Ministry confused about new terms of reference

KATHMANDU, FEB 08:

Though the cabinet approved the new Terms of Reference (ToR) to ease the recommendation process for sick industries, the Ministry of Industry (MoI) is still confused regarding the recommendation process.

The technical committee had recommended names of three different industries a month ago, but the industries are still awaiting a final recommendation from MoI. “We are confused on whether to classify and recommend industries according to the old ToR or whether to follow the new one,” said joint secretary at MoI Yam Kumari Khatiwada.

However, earlier, Industrial Promotion Division (IPD) had mentioned that Industrial Act does not mention the category under which the sick industries could be classified and introduction of new ToR will help ease the classification and recommendation process of sick industries.

The technical committee, under IPD, had recommended the names of Nepal Boards, Birat Leather and Birat Shoes much before the cabinet approved the new ToR. According to MoI, the new ToR has classified the industries as complete sick industries, possible sick industries, and vulnerable sick industries.

Complete sick industries are those that cannot be revived and they can completely shut down their businesses after paying the principal amount.

Similarly, possible sick industries are those which have the possibility of being revived, and for these industries, the central bank will provide a facility of a soft loan for three to five years depending on the nature of the industry. Meanwhile, for vulnerable sick industries, Nepal Rastra Bank will allow a short-term facility of one year, which is a waiver of the interest on loans taken.

“Besides those three industries, we are working according to the new ToR for the remaining industries,” said Khatiwada. For the financial analysis of the industries, the Ministry of Industry has also made an organisational agreement with the Institute of Chartered Accountants of Nepal.

 

Source:THT