MoI names six more enterprises to be declared sick

KATHMANDU, Feb 9 :

The Ministry of Industry (MoI) has forwarded the names of six additional industries to the cabinet to declare them sick and provide incentives to enable them to operate in full capacity.

MoI on Wednesday forwarded the names of Sumi Pharmaceuticals of Nawalparasi, Fleur Himalayan of Parsa, Gaida Wildlife Camp of Chitwan, Shree Antu Tea Estate Ilam, Fulbari Resort and Spa, Dolphin Manor Private Limited, Bardiya to the cabinet for final approval.

Yam Kumari Khatiwada, spokesperson for MoI, said that they have forwarded the names of six industries that had submitted applications willing to be declared as sick industries.
Sick industries declared by the cabinet can enjoy customs waiver on import of machineries for expansion. “However, most of the industries have placed additional demands such as interest-free loans and extension of loan maturity period,” added Khatiwada.

Nawa Durga Khadhya Udhyog of Kailali and Texyarn Industry of Bhairahawa were in the final list prepared by MoI but officials said both of the industries could not furnish satisfactory balance sheet. Likewise, MoI has sought opinion of Ministry of Finance for declaring Bhrikuti Paper and Pulp industry, which was privatized in 1992, a sick industry. A high-level taskforce on rehabilitation of sick industries led by erstwhile vice-chairman of the National Planning Commission, Dipendra Bahadur Chhetri, had suggested not providing the facilities enjoyed by sick industries to private companies.

Industrial Enterprise Act 1992 allows industries to be declared “sick” if they operate at less than 20 percent of capacity and suffer losses for five consecutive years.
Earlier, MoI had forwarded the proposal of those four industries-- Birat Leather, Makawanpur, Birat Shoes, Kathmandu, Shree Nepal Boarders, Mahottari and Basulinga Private Limited, Kailali-- to the cabinet to be declared sick in May last year. However, the cabinet is yet to take a decision.

MoI officials say they have forwarded the name-list as part of their job. Some 37 industries had applied for the status of sick industry.

Source: Republica