MoI to table SEZ Bill for approval in next House session

KATHMANDU:

The Ministry of Industry (MoI) is planning to table the Special Economic Zone (SEZ) Bill in the upcoming session of the Legislature-Parliament for its endorsement. The Bills Committee of the Cabinet has already given its go-ahead to the Bill.Minister for Industry Mahesh Basnet, today, informed that legislation of the Bill is a must for establishment, operation and management of SEZ.

However, the government has already brought the Bhairahawa SEZ — country’s first Special Economic Zone — into operation since November this year. This has been possible as Bhairahawa SEZ is being run based on the Operating Guidelines of SEZ that was green-lighted by the Cabinet in May last year.

“SEZ Act is a must to boost the confidence of investors,” said Basnet.MoI may have been pushing for expediting the process of getting the SEZ Bill approved by the Parliament after it witnessed lukewarm response from investors in Bhairahawa Special Economic Zone due to lack of legislation.

A glaring example of this is that the SEZ Development Committee received expression of interest to set up industries in Bhairahawa Special Economic Zone from only a dozen investors though it has a total of 68 plots.

The draft of the SEZ Bill has envisioned that industries established in the SEZ should export 75 per cent of their products.The draft Bill has also proposed rebating rental charge of land at the rate of 50 per cent, 40 per cent and 25 per cent in the first year, second year and third year, respectively on the recommendation of SEZ Development Committee.

The 11-member committee led by the industry secretary will be authorised to recommend the rental charge rebate for the industries established in the SEZ based on the performance of the respective industry.

Apart from Bhairahawa SEZ, the government is preparing to develop SEZs in 14 other locations across the country and has started acquiring land for the purpose. The proposed locations are Simara of Bara district, Panchkhal (Kavre), Biratnagar (Morang), Jumla, Nuwakot, Kailali, Siraha, Gorkha, Dhanusa and Rautahat, among others.The SEZ Bill was first drafted in 2006 and sent to the Parliament for approval but it was not endorsed back then as it required a few amendments. It had been, thus, sent back to Mo

Source: THT