Budget for mega industries transferred to SEZ projects
KATHMANDU, JUN 11 -
Backing off from its commitment to providing electricity and black-topped access road facilities to manufacturing companies employing over 500 individuals, the government is transferring the budget allocated for the purpose to other projects.
The budget for the current fiscal year has allocated Rs 12 million for developing infrastructure and arranging security for mega industries. However, the Ministry of Industry is using the funds to conduct feasibility study of Special Economic Zones (SEZs) in new places, including Gorkha, Rautahat, Dhanusa and Siraha.
Over four dozen industries have applied for link roads, electricity and security facilities and their applications are pending at the ministry. However, MOI Secretary Umakant Jha said as the funds meant for the said projects remained unspent for a long time, they were transferred to new projects. “It is better to spend the budget than to freeze,” he said.
The private sector has criticised the government’s move. “It is unfortunate that the government is transferring the budget meant for us to other headings,” said Manish Agrawal, director of Lumbini Sugar Mill.
Lumbini Sugar Mill is among the 16 enterprises that have demanded security from the government. Other industries are Kiran Shoe Manufacturers, Triveni Spinning Mills, Reliance Spinning Mills and the Patan, Balaju and Bhaktapur industrial estates, among others.
The proposed SEZs, however, are not mentioned in the budget. Jha said the SEZ feasibility studies were initiated as per the ministry’s annual programme and are expected to complete within this fiscal year. However, the ministry’s annual programme does not mention about any of the SEZ projects. Also, the budget has said that preliminary work on establishing SEZs in Biratnagar, Jumla and Panchkhal will be accelerated, apart from completing Bhairahawa’s SEZ.
The SEZs in Gorkha, Rautahat, Dhanusa and Siraha were planned by the present government that formed after the budget presentation. Ministry sources said the new SEZs were announced haphazardly without any concrete plans and initiation of feasibility studies for SEZs in Gorkha and Rautahat is ‘politically motivated’ move. “The Prime Minister and the Industry Minister are from Gorkha and Rautahat districts, respectively,” a source said.
Although the government is holding studies for the new SEZs, a legal framework for their operation is still incomplete. The proposed SEZ bill is stuck at the parliament. The bill proposes that the government develop infrastructure and provide tax incentives and other facilities to industries to be opened inside SEZs.
Moreover, the ministry is struggling to complete feasibility studies on SEZs in Biratnagar, Jumla and Kapilvastu within this year due consultants’ delay.
Source: The Kathmandu Post
