MoI seeks 74pc hike in budget allocation

KATHMANDU, APR 18 -

The Ministry of Industry (MoI) has asked the government to increase its budget by almost 74 percent for the next fiscal year.

The MoI has sought Rs 4 billion for 2012-13 although the Finance Ministry had asked it not to hike budget demand by over 10 percent of the existing figure of Rs 2.31 billion.

The ministry has tried to justify its demand, citing requirement of huge resources for the Nepal Investment Year (NIY) 2012-13. “The ministry needs a huge resource to execute NIY,” said Yam Kumari Khatiwada, joint secretary at MoI.

Of the sought budget, 20 percent is required for NIY, according to Khatiwada. “If the government allocates the sought budget, we will develop an investment portal and establish a well-resourced secretariat for NIY,” said Khatiwada. “Economic diplomacy and marketing of the campaign will also be costly.”

Among the programmes planned by the ministry for the next fiscal year are marketing of NIY, signing of the bilateral investment promotion and protection agreement (BIPPA) with five countries, revival of sick industries, carrying out reforms in ailing public enterprises and exploration of petroleum blocks.

The ministry’s other programmes include developing infrastructure for prioritised manufacturing industries. The MoI plans to link cement industries to limestone mines through road and also install free electricity lines for them, officials said.

“The ministry is also planning to begin feasibility studies on some new places for setting up of special economic zone (SEZ)s,” added Chabindra Parajuli, joint secretary at MoI, adding that the ministry will complete the construction work of a SEZ in Bhairawa and Simara and begin feasibility study in Janakpur, Jhapa, Rautahat, Gorkha and Dhanusha.

The ministry also requires funds to amend several industry related acts, according to Parajuli. “We need to amend Industrial Enterprises Act, Foreign Investment and Technology Transfer Act, SEZ Act and others in next fiscal year for NIY,” said Parajuli.

Source: Kantipur