PM bid to promote domestic products

KATHMANDU, SEP 12 -

The government is planning to introduce a provision that makes it mandatory for government entities to purchase domestically-made products even if they are costlier. The government also plans to amend the Public Procurement Act to promote domestic products.

“A provision will be put in place, under which government entities have to mandatorily purchase domestic products if even if they are up to 15 percent costlier than similar imported products,” said Prime Minister Baburam Bhattarai, inaugurating the 20th National Convention of the Federation of Nepal Cottage and Small Industries (FNCSI) and the 18th National Women Entrepreneurs Conference here on Tuesday. “The government will do its bit to promote domestic products.”

The government follows the Public Procurement Act while purchasing goods for government offices. However, the existing act does not speak anything on using domestic products. “Besides amending the act, the government has also planned to introduce other necessary legal provisions that support consumption of domestically-produced goods,” said Bhattarai.

This is not the first time that Bhattarai has lobbied for the promotion of domestic products. During his tenure as finance minister in 2008, Bhattarai had planned to develop the Hetauda textile mills as a factory producing textiles to be used by the Nepal Police, Armed Police and Nepali Army.

Bhattarai, in the budget of 2008-09, had also planned to make it mandatory for government agencies to purchase tires manufactured by Gorakhkali Rubber Industries.

Bhattarai said the government was also introducing a new industrial policy that complies with the industrial act in order to boost industrialisation.

Cottage and small industries (CSIs) are considered the foundation for employment and income generation, mainly in the rural areas.

Bhattrai stressed on the need for enhancing programmes of Youth Self-Employment Fund to promote these industries along with agriculture development.

“Small enterprises are the foundation of an underdeveloped economy like Nepal,” said Bhattarai.

FNCSI President Lata Pyakurel urged the government to grant 100 percent subsidy on CSI promotion. “The government has to focus on bringing proper policies and regulations to promote domestic products,” said Pyakurel, adding the industries were suffering from high bank rates.

Currently, around 110,000 CSIs are operating in the country. These industries have been creating about 80 percent of the employment opportunities and contributing 89 percent to the total industrial production.

Source: The Kathmandu Post