Wednesday, April 14, 2021

Nepal to revive closed private sector industries

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Kathmandu, Dec 13 (IANS) The Nepalese government is to revive the private sector industries which were closed over the last several years by offering policy and infrastructure related support.

The Industry Ministry said on Monday it was going to issue a 21-day notice requesting the owners of closed factories to provide details about their factories, including the reason for the closure, Xinhua news agency reported.

Neither the Nepali government nor the private sector bodies have exact information about the number of industries closed in the recent years.

But, a large number of industries, particularly the manufacturing ones, were closed due to unfavourable business environment created by decade long civil war, prolonged political instability, labour unrest and most recently, the last year’s deadly earthquake and border blockade in the southern border points.

Nepali Industry Minister Nabindra Raj Joshi said the government would form a panel to study on the closed industries if the government could provide certain support for their revival after their details are received.

“The government will provide physical, infrastructure and policy related support for the industries which could be revived,” he said.

The Nepali government has planned to collect details about such industries from both local and central levels.

The Industry Minister who has also already taken move to revive state-run industries such as Nepal Drugs Limited, a pharmaceutical company and Hetauda Textile Factory, established with Chinese support in 1976, took another step to revive the closed private sector industries too.

The government’s move has delighted the Nepali private sector.

Pashupati Murarka, President of Federation of Nepali Chambers of Commerce and Industry (FNCCI), the apex private sector body, said the government’s move was positive but the question is whether it would be serious to implement its plan.

“Hundreds of the industries, particularly small and medium scale ones, perished due to earthquake in the worst hit 14 districts of the country, but they have been hardly getting any support for revival from the state so far,” said Murarka.

Although the government formed Rehabilitation Fund worth $1 billion to revive quake-hit industries, hardly any amount has been spent from the fund, according to Nepal Rastra Bank, central bank of Nepal, under which the fund has been established.

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