KATHMANDU, AUGUST 2

Confederation of Nepalese Industries (CNI) has requested the government to withdraw its decision to increase the rent in the industrial areas, stating that the decision will affect investment in the manufacturing industry and discourage the private sector.

In a meeting with the Minister of Industry, Commerce and Supply Dilendra Prasad Badu and Industry Secretary Arjan Prasad Pokharel today, a CNI delegation led by Acting President Krishna Prasad Adhikari proposed to revise the Industrial District Management Ltd (IDML)'s decision to increase the rent and find a long-term solution to the matter.

Despite disagreement among the stakeholders, the IDML has decided to increase the rent up to 687 per cent effective from July 17, 2018. Following the protest of industrialists, the then industry minister had instructed IDML not to implement the decision immediately and to conduct a detailed study.

However, IDML during a meeting held on July 6 has decided to increase the rent from July 17.

Meanwhile, the CNI has objected to IDML charging demand for electricity on the basis of equipment in the industry (including storage), and charging fees even for the water extracted by the industry itself.

Acting President Adhikari said that the unprecedented rent hike has exacerbated the woes of COVID-battered industries.

He further urged the minister to facilitate resolving the issues quickly, create an environment for industries to work smoothly, and demanded that IDML be restructured.

Minister Badu said that the ministry has given high priority to the issue of rent increase and is committed to solve it in cooperation with the private sector. Industry Secretary Pokharel said that the investors should be able to operate their industries without any hassles in the industrial estate. He assured that a long-term solution will be sought following discussions with the IDML.

A version of this article appears in the print on August 3, 2022 of The Himalayan Times.