Bhairahawa SEZ to be completed within this fiscal

KATHMANDU, MAY 13:

The Ministry of Industry is all set to complete the Special Economic Zone (SEZ) Bhairahawa Project within this fiscal year. “We expect the SEZ project in Bhairahawa to be completed by this fiscal year,” said spokesperson at the ministry Yam Kumari Khatiwada.

According to Khatiwada, the SEZ project in Bhairahawa is in the final stages and very soon the government will start building necessary infrastructure required for the Simara SEZ also. According to the government’s plan, it will look after the overall management of the SEZ while it will allow the private sector to establish export-based industries within the SEZ.

The ministry has also called for expression of interest of foreign and national investors who are interested in establishing export-based industries within the SEZ. Industries that are established in the Special Economic Zone will be granted fiscal and non-fiscal incentives and facilities under the new law, states the ministry.

Meanwhile, exporters claimed that until the Cabinet gives an appropriate decision about the Special Economic Zone it is quite an uncertain process. Early reports about the SEZ in Bhairahawa had estimated to generate employment for 9100 people within 10 years.

The report also stated that the Bhairahawa SEZ, being the first of its kind in the country, is expected to attract Rs 427.86 million investment in a decade in a conservative scenario. The SEZ will not only create employment and attract investment it will also earn revenue for the government. “In a decade, it could earn revenue worth Rs 4.5 million for the operator in the worst case scenario,” the report said, adding that in the middle case scenario, it could generate Rs 6.65 million and in the best case scenario, it could earn Rs 10.25 million for the operator.

A number of industries involved in motorbikes, toys, textiles, silk, knitted fabric, carpets, craft, tea, plastics, plastic packaging material, polyester thread, polyester bags and materials, ghee, plastics, and floriculture firms have expressed interest to locate to the Bhairahawa SEZ.

Construction of Bhairahawa SEZ started in 2008. According to exporters, Bhairahawa SEZ could be costlier than Birgunj SEZ which is in planning phase.

Source: THT