry which could co-ordinate and
direct the interests of Nepali businesses, and advocate on behalf of the legislate laws
which were favorable for the growth of the private sector. The Chamber Movement in
Nepal kicked off after 1950 (2007) revolution which ended the hereditary rule of Rana
Prime Ministers. In 1950s, businessmen’s Associations and local Chambers came into
existence in major urban towns like Biratnagar, Birgunj and Kathmandu to form an apex
body which will not only co-ordinate the existing set-ups but also give fillip to a much
wider and larger chamber movement.

Thus, various business association in Nepal were born such as Nepal Chamber of
Commerce (NCC), Federation Nepalese Chamber of commerce and Industry (FNCCI)
and Confederation of Nepalese Industry (CNI).

This internship report is based on the internship done in Federation of Nepalese

Chambers of Commerce and Industry (FNCCI) at Teku in Export Promotion committee,
Road transport & transit committee, Tax & revenue committee, Cottage& small industry
committee and Education & skill development committee.

While Tribhuvan University (TU) the pioneer university in Nepal providing management
education since its establishment has been providing an excellent management degree
under Faculty of Management (FOM) and among them one of the outstanding
developments is in the form of Bachelor in Business Management (BBM), a newly
launched 4 years, 8 semester courses and 120 credits hour in total.

For the partial fulfillment of the requirements for the degree of Bachelor in Business
Management (BBM), every eighth-semester student should prepare an internship report
after the completion of the two months internship in the institution based on the
experience gained and knowledge of the institution. The eight-week period began from
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25th Baisakh, 2075 to 26th Asadh, 2076. As an intern, it was a privilege to perforce various
activities to perform data collection and analysis on import and export of Nepal,
comparing budget and financial bill of fiscal year 2019/20, analysis of spread rate, Cash
Reserve Ratio of SAARC Countries and support workshop on intellectual property rights,
analyze the effect of Budget and Economic Bill 2076 and web - based vehicle and
consignment tracking system.

1.2 Objective

The objectives of this study can be categorized into two groups:

1.2.1 General Objective

 To fulfill the Bachelor of Business Management (BBM) degree requirement under
the Faculty of Management, Tribhuvan University.

1.2.2 Specific Objective

 To acquire exposure in the working environment resulting in the development of
practical knowledge, confidence and diplomacy.
 To know the working protocols of FNCCI related to protecting and defending the
rights and interests of the businesspersons.
 To have insight with conducting and participating on National and International
seminars, workshops, trade fairs, exhibitions and meetings.
 To be acquainted with various ways of strengthening local chambers and
associations and procedures for lobbying with the government.
 To be a valuable asset for FNCCI by contributing positive aspects.

1.3 Methodology

This internship report is the study of particular subject backed by the collection,
compilation, presentation and interpretation of relevant information. It starts from the
selection of the organization for the internship, performance of different kinds of
activities and placement in different parts of the organization and last collection of
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various primary and secondary data for the preparation of the report. Methodology have
helped to analyze the findings in meeting the objectives of the study.

1.3.1 Organization Selection

The beginning phase of an internship program begins with a selection of suitable
organization by the intern as per the requirement. As the selection of BBM specialization,
Intern choose Entrepreneurship as prior course, thus selection of a relevant organization
was very important. Bachelors graduates see banking career to be most lucrative,
however Intern decided to go for FNCCI that provides the great opportunity to learn and
gather experience about real commercial environment that would be very helpful for
enhancing the knowledge about real world privatization scenario.

Taking into consideration the numerous options available for the internship, various pros
and cons of each of the alternatives was thoroughly analyzed. After discussions with
various teachers and faculties, FNCCI, the apex chamber of commerce of Nepal was
chosen for the unique set of advantages it offered. Most importantly FNCCI rotates intern
in various committee to learn about the activities of the FNCCI as a whole. The
Federation was approached dropping recommendation letter of campus.

1.3.2 Placement:
After a week, the date for an intern was informed. Intern was appointed in the
International Relation and Research department- Export Promotion Committee, FNCCI,
Teku, Kathmandu. Intern had several departments to work for and learn the specific
importance and working pedagogy of each committee during the short eight weeks
period. Intern was placed in various committee like Road transport & transit committee,
Tax & revenue committee, Cottage& small industry committee and Education & skill
development committee. The placement and the rotation of placement was changed
according to the need and necessity of each committee.
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1.3.3 Duration of Internship

The duration of internship has been defined for 2 months or 6 credit hours of working
time at the organization by Tribhuvan University (T.U.), Faculty of Management (FOM).
So, in order to fulfill this requirement, an internship was done for two months starting
from 25th of Baisakh to 26th of Asadh 2076 from 11:00 am to 6:00 pm.

