Sick industries observation tour to start next week

KATHMANDU, SEP 18: 

A team of representatives from Industrial Promotion Division this week is going for the observation tour of sick industries in Birgunj, Hetauda and Nawalparasi.

“Within a week, we will start the observation tour of industries that has applied to get relief package under the ‘Sick Industry Category,” said an official at the Industrial Promotion Division Eknarayan Bhandari.

“The team will study around 10 industries that have applied to get facility under sick industries,” he said, adding they are planning to conclude the study in Birgunj, Hetauda and Nawalparasi within a week and start prepare report after further verification. After they get verified, they will be recommended for sick industries facility.” 

The team consists of representatives from Nepal Rastra Bank, Chartered Accountant Association, Mechanical Engineer, and under secretary of the Ministry of Industry Surya Kant Jha, apart from Bhandari. 

The report prepared by observation team will be submitted to the technical team, which will further re-verify and classify the industries for final recommendation. A total of 29 firms have applied for the facility.

However, the division stated that it will not consider the ‘fraud industries’ under sick industries category. The high-level committee formed to identify sick industries can also facilitate industries that want to exit.

Similarly, they consider those industries that went bankrupt due to natural calamities but those which went bankrupt due to their own weaknesses and fraud cases will not be considered as sick industries.

For the sick industries classification and recommendation process the division had claimed for a budget of Rs 2.7 million however after frequent lobbying, it has received one-third budget to start its tour and prepare the report. “We have received Rs 0.85 million budget which will be of a great support to start the process,” said under secretary at the MoI Surya Kant Jha. There are around two to three committees for technical observation and evaluation of industries that have applied for it, but the committees lack appropriate infrastructure to organise their meetings and day-to-day tasks.

Source: THT