Classify sick industries as per the degree of their problems

KATHMANDU, DEC 25 -

In an attempt to find out a permanent solution for sick industries, the Sick Industry Rehabilitation High-Level Task Force is planning to ask the government to classify such industries as per the severity of their problems and introduce incentive packages accordingly.

The taskforce is submitting its report to the prime minister soon. Members of the taskforce said they would recommend the government to establish a separate body having representation from the private sector and experts to take care of the manufacturing sector permanently. “We are planning to submit the final report to the prime minister within a few days,” said a member of the high level task force.

“The government formed hundreds of committees and sub-committees to study the status of sick industries. They also made certain recommendations. But the suggestions could not be implemented due to frequent change in government,” said Byagendra Raj Sharma Poudel, coordinator of the Sick Industry Rehabilitation Sub Committee. “There is a need for a permanent body to take care of sick industries permanently.”

Poudel added that the committee will recommend the government to classify sick industries into three categories—fully sick, sick and those on the verge of sickness.

The report, which the taskforce has prepared after holding necessary consultations with stakeholders, including the private sector, has defined a fully sick industry as such business enterprises which has no hope of revival. “Such industry should be provided easy exit giving a two-year time,” the report said.

It says sick industries of the second category can be revived, provided the government take special care of them. “We will ask the government to offer such industries three- to five-year package for rehabilitation,” said a member of the taskforce, adding they will also demand that the government provide sick industries with loans at low interest rate and tax exemption, among others.

The report has categorised industries suffering from high bank rates, power cuts and unfavourable industrial environment under the category of industries on the verge of sickness. According to the members of the taskforce, soft loans from the government could boost such industries’ confidence.

“Once sick industries are classified, the government can more effectively design facilities for them,” said Yam Kumari Khatiwada, spokesperson for the Ministry of Industry (MoI).

Since the government announced to help sick industries, some 25 industries have so far approached the Ministry of Industry and other 13 industries have asked the National Planning Commission (NPC) for incentives.

Source: Kantipur