Rampant sub-letting robs industries of space in industrial estates

KATHMANDU, SEP 06 -

At a time when industries are struggling to get space at the existing industrial estates, there is a growing tendency of giving the space on sub-leasing for trading purposes.

Although the Industrial District Management Limited (IDML) board had decided to give the space within the industrial zone for industrial purpose two decades ago, spaces are being made available for trading purposes in many industrial zones.

While Balaju Industrial Estate has been found to have allotted space to a few automobile showrooms, a businessman has constructed a residence building inside the Patan Industrial Estate. And there is more to it:  a segment of Hetauda Industrial Estate situated next to the highway has already been handed to a petrol pump for 25 years on lease, according to officials at the IDML.

A source at the IDML said that such activities are taking place under political influence. “The government receives a minimum amount while giving the space on lease but those who sub-let the space for trading purpose charge higher,” said the source.

A trader having an automobile showroom in Balaju Industrial Estate, however, said that he took the space on lease following a negotiation with the IDML.

IDML General Manager Gautam Man Shrestha also admitted that there have been flaws in the leasing process inside the industrial zone.

“Lack of effective regulation and working guideline allowed even the trading firm to operate inside the industrial zone,” he said.

With facilities like road, electricity ensured, landing space inside the industrial zone has always remain the top priority for entrepreneurs. Currently, there are 10 such estates operating across the country. They are located in Hetauda, Butwal, Bhaktapur, Pokhara, Dharan, Nepalgunj, Rajbiraj, Birendranagar, and Balaju and Patan in the Valley.

Source: The Kathmandu Post