Industries' capacity utilisation nearly 60 per cent last fiscal
KATHMANDU:
Capacity utilisation of industries has increased by marginal 1.49 per cent to 59.32 per cent on an average in 2013-14 when compared to previous fiscal year on the back of export-oriented manufacturers like that of readymade garments, pashmina, electric wire and iron rods. However, other Nepali industries continue to run in low capacity, according to the recent report of Nepal Rastra Bank.
Capacity utilisation of industry is the difference of their annual production capacity and actual production.
The report titled ‘Study on Economic Activities’ unveiled today shows that the Pokhara region based manufacturing plants operated in high capacity at 87.13 per cent on an average during the review year, compared to 74.65 per cent in the previous fiscal. Edible oil, biscuits, noodles, bricks and cement related industries are based in this region.
Dhangadhi region based industries recorded second position in terms of capacity utilisation. There are limited industries in Dhangadhi region, namely, edible oil, flourmills, soap and detergent industries and bricks. The industries in the region recorded capacity utilisation of 71.47 per cent on average, followed by Kathmandu region based biscuits, noodles, soft drinks, pashmina, garments, bricks and cement industries at 70.89 per cent.
Similarly, Bhairahawa (Siddharthanagar) region based industries also utilised their capacity almost neck-to-neck with Kathmandu region based industries at 68.04 per cent, says the central bank’s study.
Industries based on the industrial corridor of Tarai region, that is, Birgunj, Janakpur and Nepalgunj were found to be running in low capacity. Capacity utilisation, however, has increased. Among the industries of Birgunj, liquor, tea processing industries, iron rod industries were found to be running in higher capacity.
As per the study report, Pokhara region based edible oil and biscuits industries; Kathmandu region based biscuits and noodles industries; Biratnagar and Bhairahawa based electric wire industries; Janakpur region based soft drinks industries have utilises capacity of more than 90 per cent.
Despite its annual production capacity of 24,900 tonnes, vegetable ghee industry recorded low production at 27.4 per cent or 6,824 tonnes in the review period. Electric wire industries, noodles and garment industries operated in high capacity at 88.74 per cent, 84.49 per cent and 83.73 per cent in 2013-14.
Among the export-oriented industries, garments, pashmina and iron rod industries operated in high capacity. Garment production shot up in the review period compared to the previous fiscal. Capacity utilisation of garment and pashmina industries stood at 83.73 per cent and 69.32 per cent, respectively in the review period compared to 66.69 per cent and 41.44 per cent in fiscal 2012-13.
Industrialists have said that although Nepali industries continue to be affected by crippling power shortages, improved labour relations in the recent days have improved the situation facing the industries.
“The marked improvement in the labour-employer relations is the major reason behind for this brighter situation for Nepali industries,” said Pashupati Murarka, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). According to him, production costs increase if the industries are run under capacity.
Source: THT
