IPB seeks 70pc power tariff cut
KATHMANDU, JAN 20 -
The Industrial Promotion Board (ipb) has decided to recommend to the Ministry of Finance to provide a 70 percent discount on the electricity tariff for three years to industries established in the most underdeveloped and remote areas of the country.
The board’s 213th meeting chaired by Industry Minister Mahesh Basnet has also decided to urge the Finance Ministry to provide facilities to the industries set up in remote parts of the country as per provisions 15 and 16 of the Industrial Enterprises Act, 1992. The government has identified 35 districts as being the least developed.
Provision 15 (F) of the act states that any industry, established in any remote, undeveloped or underdeveloped area, shall be granted 30, 25 and 20 percent income tax exemptions respectively and 35, 25 and 15 percent excise duty exemptions respectively for a period of 10 years from the date of operation.
These incentives do not apply to industries producing cigarette, bidi, cigar, chewing tobacco or khaini and industries producing other goods of a similar nature utilizing tobacco as their basic raw material. Similarly, industries producing alcohol or beer are ineligible to get these facilities. “The amount deducted from the power bill will be provided to the Nepal Electricity Authority (NEA) by the Finance Ministry,” said Maheswar Neupane, member secretary of the board, adding that the initiative was aimed at promoting industry.
The Ministry of Industry said in a statement that it had recommended Rolpa Cement to receive a 70 percent concession on the electricity tariff for three years from the date of its operation. “Electricity has not reached the factory so far. The concession will be valid from the date it is connected to the power supply,” Neupane said.
Annex 3 of the act has categorized 22 districts as being remote areas—Darchula, Bajhang, Bajura, Humla, Jumla, Mugu, Kalikot, Dolpa, Mustang, Manang, Solukhumbu, Sankhuwasabha, Khotang, Bhojpur, Achham, Dailekh, Jajarkot, Rukum, Okhaldhunga, Myagdi, Terhathum and Ramechhap.
Similarly, 13 districts have been categorized as being undeveloped areas—Taplejung, Rolpa, Baitadi, Rasuwa, Gulmi, Parbat, Dadeldhura, Pyuthan, Doti, Salyan, Panchthar, Baglung and Sindhupalchok.
Source: The Kathmandu Post
