Kathmandu, July 27
Various domestic firms that have acquired permission to set up industries in the country’s maiden Special Economic Zone (SEZ) in Bhairahawa are set to start construction work of their factories from mid-August.
As per SEZ Authority, 10 out of 22 domestic firms that have obtained government’s permission to set up industries in Bhairahawa SEZ have recently completed the industry registration process and are mulling to start construction work within a week or two.
“We have given a verbal direction to the firms that have completed the registration process to start construction process of their industries immediately. The said companies are obliged to start the construction work without delay as the SEZ Authority can scrap their industry licence if they fail to heed to the given instruction,” said Chandika Bhatta, executive director of SEZ Authority, Nepal.
According to him, domestic firms like Inter-Tech Pipe and Fitting Company, Kiran Shoes Manufacturer and IDS Electric Pvt Ltd, among others, have already completed the registration process to set up industries in Bhairahawa SEZ while 12 other firms have been directed to complete the registration process at the earliest.
Rajendra Besar, operation manager of IDS Electric Pvt Ltd, said that the company will start to set up its factories in Bhairahawa SEZ in a couple of weeks.
The company is setting up an electric vehicle assembling plant inside Bhairahawa SEZ.
“We have almost completed the necessary paper works. If everything goes as planned, we will start the construction from mid-August,” Besar said.
Similarly, Kiran Shoes Manufacturers, which has taken the government’s approval to set up footwear industry in Bhairahawa SEZ, is also gearing up to start building its factory soon.
“As we are in the last stage of registering our industry, we will soon send our team to Bhairahawa SEZ to take the final note on readiness of our blocks before beginning the construction process,” said Ganesh Gautam, assistant manager of Kiran Shoes Manufacturers.
Bhattarai of SEZ informed that other domestic companies like Hulas Steels and Asian Thai Foods are also preparing to start the construction of steel products and noodle factories. “Construction work of industries can be completed within one year in Bhairahawa SEZ if domestic firms speed up the construction process. This will ensure that the maiden SEZ of the country will operate in a full-fledged manner from the next fiscal year,” added Bhatta.
The government is developing SEZs to promote export-oriented industries in a bid to attain higher and sustainable growth by boosting exports.
A version of this article appears in print on July 28, 2017 of The Himalayan Times.