Weeks (Period)

Activities 1st 2nd 3rd 4th 5th 6th 7th 8th

Education & skill development

committee and Road transport &
transit committee

Export Promotion Committee

Tax & revenue committee

Export Promotion Committee

Table 1.1 Duration of Internship

1.3.4 Activities done:

Every department needs to perform a different function and intern had the good
opportunity to learn and practice various activities. During the eight weeks of the
internship intern has been involved in various department as explained below:

Table 1.2 Activities done

Department Activities done
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Road transport & 1. Participated on Interaction Program on web - based vehicle and
transit committee consignment tracking system, conducted on FNCCI
Secretariat, Teku on 2019 May 20th.

Export 2. Kept record and made analysis of Export and Import data of
Promotion Nepal with World.
Committee 3. Conducted and Represented on a National Consultation
Meeting on Technological Capacity Building for Strengthening
Trade Capacity and Economic Competitiveness through
Enhancing the Role of Intellectual Property program organized
by the World Intellectual Property Organization (WIPO), in
cooperation with the Department of Industries, Ministry of
Industry, Commerce and Supply, Government of the Federal
Democratic Republic of Nepal and the Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) held on FNCCI
Secretariat, Teku dated June 10th and 11th ,2019.
4. Updated Statistical book for 2019.
Tax & revenue 5. Made a review on the changes made on budget of fiscal year
committee 2019/ 20 by comparing the previous and current year budget in
the field of income tax, Value Added Tax (VAT), Excise Duty
and Customs as announced by Ministry of Finance.
6. Joined Interaction program on the effect of Budget and
Economic Bill 2076.
7. Analysis of spread rate, Cash Reserve Ratio (CRR) and
Statutory Liquidity Ratio (SLR) of SAARC Countries.
Cottage & small 8. Organized and supervised “Laghu, Gharelu tatha Sana
industry Udhyami haruko Prabardanatmak Gosthi” conducted in a
collaboration with Nepal Government and Kavre Udhyog
committee Banijya Sangh on June 7th, 2019 at Gautam Villa Resort,
Banepa.
Education & skill 9. Volunteered Spelling Bee Program, a national level
development competition held on May 21st, 2019 organized with the
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committee collaboration of U.S. Embassy and ihub (a joint venture of

FNCCI and U.S. Embassy).
10. Participated on “Introduction Program on Digital Library”
organized by The Asia Foundation and hosted by ihub dated
2019, May 29th.
11. Participated on “Vermicomposting and Rooftop Farming
Management Training” jointly organized by NCDS and ihub
on 30th May 2019.
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CHAPTER TWO

INTRODUCTION TO TRADE AND COMMERCE INDUSTRY

2.1 Background of Trade and Commerce Industry:

Trade exists due to specialization and the division of labor, a predominant form
of economic activity in which individuals and groups concentrate on a small aspect of
production, but use their output in trades for other products and needs Trade exists
between regions because different regions may have a comparative advantage (perceived
or real) in the production of some trade-able commodity—including production of natural
resources scarce or limited elsewhere, or because different regions' sizes may
encourage mass production. In such circumstances, trade at market prices between
locations can benefit both locations. Retail trade consists of the sale of goods
or merchandise from fixed location, online or by mail, in small or individual lots for
direct consumption or use by the purchaser. Wholesale trade is defined as traffic in goods
that are sold as merchandise to retailers, or to industrial, commercial, institutional, or
other professional business users, or to other wholesalers and related subordinated
services.

