Ministry to propose Cabinet to declare half dozen industries sick

KATHMANDU, FEB 02 -

The Ministry of Industry (MoI) is preparing to recommend the Cabinet to declare Pokhara-based Fulbari Resort and Chitwan-based Chitwan Wildlife Lodge as sick industries and provide necessary facilities to revive them.

Ministry officials said discussions are underway on recommending the Cabinet to declare half a dozen industries as sick industries, including above two. Based on the recommendation of a technical committee, the ministry is planning to make such a recommendation.

“The names of the potential beneficiary industries have reached the ministry ’s implementation committee headed by the secretary,” MoI Secretary Krishna Gyawali said. “We will first seek opinion from ministries concerned about whether certain industries should be recommended for sick industry and then send them to the Cabinet.”

MoI Spokesperson Yam Kumari Khatiwada said the ministry has sought inputs from the Ministry of Tourism and Forest and Soil Conservation Ministry in the case of Fulbari and Chitwan Wildlife Lodge.

The government has not decided on the facilities to be provided to sick industries. A high-level committee headed by former National Planning Commission Vice Chairman Deependra Bahadur Kshetry had earlier suggested different types of facilities based on the degree of the sickness.

The committee had suggested allowing fully sick industries to exit from the business, providing loans at low interest rates, tax exemption and relaxation in loans provided earlier for industries that can be operated again. For the industries that are prone to turn sick, the committee had suggested providing soft loans for at least a year to revive their confidence.

Gyawali said the Cabinet should take policy decision on the matter as the current provision in the existing Industrial Enterprise Act is not sufficient to revive sick industries as it just talks about customs duty facility on machineries import.

Ministry officials said Fulbari Resort has sought that it be allowed to pay its liabilities to the government on an installment basis. The resort has also asked the government to wave off the interests.

Gyawali said the majority of sick industries have sought concessions on loan repayment and revenue facilities. Earlier, the MoI had proposed the Cabinet to endorse Nepal Boards Limited, Bara; Basuling Sugar Mill, Kailali; Birat Leather Industries and Birat Shoes Company, Hetauda as sick industries. However, all these companies are yet to be declared sick. “We are not sure why the Cab-inet hasn’t taken a decision.”

Source: The Kathmandu Post