Sunsari-Morang corridor sees fresh investments pouring in
BIRATNAGAR, NOV 21 -
With relative improvement in business environment and easing labour unrest, fresh investments are being made in the Sunsari-Morang Industrial Corridor, one of country’s largest industrial belts.
The last 15 months saw investments worth Rs 2 billion being made in the corridor by Biratnagar’s leading industrial groups.
According to the Morang Merchant Association President Abinash Bohara, Biratnagar’s leading industrial groups are either setting up their new ventures or expanding their existing capacities.
The settlement of wage-deal between employers and workers and breakthrough in Maoist combatants’ integration process, has prompted industrial groups in Biratnagar, including Golchha, Bohara, Kabara, Rathi and Sarada among others, to scale up their investments.
Sectors like refined oil, mustard oil, paddy mill, plastic industry, iron rod and noodles have received much investment compared to other sectors. “For the last year, there has been slowdown in closures and strikes. With the labour problem now resolved, investors are encouraged to pour more money,” said Rajendra Rawat, vice president of the Purbanchal Chambers of Commerce and Industry.
The Bohara Group, which is involved in rice, pulses and edible oil manufacturing, is setting up a factory for the production of Soya flour and crude soybean oil—the necessary raw materials for textured soya protein (Nutrela) production. “Investment scenario is improving of late,” said Abinash Bohara, director of the group.
With an investment of Rs 400 million, Golchha Organisation’s Hulas Wire Industry Limited has started manufacturing iron rod, angle channel and angle section.
Kabara Group that manufacturers Kwality Biscuits is expanding its plant’s capacity. Nawal Kishor Kabara, director of Kabara Group, said the group is installing an ultra-modern machine at its biscuit factory in Duhabi, Sunsari. “We’re installing a new plant,” said Kabara.
Bagmati Oil Industries that produces refined oil has set up a new plant with an investment of Rs 130 million. The Rijal Group, which is involved in polytank manufacturing, has ventured into LPG production with ‘Rijalko Gas’. The group has invested Rs 150 million for this venture.
The Rathi Group is establishing a plywood factory with an investment of Rs 120 million. And, Ganesh Agrawal and Sudheer Todi invested Rs 200 million to set up a rice mill here. The mill that began production three months ago produces five variants of rice.
Despite the recent silver lining in the industrial sector, industrialists say power crisis has made them wary. Rawat says there will be even more investments, provided that the government ensures regular energy supply.
Nabin Rijal, director of Rijal Group, says the investment spree in the Sunsari-Morang Corridor will continue for some more time. “We can benefit more if we attract Indian investments in the corridor,” said Rijal.
In the last few years, the corridor that was pioneer in country’s industrialisation was in news for wrong reasons. Fluid political situation, labour unrest and frequent strikes had pushed industries here either to a closure or relocation to other industrial areas. Surya Nepal, the country’s leading joint-venture company, recently closed down its garment unit in Biratnagar due to labour unrest.
Source: Kantipur
