Indian group to invest heavily in Nepal
Biratnagar, July 26:
India-based Bhushan Group plans to operate three big industries in Nepal — two in Biratnagar in the eastern region and one in Surkhet in the mid-western region as soon as the political uncertainty ends in Nepal. The group is carrying out feasibility study regarding the establishment of the industries. Bhushan Group is already operating Arati Strips — a zinc industry — with an investment of Rs 5 billion at Tankisinwari in Morang district for the past six years.
“Many Indian investors are in confusion because of the political instability in Nepal,” Roshit Unnithan, general manager of Arati Strips said. “The group has already got approval for the establishment of a cement factory in Surkhet at a cost of Rs 1600 million,” Unnithan said, adding, “Study regarding the establishment of two industries manufacturing plastic pipes and corrugated iron in Morang-Sunsari corridor is underway.”
“If the government could attract big investors, it would help in the development of the eastern region,” Mahesh Kumar Jaju, chairman of Morang Trade Association said, adding, “Though several Indian investors are interested in investing in Nepal they are awaiting political stability in Nepal.”
Meanwhile, the export of corrugated iron to India decreased by Rs 740 million in the fiscal year 2064-65 BS. Repeated bandhs and 10 per cent additional duty imposed by the Indian government are the reasons behind the decrease in the export of corrugated iron, Arati Strips said adding that the industry had exported corrugated iron worth Rs 6,540 million in the fiscal year 2063-64 BS.
Arati Strips exports 87 per cent of its manufacture to India and rest of the product is consumed in the Nepali market. Arati Strips, Hulas Steel Industries and Rajesh Metals are some of the big industries manufacturing corrugated iron in Nepal.