Business

Bara-Parsa industrial corridor hit by strikes

Bara-Parsa industrial corridor hit by strikes

By RAM SARRAF

Birgunj, September 15 Industries and factories located in the Bara-Parsa industrial corridor have incurred losses amounting to billions of rupees due to the continued general strikes and bandhs in the Tarai. All economic activities, including industries, factories, transport, banks, financial institutions, import and export from Nepal and India, have been halted for the past one month. The industrial sector that had been devastated by the deadly earthquake of April 25 is in further distress due to the continued strikes and bandhs. Bara-Parsa industrial corridor is home to more than 1,800 small and big industries and factories, where more than 15,000 labourers are employed. United Democratic Madheshi Front (UDMF) has enforced an indefinite general strike in the plains to protest the draft statute and seven-province federal model since the last one month. Industrialist Ashok Kumar Baidhya said that Birgunj industrial corridor and the border point have been bearing a loss of Rs 500 million to Rs 600 million every day. He added that with industrialists having to pay bank interest, give salaries, and their goods decaying in stock, the size of the loss would increase. “We have to bear losses amounting to millions of rupees in late fees due to the imported goods being stuck at the border point,” Baidhya added. Earlier, fuel and other goods used to be escorted to other parts of the country, including Kathmandu, at night through customs office. After tankers drivers’ unions expressed solidarity with the general strike and agitators issued threat, escorting of commodities except fuel has been halted via Birgunj Customs Office. “Some industrialists used to send their goods through police escorting. But after the agitators issued threat for life, there is no environment to work at Birgunj Customs Office,” said Bijay Sah, chairman of Birgunj Customs Agents’ Association. Hence, Birgunj Customs Office is only importing fuel with escorting of security forces at present. The customs office had aimed to collect revenue of around Rs nine billion in the last month. Similarly, dry port had set a target of collecting around Rs 1.5 billion within the same period. The customs office, however, collected just Rs two billion and dry port collected around Rs 400 million in the past month. With this, the state coffer has lost around Rs eight billion in the past one month alone. UDMF has called the indefinite general strike since August 17. Hundreds of heavy trucks loaded with goods and commodities have been stranded at the Indian side across the border. Bijay Sarabagi, member of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), wondered why the government was not taking the issue seriously when the country was bearing a hefty loss of millions every day. “Both the government and agitating parties should demonstrate flexibility and find a way out of this situation,” Sarabagi opined. The threat to agents and employees at the customs office has brought the import of goods and commodities to a halt. Entrepreneurs complained that they were trapped between the government and agitating parties. “We are bearing a hefty loss and are wary of both government and agitators at same time,” Pradip Kediya, president of Birgunj chapter of FNCCI, said. Kediya added he could not comment further due to the sensitivity of the situation.