2.2 Origin of Trade and Commerce Industry:

Some commentators trace the origins of commerce to the very start

of transactions in prehistoric times. Apart from traditional self-sufficiency, trading
became a principal facility of prehistoric people, who bartered what they had for goods
and services from each other (the barter system was popular in ancient times where one
could get goods and services by offering the other person some other good and service
according to their need instead of paying with monetary systems, which developed later).
In historic times, the introduction of currency as a standardized money facilitated the
wider exchange of goods and services. Numismatists have collections of tokens, which
include coins from some Ancient-World large-scale societies, although initial usage
involved unmarked lumps of precious metal.
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The circulation of a standardized currency provides a method of overcoming the major

disadvantage to commerce through use of a barter system, the "double coincidence of
wants" (which means if you want something from a person, that person should also be in
need of a thing or a service which you can provide), necessary for barter trades to occur.
For example, if a person who makes pots for a living needs a new house, he/she may
wish to hire someone to build it for him/her. But he/she cannot make an equivalent
number of pots to equal this service done for him/her, because even if the builder could
build the house, the builder might not want many or any pots. Also, the barter system had
a major drawback in that whatever goods a person get as payment may not necessarily
store for long amounts of time. For example: if a person has got dozens of fruits as his
payment, he/she can't store fruit for long or they may rot - which means a person will
have to bear a huge loss. Currency solved this problem by allowing a society as a whole
to assign values and thus to collect goods and services effectively and to store them for
later use, or to split them among minions.

During the middle Ages, commerce developed in Europe through the trading of luxury
goods at trade fairs. Some wealth became converted into movable wealth or capital.
Banking systems developed where money on account was transferred across national
boundaries. Hand-to-hand markets became a feature of town life and were regulated by
town authorities.

Today commerce includes as a subset of itself a complex system of companies which try
to maximize their profits by offering products and services to the market (which consists
both of individuals and groups and other companies or institutions) at the
lowest production cost. A system of international trade has helped to develop the world
economy; but, in combination with bilateral or multilateral agreements to lower tariffs or
to achieve free trade, has sometimes harmed third-world markets for local products.

2.3 Introduction to Business Association:

The business association meaning refers to membership organizations that are engaged in
and supports the business interests of their members. A business association provides its
members with opportunities to network and share information and resources. While some
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businesses that belong to an association are likely to be competitors, they still share
certain needs and preferences. In other cases, association members can help one another
directly with referrals for services such as accounting, building maintenance, recruiting
staff and marketing. Joining a business association provides a new business owner with
contact information for other local businesses, speeding up the process of integrating into
the community. Business associations allow members to join forces politically. While
most associations have no specific party affiliation or political agenda, the political issues
that affect business owners are among their concerns. The result of participating in a
business association, whatever immediate benefits it provides, should be an improvement
in an area's business climate. As business owners get to know one another they find ways
to share resources, unite on important issues and develop new tools for securing their
profitability in the community and creating an atmosphere that encourages competition
and attracts customers. With effective leadership and adequate participation, a business
association can make it easier for its members to make money and also enjoy the process.

There are different types of business association in Nepal. Some of them are as
follows:

i. Nepal Chamber of Commerce

Nepal Chamber of Commerce established in 1951 is the oldest and first chamber of
commerce in Nepal. It is the first Chamber of Commerce in Nepal and one of the most
pro-active and forward-looking Chambers in the country today. (Chamber, 2017)

The first conference on Industry and Commerce was organized by Nepal Chamber of
Commerce in 1955 AD. Since its establishment the chamber has been playing a crucial
role in the field of trade enhancement and other promotional activities related to
economic enhancement. Nepal Chamber of Commerce has been providing suggestion
and cooperation to government of Nepal in the formulation of rules and regulation for
industrial, commercial and other fiscal related matters. Apart from the Nepal chamber of
commerce is dedicated in expanding chamber movement and promoting various activities
for the empowerment of business sector. It is also performing role of bridging between
private and government sector. Nepal Chamber of Commerce is represented by District
Chambers of Commerce, Commodity Associations and Bi-National Chamber of
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Commerce. Ordinary members and registered firms and honorary members from trade
and industry sectors are also affiliated with us. Nepal Chamber of Commerce has
established district chamber in 77 districts of the country having 16 thousand ordinary
members. Nepal Chamber of Commerce has established relationship with 60
International Chamber of Commerce through Memorandum of Understanding. More than
100 commodities Associations and Bi-National Chambers are attached with Nepal
Chamber of Commerce.

