Budget fails to provide relief to sick firms

KATHMANDU, JULY 16:

Budget for fiscal year 2013–14 has not mentioned any immediate relief programme to help sick industries, although they were quite hopeful of receiving some government support.

“We are quite surprised that the budget didn’t address any issue regarding the sick industries rehabilitation,” said president of Garment Association – Nepal (GAN) Uday Raj Pandey. According to representatives at the Sick Industries Rehabilitation Committee, it is running out of budget, which has hit the observation and recommendation process for sick industries.

Earlier, the committee had received an additional budget of Rs 1.27 million for the observation and recommendation procedure of those that had applied for sick industry facility.

“The budget should have mentioned the facilities to facilitate implementation of the sick firms recommendation process and make it result oriented,” Pandey said. There are already five industries that are waiting for the committee’s approval to be declared as sick and get the facility, according to the recommendation made by the committee.

The Ministry of Industry has already recommended to the Cabinet to declare Birat Shoes, Birat Leather, Nepal Boards, Basulinga Sugar Mill and Everest Floriculture as sick industries . A team of representatives from Industrial Promotion Division has also made an observation tour to Jomsom Mountain Resort - Jomsom, Geeta Storage -Janakpur, Alina Garment - Sunsari, Baramche Hydropower – Sindhupalchowk, and Bidhya Apparels – Kathmandu.

However, the Industrial Promotion Division officials said that though the team of experts carried out its observation properly, the committee does not have sufficient budget to carry further studies. According to the Industrial Promotion Division, the Ministry of Industry has already applied for an additional budget of Rs 1.2 million for the completion of the remaining task. Shree Distillery, Bhrikuti Pulp and Paper, Momento Apparels, Sirish Herbal, Dolphin Manner, Shree Antu Tea Industry, Kharel Wooden and Metal Furniture, Nava Durga Khadya Udhyog, Laxmi Banaspati Ghee Udhyog and Geeta Cold Store are some of the industries whose financial analysis have already been completed by the team of technical experts.

The industries will be further observed and selected by technical and recommendation committees before being forwarded to the Cabinet for final approval.

Source: THT