Incentives on cards for factories importing energy efficeint machineries
KATHMANDU, March 6:
The Ministry of Industry (MoI) is preparing to include a new provision in the Industrial Enterprise Bill for encouraging factories to use energy efficient machineries.
Newly appointed Minister for Industry Karna Bahadur Thapa has directed officials to include provision for incentives for factories that import energy efficient technology that not only reduces energy consumption but also minimizes pollution level.
Bishnu Prasad Dhakal, under secretary at MoI, said Minister Thapa has taken the initiative to forward the pill to the parliament after including some new provisions that also include incentive package for industries importing energy efficient machineries. MoI officials, however, are yet to finalize details of the incentive package.
“We are also mulling over including a ´promotional package´ to encourage factories to adopt alternative energy,” added Dhakal.
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the idea. Hemanda Dawadi, director general of FNCCI, said incentives would encourage factories to install new technology reduce their energy bills. Dawadi, however, stressed the need to implement the program and reminded that similar provision of arranging cheaper bank loans for factories to invest on energy-efficient technology has ye to be implemented.
FNCCI established Energy Efficiency Center in 1009 to carry out energy audit of factories and encourage them to adopt newer and efficient technology.
“We have found that the use of latest technology and minor improvement in energy supply has saved up to 30 percent energy in factories,” Duwadi said, adding, “Earlier factories were reluctant to cooperate with our energy audit program, now they have started to show interest on it.”
The bill was tabled in the cabinet in November last year for endorsement as ordinance. But the government led by Khila Raj Regmi didn´t endorse it. The bill, which replaces Industrial Enterprise Act of 1992, is eagerly awaited by the private sector and industrialists as it will implement Industrial Policy 2010.
The bill was prepared after holding rigorous public private dialogues from regional to central level.
At a time the country has witnessed decline in manufacturing activities, the new law is expected to encourage industrialists by offering them various incentives and putting in place investment friendly legal framework in line with the Industrial Policy.
The focus of the policy is on development of micro, small and cottage industry by guaranteeing exemption of VAT and other taxes for the initial years.
Source: Republica