At present, it has more than 1,600 ordinary members and more than 8,000 registered
firms are affiliated to it. The Chamber organized the First National Conference on
Industry and Commerce in 1955. Being located in Kathmandu, the capital city of Nepal,
the Chamber has been playing an important role in the field of trade promotion and also
in the formulation of commercial, industrial and fiscal policies of Government of Nepal.
It has good relationship with international organization i.e. WTO, UN. It conducts
seminar and training related to business and economy collaboration.

ii. Federation Nepalese Chamber of commerce and Industry

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is the
nationally and internationally recognized umbrella organization of business in Nepal.
Organized as a representative body of business organizations in the country, it represents
the interests of the private sector and is involved in promotion of socio-economic
development of Nepal through private sector led economic growth. It was established in
1965 with the aim of promoting business and industry while protecting the rights and
interests of business and industrial communities FNCCI has been playing a key role in
promoting business and industry in the country. It provides, inter alia, information,
advisory, consultative, promotional and representative services to business and
government and organizes training / workshop / seminar on a regular basis. The highest
policy making body of the FNCCI is its General Assembly which generally meets on an
annual basis. The activities and functions of the FNCCI are planned and managed by the
Executive Committee consisting 74 members including President and 5 nominated
members who have tenure of three years (As per the Fifth amendment of FNCCI
Constitution). Immediate Past President is the ex-official member of this Committee. The
 12

Executive Committee elects Vice-Presidents and constitutes the Councils and various
Committees and Forums. It also appoints Director General who heads the FNCCI
Secretariat. It is the largest private sector organization in Nepal and has more than 10,000
direct and indirect members. Direct members are most big business houses and corporate
companies of Nepal as well as few multinational companies that have production
facilities in the country.

iii. Confederation of Nepalese Industry

The Confederation of Nepalese Industries (CNI) is a professionally led manufacturing
and service sector industry centered apex body of the large and medium scale industrial
community of Nepal. It has a membership base consisting of nearly all of the big
corporate houses of Nepal, Nepalese blue-chip companies, joint venture companies etc.
spread across a wide and diversified spectrum constituting sectors related to
manufacturing, information, communication and entertainment, banks and financial
institutions, insurance, travel tourism and hospitality, utilities, infrastructure and
construction etc. The organization focuses on larger businesses which are the substantial
sector leaders of today’s economy. This includes businesses from all sectors (with local
or foreign investments) and is all-encompassing in terms of geography as well as the
nature of the business, be it manufacturing, tourism, financial services, exports or
infrastructure. The apex body of Nepalese industrialists, the Confederation of Nepalese
Industries (CNI), was established by the captains of Nepal’s Industrial and Corporate
sector on April 17, 2002. Since its establishment, CNI has been raising issues like the
persistent economic situation imbroglio, need for reforms in financial sector,
strengthening of private sector's capabilities, the streamlining of private sector's initiation
on development agenda, double digit growth issues and industrialization based on trade
competitiveness. It is an organization that works in coordination with other organizations
and is increasingly becoming involved in areas where the existing system has failed to
deliver. The organization is working along the lines of several organizations in various
developing countries such as India, Japan, Thailand, Malaysia, etc. and hopes to hire
expertise as well as bilateral support in development of the Confederation, the theme of
which is, “Talking Business, Talking Change”.
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2.4 Challenges and Opportunities of Trade and Commerce Industry

Challenges:

The challenges of Trade and Commerce Industry can be illustrated in following points.

 Political instability of the country.

 Trade and Commerce policy of the Government.
 Globalization: The world has converted into a single village. So, it’s a tough
competition for survival.
 Technology: Any sector without technology is like body without flesh. So, it must
use feasible technology for its operation and must be updated time to time.
 Hefty excise duty imposed on imports of products and services.

Opportunities:

 Increase in National GDP.

 Increase in literacy and living standard.
 Provide better knowledge and insights of trade and commerce for international
growth.
 Wide scope of international linkages and regional cooperation.
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CHAPTER THREE

INTRODUCTION OF FEDERATION OF NEPALESE CHAMBERS

OF COMMERCE AND INDUSTRY

3.1 Background:

The story of evolution of FNCCI resembles that of a celebrity who has risen from rags to
riches. A need was felt for an apex chamber of commerce and industry to replete with
commercial opportunities, possibilities and viabilities which could co-ordinate and direct
the interests of Nepali businesses, and advocate on behalf of the legislate laws which
were favorable for the growth of the private sector.

Thus, FNCCI was born and in the year 2025, Chaitra 28 (10 April 1969) got the formal
recognition from the then Ministry of Home Panchayat and was formally registered under
Rashtriya Nirdeshan Ain 2018 B.S. It had sole objective of promoting and protecting the
business interests of the private sector of Nepal. In English translation it was always
called a Federation of Nepalese Chambers of Commerce and Industry, in Nepali prefix of
“MAHASANGH (Association of Associations)” was added only in the year 2049.

