Corporations on the verge of closure
KATHMANDU:
The state-owned corporations that were established with the support and desire of donor agencies rather than the need of the country are facing crisis for survival.
Participants of a programme organised in the capital, on Tuesday, said this. They said some of the corporations had been closed and fewer of them are on the verge of closure as they were established without evaluating the financial and technological condition of the country.
At the function it was informed that among the 36 corporations, 14 of them are running in loss. Even those agencies that are in profit do not have satisfactory financial status and if the political interference continues they will be closed soon, experts said.
Dr. Bhola Nath Chalise, who has been making close observation to the public corporations, said the corporations that were established just only on the support of donor agencies were closed and some others are running in very poor condition.
Giving the example of Bhaktapur Brick Kiln, he said, it was out of authorised capital at the day when it was inaugurated that it started taking loan since its establishment. He interrogated how could it survive for long-term? He said Bhrikuti Paper Industry used to produce only 10 tons where such industries need to produce 100 tons to run smoothly that's why it went on loss. He claimed that Ratna Recording Corporation was only such organization that was established doing detail financial and technical survey.
Similarly, Prof. Dr Govinda Nepal said it is necessary to study about public corporation before the nation go for federal system. When the nation follows the federal system, there is the possibility of privatisation of the organisations, the state government may think for the alternative of such organisations and dispute regarding the rights and value that some of the local resources that the corporation in existence now could have been closed, he added.
Source: THT
The state-owned corporations that were established with the support and desire of donor agencies rather than the need of the country are facing crisis for survival.
Participants of a programme organised in the capital, on Tuesday, said this. They said some of the corporations had been closed and fewer of them are on the verge of closure as they were established without evaluating the financial and technological condition of the country.
At the function it was informed that among the 36 corporations, 14 of them are running in loss. Even those agencies that are in profit do not have satisfactory financial status and if the political interference continues they will be closed soon, experts said.
Dr. Bhola Nath Chalise, who has been making close observation to the public corporations, said the corporations that were established just only on the support of donor agencies were closed and some others are running in very poor condition.
Giving the example of Bhaktapur Brick Kiln, he said, it was out of authorised capital at the day when it was inaugurated that it started taking loan since its establishment. He interrogated how could it survive for long-term? He said Bhrikuti Paper Industry used to produce only 10 tons where such industries need to produce 100 tons to run smoothly that's why it went on loss. He claimed that Ratna Recording Corporation was only such organization that was established doing detail financial and technical survey.
Similarly, Prof. Dr Govinda Nepal said it is necessary to study about public corporation before the nation go for federal system. When the nation follows the federal system, there is the possibility of privatisation of the organisations, the state government may think for the alternative of such organisations and dispute regarding the rights and value that some of the local resources that the corporation in existence now could have been closed, he added.
Source: THT
