Ministry plans to recommend names of more sick industries
KATHMANDU, May 24:
The Ministry of Industry is preparing to recommend the names of 10 industries as sick industries among the 37 applicants.
A team of technical experts comprising of chartered accountants have already made financial analysis and has recommended the names of the 10 industries for further observation.
Shree Distillery, Bhrikuti Pulp and Paper, Momento Apparels, Sirish Herbal, Dolphin Manner, Shree Antu Tea Industry, Kharel Wooden and Metal Furniture, Nava Durga Khadya Udhyog, Laxmi Banaspati Ghee Udhyog, and Gita Cold Store are those whose financial analysis has already been done by representatives from the Institute of Chartered Accountants of Nepal.
“The 10 industries will now be observed by the technical committee and the recommendation committee, and they will thereafter recommend the selected industries to the Cabinet for its approval,” said an official at the Industrial Promotion Division.
Till date, the team of technical experts has already recommended Birat Shoes, Birat Leather, Nepal Boards, Basulinga Sugar Mill and Everest Floriculture to the Cabinet for approval.
After completion of the report of the 10 industries by the team there will be 22 applicants remaining for the recommendation process as five industries are already awaiting Cabinet’s approval.
The Sick Industry Recommendation Committee under the Industrial Promotion Division classifies the industries based on the Terms of Reference (ToR) approved by the Cabinet. Under the ToR, the industries are classified 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 business after paying the principal amount. Possible sick industries are those, which have the possibility of revival, and for such industries, the central bank will provide a soft loan facility for three years to five years depending on the nature of the industry. Meanwhile, for vulnerable sick industries, the central bank will allow a short-term facility of one year, which is a waiver of the interest on the loan taken.
Source: THT