Working from a rented office in Kathmandu, the dedicated office bearers of the then
FNCCI carried forward the fulfilling of the goals of the apex body admirably. Despite
resources constraints and infrastructural limitations of the services of the apex chamber
expanded. Today FNCCI represents almost 5 lakh business enterprises across the
country. It is a matter of pride that all the presidents starting from Late Shri Loknath
Joshi who headed the first executive committee of the federation till today (Mrs. Bhawani
Rana) have all been visionary leaders and in their tenures of leadership have taken the
FNCCI to greater heights by bringing about transformational changes in professionalizing
the working style from a traditional set up today’s modern managerial concepts and
structure. In today’s avatar FNCCI is capable of delivering services that are compatible
with the requirement of any futuristic business in the country.
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3.2 Introduction

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), a non-profit

organization is the nationally and internationally recognized umbrella organization of
business in Nepal. Established in 1965,54 years ago with the aim of promoting business
and industry while protecting the rights and interests of business and industrial
communities. It represents the interests of the private sector and is involved in promotion
of socio-economic development of Nepal through private sector led economic growth.

FNCCI provides, inter alia, information, advisory, consultative, promotional and

representative services to business and government and organizes training / workshop /
seminar on a regular basis. It is working to promote Nepalese entrepreneurship and
Nepalese products across the world. It maintains relations with the representative
business associations of various countries of the world. FNCCI is continuously lobbying
to strengthen the political framework conditions for a good business environment in the
country.

3.3 Vision, Mission, and Objectives

Vision

"Leading the Nation's Economic Progress"

Mission:

"Facilitating Nepalese Businesses Become Globally Competitive"

Objectives:

 Promote the economic and social development of Nepal while protecting and
defending the rights and interests of the businesspersons of the entire country.
 Make effective and significant contribution to the development of open market
economy while recognizing the changes taking place in the global arena.
 Act as a supreme representative body of the trade and industry of the country
while supporting the national goals of self-reliant and independent national
economy.
 Foster cooperation with related national and foreign organizations.
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3.4 Functions:

The functions of The FNCCI are determined by its objectives. The work it has
been involved in during the recent past, includes:
 Play a catalytic role in the business, industrial development in the country while
establishing sound industrial relations in the country.
 Reinforce business community's commitment to the society.
 Provide advisory services to government, lobby as and when required in
formulation and execution of business and industry related policies, acts and
programs friendly to the private sector.
 Foster cooperation with related Nepali and foreign Organizations.
 Provide up to date information to the business, government and the country at
large.
 Create awareness and muster business and industry initiatives on issues like
quality, social responsibility, Corporate governance, campaigns against
HIV/AIDS, child labour, environment etc.

3.5 Organizational structure

The highest policy making body of the FNCCI is its General Assembly which generally
meets on an annual basis. The activities and functions of the FNCCI are planned and
managed by the Executive Committee consisting 74 members including President and 5
nominated members who have tenure of three years (As per the Fifth amendment of
FNCCI Constitution). Immediate Past President is the ex-official member of this
Committee. The Executive Committee elects Vice-Presidents and constitutes the
Councils and various Committees and Forums. It also appoints Director General who
heads the FNCCI Secretariat.

For effective day-to-day operation of the FNCCI, there is a Professional Secretariat with
Business Library, Training Unit, Human Resource Development Centre, Database /
Computer Unit, Display Hall and Conference / Meeting Halls besides Office Bearers and
Administrative wings supported by professional and support staff.
 17

Table 3.1 Executive Committee and Members:

Names of Members Designation

Mrs. Bhawani Rana President

Mr. Pashupati Murarka Immediate Past President

Mr. Chandi Raj Dhakal Past President and Distinguished Member

Mr. Shekhar Golchha Sr. Vice President

Mr. Kishore Kumar Pradhan Vice President (Industry Commerce)

Mr. Umesh Lal Shrestha Vice President (Commodity)

Mr. Chandra Prasad Dhakal Vice President (Associate)

3.6 Membership Structure

Registered as a national representative chamber in pursuant of section 3 of the National

Directives Act 1961 (Rastriya Nirdeshan Ain 2018) the FNCCI Membership is as
follows:

