Government incentives to 18 export companies
KATHMANDU, APR 26 -
A growing number of export industries are receiving export cash incentives from the government, with as many as 18 out of 65 applicants availing the amount until the past weekend.
Industries related to coffee, tea, pulse, carpet, textile and leather received cash from the government upon fulfilling the required eligibility criteria, according to officials at the Department of Industries (DoI) that distributes incentive amount.
The companies to benefit from the scheme include Rolpa Carpet, Triveni Spinning Mills, Triveni Synthetic Yarn, Narayani Modern Pulse, Narayani Leather Manufacturing, Modern Pulse Industry, District Cooperatives Association- Gulmi (coffee), Annapurna Organic Coffee.
The department also provided the incentive amount to Shree Agro Processing, Krishna Modern Pulse, Triveni Pulse and Oil Company, Asian Leather Industry, Fishtail Rugs, Dhana Laxmi Synthetics, CG Foods, Continental Tea and Export, Shyam Modern Pulse and NT Foods.
Of the total companies, nine received 2 percent and five got 3 percent on the basis of their exports with different amount of value addition.
The government had announced the export cash incentives to exporters one-and-a-half years ago, alongwith conditions under which they could receive those incentives. The working procedure developed by the Department of Commerce has made value addition as the main basis for providing cash incentives.
As per the procedure, the government had promised 2 percent cash incentive on the export of goods having a 30-50 percent value addition.
It is three percent on the exports of goods that generated 50-80 percent value addition and 4 percent on those having more than 80 percent value addition. The government has also set up a fund of Rs 650 million now for the timely delivery of the incentive amount. “As per the government’s plan to promote exports, we recommended the names of these industries for the grant,” said Ram Saran Chimoriya, the spokesperson at DoI. The DoI is also preparing to provide incentives to 15 other exporters soon.
The exporters in the incentives list include Narayani Modern Manufacturing based in Chainpur, Bara, Everest Art Paper based in Kathmandu, Popular Pashmina Fashion, Kathmandu, Bikash Flour Mills in Shumshergunj, Banke.
Earlier, two exporters—Annapurna Organic Krishi Udhyog, Arghakhachi and the District Cooperatives Association, Gulmi—had received the incentives in 2011. Annapurna and the Gulmi-based association, both of whom had maintained value addition above 80 percent, had respectively received Rs 246,928 and Rs 301,694.
Source: Kantipur
