Nepal | November 27, 2020

Government to review rent in Bhairahawa SEZ again

Himalayan News Service
Share Now:

Kathmandu, January 16

The government is preparing to review the rental fee for factories operating from the Bhairahawa Special Economic Zone (SEZ) to lure industries inside the government protected area.

The Ministry of Industry, Commerce and Supplies (MoICS) has formed a committee under the coordination of its Joint Secretary Sovakanta Poudyal, to study and review rental fee in Bhairahawa SEZ after the zone witnessed lukewarm response from the private sector despite numerous facilities being offered by the government to industries within the protected area.

The issue of high rental fee tops some of the issues raised by the private sector that they say is discouraging industrialists from setting up factories inside the Bhairahawa SEZ.

Initially, the government had set Rs 150 per square metre as the monthly rental charge for industries inside the Bhairahawa SEZ. However, the government had reduced the fee to Rs 20 per square metre in April 2016 following criticism from the private sector that the earlier rental charge was uncompetitive. Meanwhile, the government is preparing to reduce the rental charge further after the private sector continues to be reluctant to set up industries inside the Bhairahawa SEZ and have been saying the fee is still high compared to different countries.

“We have already started the scientific study regarding the rental fee inside Bhairahawa SEZ. The fee will be reviewed if it is uncompetitive compared to what is practised by other countries,” said Poudyal.

Though established with the prime objective to promote export-oriented industries and boost the country’s exports, the Bhairahawa SEZ has not been able to attract investors significantly.

Initially, industries inside SEZs were required to export 75 per cent of their production. However, the government later relaxed this provision for industries to 60 per cent after industries inside the SEZ expressed their inability to comply with the export provision. Meanwhile, the government is also likely to further slash the mandatory export provision in the near future as a few MoICS officials have said it is quite high.

A version of this article appears in print on January 17, 2020 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

KP Sharma Oli, Harsh Vardhan Shringla

Indian foreign secy stresses on close ties between India, Nepal

KATHMANDU, NOVEMBER 26 India’s Foreign Secretary Harsh Vardhan Shringla, who arrived here today on a two-day visit, held a bilateral meeting with his Nepali counterpart Bharat Raj Paudyal. They reviewed several aspects of Nepal-India relations covering trade, transit, connectivity, infrastru Read More...

Ministry of Home Affairs

Banking channel mandatory for distribution of social security allowance

KATHMANDU, NOVEMBER 26 The Government of Nepal has made it mandatory for all 753 local levels to distribute social security allowance to beneficiaries through banking channel. A notice recently published by the Ministry of Home Affairs in the Nepal Gazette said the provision was stipulated in Read More...

UN condemns girl’s rape, murder

KATHMANDU, NOVEMBER 26 The UN in Nepal has strongly condemned the rape and killing of a six-year-old girl in Bardibas which was reported in the media. “We urge the relevant authorities to urgently follow due process and ensure that the perpetrator is held accountable,” read a press stateme Read More...

Subway construction in Kalanki

Council of trade unions slams employers

KATHMANDU, NOVEMBER 26 The Council affiliated to the International Trade Union Federation has called for including workers of the informal and self-employed sectors in the social security scheme. In a joint statement, the three large trade unions of the country – General Federation of Trade Read More...

‘Nepal will graduate to developing country soon

KATHMANDU, NOVEMBER 26 Prime Minister KP Sharma Oli stressed the need to advance the social security scheme with coordination, collaboration and cooperation among the three tiers of government. Addressing a programme organised by the Social Security Fund on the occasion of the Third Social Sec Read More...

Private sector’s role in reviving tourism stressed

KATHMANDU, NOVEMBER 26 The private sector needs to unite and work together for rehabilitation and revival of the tourism sector that has been hard-hit by COVID-19 pandemic. Speakers at an interaction organised by Nepal Tourism Board to promote tourism highlighted this. They further stressed th Read More...

Cultural sites to be rebuilt in two years

KATHMANDU, NOVEMBER 26 Minister of Culture, Tourism and Civil Aviation Yogesh Kumar Bhattarai claimed all the earthquake-damaged cultural and religious heritages would be reconstructed within two years. Inaugurating the construction of Narayan Chatubyuha temple’s entrance gate on the premise Read More...

Nepse at new high, but analysts advise caution

KATHMANDU, NOVEMBER 26 The Nepal Stock Exchange created a fresh record today, as the benchmark index advanced by 18.43 points to rest at an all-time high of 1,893.24 points. Prior to this, the all-time record of Nepse was 1,881.45 in 2018. While the Nepse index had surged as high as 1,926.92 poin Read More...