 105 District / Municipality Level Chambers in 75 Districts of Nepal (including 1

Observer chamber)
 101 Commodity / Sectoral Associations
 951 Leading public and private sector undertakings
 20 Bi-national Chambers (including 8 observer chambers)
 799 Associate Members.
The FNCCI is represented in almost all national councils / boards / committees / policy
advisory bodies concerned with business and industry.
 18

3.7 Councils/Committees/Forums of FNCCI

The Chamber represents the private sector in many councils. committees and forum.
They are:

COUNCILS:

 Industry commerce council

 Commodity council
 Employers council

COMMITTEES:

 Bank, finance & insurance committee

 Cottage & small industry committee
 Education & skill development committee
 Energy & environment committee
 Export promotion committee
 ICT development committee
 Industry committee
 International investment promotion committee
 Local economic development committee
 Road transport & transit committee
 Tax & revenue committee
 Trade committee
 Trade fair committee
 Tourism & air transport committee
 Urban development committee
 Women entrepreneurship development committee

FORUMS:

 Binational & NRNA cooperation forum

 Film & entertainment forum
 Social service forum
 19

CHAPTER FOUR

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

During eight weeks of internship tenure at Federation of Nepalese Chambers of

Commerce and Industry (FNCCI) changed the thinking prespective of the intern. It
provided the proper guidance for career buliding. Two months at FNCCI was truly a
great experience for intern.A lot of knowledge having practical implication were grabbed
by the intern. Intern has learnt a lot of aspects other than the core organizational activities
such as to socialize with the people, to deal with the senior staff, and to deal with intern
colleagues so as to make the working environment better and friendlier. Intern also learnt
that the behavioral issues are most important inside the organization. Intern found that the
customers are valuable assets of the organization and they feel satisfied when they are
treated properly. The working environment of FNCCI brought great insight of the
Business Regulatory Systems.

4.1 Activities Performed in Different Department of FNCCI:

The intern got the opportunity to work on various departments during the period of
internship. Major activities were performed by the Intern in the International Relation and
Research department. The details of activities performed under those departments are
described here under:

4.1.1 Export Promotion Committee:

Export Promotion Committee is an Export and Import data bank of Federation, and also
publishes annually “Statistical Profile” which reflects the National Economy and
Statistics. This committee also organizes varieties of workshop, training, interaction,
discussion, awareness program etc. related to export and export promotion in
participation of its members. Committee lobbies in policy-making government bodies to
govern feasible act, policies for export promotion as well as for the amendment of
existing act, policies in favor of exporters.
During Export Promotion Committee Intern performed various activities as:
 20

 Data Entry: The intern had to record in detail all the information provided in the
FNCCI through websites and various authorities of government such as Central
Bureau of Statistics, Ministry of finance, Tourism, Industry and commerce, cargo
houses and so on. The intern learnt the proper use of excel and enter the details
precisely.
 Attending National Consultation Meeting: The intern was provided with an
opportunity to attend National Consultation Meeting held on Federation Hall
incollaboration with Nepal Government and World Intellectual Property
Organization- Switzerland.
 Minute Preparation: Every major detail discussed in the meeting should be
included in the meeting minutes. The intern was responsible for drafting a
meeting minute in each meeting. After the preparation of the draft, the intern
presented it to the secretary and the secretary made the final minutes by
consulting the drafts. The minute preparation helped the intern to learn to
concentrate in a meeting and to develop analytical skills.
 Logistics Arrangement: The intern was given the responsibility of arranging the
logistics required for conducting the meetings smoothly. Confirming the number
of attendees, arranging the notebooks and pens, and other essentials were done.
The intern also took the responsibility of ordering refreshments for the meetings
based on the instructions given by the supervisor.

