Govt to build industrial estates at former Maoist cantonments

KATHMANDU, AUG 17 -

The government is preparing to build industrial zones or special economic zones at four areas where once stood cantonments of former Maoist combatants.

Industry Minister Shankar Koirala said on Friday that the spaces occupied by the cantonments in Nawalparasi, Dang, Surkhet and Kailali districts would be used for industrial purposes.

There has not been expansion of industrial estates since the establishment of the Rajbiraj industrial zone in 1988.

Koirala said the plan to expand industrial estates is part of the government’s commitment to provide necessary infrastructure to industries.

“The move is likely to give a boost to the industrial sector and achieve higher economic growth,” said Koirala at an interaction organised by the Ministry of Industry and the Society of Economic Journalists Association.

Koirala also holds Finance and Commerce portfolios. The country currently has 10 industrial estates in places including Hetauda, Butwal, Bhaktapur, Pokhara, Dharan, Nepalgunj, Rajbiraj, Birendranagar, Balaju and Patan. According the ministry, the areas covered by the cantonments in Kailali and Surkhet are quite large, making them apt for industrial zones.

Meanwhile, the government has acquired 800 bighas of land in Simara, while it is in the process of acquiring 1,000 ropanies in Pachakhal and 300 bighas in Biratnagar for SEZ.

It has also been conducting a study to set up a SEZ in Rautahat. “We have allotted Rs 60 million to acquire the land in Biratnagar and Rs 200 million for Panchkhal in this year’s budget,” said Koirala.

Cabinet advised to declare four industries sick

The Ministry of Industry has recommended that the Cabinet declare four industries—Birat Leather, Birat Shoes, Shree Nepal Boards, and Basuling Sugar Mill—sick so that the committed facilities could be made available for them. “The proposal is under discussion at the Cabinet’s Finance and Infrastructure Committee,” he said. Out of 37 industries studied, these four were recommended for declaring sick. As per the existing legal provisions, industries that have incurred losses for five consecutive years and ones operating at less than 20 percent capacity are considered sick industries.

Source: The Kathmandu Post