4.1.2 Road transport & transit committee:

The road transport and Transit Committee of Federation is foremostly obligated with
compiling the rights, interest and problems of related business organization to the
government and help government on making rules, regulation and policy in favor of all
business organization, Nepalese citizen and the Nation as whole.
Under these committee an intern was stated to support an “Interaction Program on web-
based vehicle and consignment tracking system” conducted on Federation Secretariat.
The intern was liable to prepare a minute of a meeting and communicate with the
delegates of an organization.
 21

4.1.3 Tax & revenue committee:

This committee lobbies with government in policy making for formulation of various
feasible act, policies, rules and regulations related to tax and revenue. Moreover, the
committee also conducts various meetings, analysis and seminar related to tax, revenue
and custom that assist every business owner and government.
During the placement on Tax and revenue committee, intern got opportunity to:

 Make a review on the changes made on Income Tax, Value Added Tax, Excise
Duty and Custom from the budget of fiscal year 2019/20 as announced by Dr.
Yuvraj Khatiwada-Finance Minister.
 Join interaction program on the effect of budget and Economic Bill.
 Prepare analysis of Spread Rate, Cash Reserve Ratio and Statutory Liquidity
Ratio of SAARC Countries.

4.1.4 Cottage & small industry committee:

Cottage and small industry committee is involved to support private and public agency
for formulating existing or new policy, rules and regulation, law and act, government
decision related to small and medium enterprise. It encourages and empowers small and
medium enterprises for participation in national and international trade fairs and
exhibitions. It organizes cottage and small industry promotion meetings and seminar in
order to address their needs, rights, interest and grievances to national platform. It
strengthens local trading firms.
Throughout the internship in the respective committee an intern was able to conduct
following activities:

 Communication with District Chambers: The intern was given the

responsibility of communicating with the district chamber president to participate
on the program. The intern used their communication skills to interact with the
district chambers to be successful to invite all those small and cottage industry
owners to participate in the event.
 Confirmation and documentation: After the initial approach to the chambers,
the intern took confirmations from the interested chamber of commerce from
 22

neighbor district. The President of respective organizations was asked to send the
details of all the attendees. The intern kept record of all the documents sent and
send the same to the FNCCI authorities.
 Slide Preparation: The intern also prepared a power-point presentation which
represents the overall business environment of a Nation. The role of
industrialization to develop a nation was given importance to the slide which was
meant to empower the local entrepreneur.
 Attending Promotional Seminar: While being posted in the concern committee
intern was fortunate enough to attend a Promotional seminar entitled as “Laghu,
Gharelu tatha Sana Udhyami haruko Prabardanatmak Gosthi” conducted with
collaboration of Kavre Udhyog Banijya Sangha and FNCCI. The seminar was
about providing the platform to local entrepreneur and assuring them that FNCCI
is there for their convenience and aid to listen and help them and their business to
grow and expand.
 Minute Preparation: The intern was responsible for drafting a meeting minute
and then represent it to the delegate authorities of FNCCI so as it will be address
to their respective governmental and non-governmental bodies.

4.1.5 Education & skill development committee:

FNCCI is also headed by the education and skill development committee so as to
enhance, train and empower their employee, members and interested individual to be
more creative, innovative, well-update and skillful. This committee provides a platform
as American Spaces with cooperation from U.S. Embassy, where people can have asses
with American- style Library named as “ihub”. The U.S. focused library does not only
allow individual to asses with internet and different foreign books and journals it also
allows to conduct different program that aid in shaping, developing and enhancing the
knowledge and skill of an individual as well as group.
In the course of internship in this committee intern was facilitated to perform the various
activities as:
 23

 Attending Program: The intern got the opportunity to attend various following
program during the internship:

 Spelling Bee Program, a national level competition organized with the

collaboration of U.S. Embassy and ihub
 Introduction Program on Digital Library organized by The Asia
Foundation and hosted by ihub.

 Vermicomposting and Rooftop Farming Management Training jointly

organized by NCDS and ihub.

4.2 Problems Faced and Solved:

The intern actively served the organization by bringing solutions to various problems of
the enrolled committee. Most of the duration was spend in various activities. During stay
in the committee, the intern was given autonomy to operate activities as one of the
employees of the organization. In absence of section head, the intern was allowed to carry
out the pending task related with the section. The intern solved the following problems
related to the overall affix committee:

 There were huge piles of unrecorded documents and data which were recorded
and arranged in chronological order by the intern.
 The meeting attendees did not confirm their participation on time, that affected
the overall management of the meeting. Thus, intern estimated only half of the
presence from those of invited personnel and was fully prepared to cope the flow
of twice the estimation with adequate logistics arrangement.
 Sometimes multiple meetings occurred in a single day and that caused issues in
the management of logistics and minute preparation. However, intern managed to
get along multiple meetings with appropriate resources on time and need.
 Made immediate report to the intern’s supervisor about false data and suggested
for correction.
 Helped visitor to meet their desired person in the company by providing proper
direction.
 24

CHAPTER FIVE

CONCLUSION AND LESSON LEARNT

5.1 Conclusion

The experience of eight weeks was great in Federation of Nepalese Chambers of

Commerce and Industry. The internship project provided a wonderful opportunity to
learn more about the trade and commerce sector. It gave Intern the platform to judge the
skill and capability to apply the learnt knowledge into actual practice. The industrial
attachment project also gave a chance to get exposed to the organizational environment
and work culture.

Internship has broadened intern’s knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of Nepalese business and commercial sector. The practical cases are
viewed different from that lesson learnt in the classroom. Further intern has also become
versed to get socialize with the diversified people, to deal with the senior staffs, and to
deal with the intern colleague so as to make the working environment cheerful, pleasant
and friendlier. Beside this, the supervisors were extremely helpful in guiding on our
internship program. The experience of internship was incredible which boosted the
confidence level and enhanced inter-personal communication skills of the intern. It
developed interaction skills and shaped up personality too.

As we know, Federation of Nepalese Chambers of Commerce and Industry is a business

association having significant role in the development of the economy as a whole of any
country. It facilitates the growth of trade and commerce industry of the national
economy. However, in Nepal the major challenge for business association is to make
aware the people about the importance of trade and commerce industry

Intern at Federation of Nepalese Chambers of Commerce and Industry experienced a

great deal of corporate cultures in a friendly environment. Intern was involved in various
 25

departments gather practical experience about the functioning of those committee and the
Federation as a whole. This internship favored to get the practical acquaintance of the
Federation and its operation system. Learning under those experienced heads made the
intern’s work easy and intern was able to develop and represent as a member of the
Federation of Nepalese Chambers of Commerce and Industry rather than just an intern.

While concluding this report, intern has been able to understand the Federation operation
to some extent and is intensely satisfied with the internship and its outcome. This
experience will not only be beneficial today but also in the future when the intern should
work in the real life or start a career in the commercial sectors of Nation.

5.2 Lessons Learnt

The duration of internship lasted for around two months and during the course of the
internship there were various lessons that intern was able to learn. This internship was a
great opportunity for an intern to face real-life work scenarios after four years in the
classroom, and it must be said that it was a great learning experience. Some of the lessons
learnt during this time as junior assistant at FNCCI could be summarized as follows:

Knowledge Based Learning:

 Learnt the necessity of apex body to support the national goals of self-reliant and
independent national economy.
 Learnt the procedures and requirements to register and commence business
activities.
 Learnt the function of every department of FNCCI and their independent role to
protect and promote the right and interest of every level of businessman.
 Learnt in depth about the cooperation of FNCCI with related national and foreign
organizations.
 Learnt the process of providing advisory services to government, lobbying as and
when required in formulation and execution of business and industry related
policies, acts and programs friendly to the private sector.
 Learnt the protocols of mediating between and among the businessman and
Government.
 26

Skill-Based Learning:
 Learnt how to conduct National and International meeting and interaction
program.
 Learnt the overall Federation operation through various committee such as:
Export Promotion Committee, Road transport & transit committee, Tax &
revenue committee, Cottage& small industry committee, Education & skill
development committee.
 Learnt to use theoretical knowledge in practical working environment.
 Learnt to maintain and handle the files or document which might be helpful in the
near future.
 Learnt to use the mail, printer, photocopy machine etc.

Behavioral Based Learning

 Learnt to handle member visiting in the FNCCI with different temperament,
moods and queries.
 Learnt the importance of time management and developed interpersonal and
communication skills.
 Learnt the importance of correlation among the various Federation operation for
the overall benefits of the FNCCI.
 The specific abilities like interpersonal skills, computer application skills,
importance of teamwork and patience skills etc. were enhanced during the
internship periods.

Concluding with the saying “the things that had been read 1000 times can be learned by
hearing that 100 times or by writing it 50 times or watching it 10 times or by actually
doing it only once” This saying is appropriate at this stage to express the lessons learnt
during the internship period. In the internship, practically the work is either observed or
done personally, which are the best means of learning. So, the internship program is
successful in bringing the change in the student closed in the boundary of the classroom
by exposing them in the real and very difficult as well as challenging external job place.
 27

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Introduction. (2019). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Trade

Khadka, D. B. (2013). Establishment and Development of Chamber of Commerce and Industries

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