Nepal | July 11, 2020

Industries yet to be set up at Bhairahawa SEZ

Himalayan News Service
Share Now:

Kathmandu, March 21

Though all the 69 plots in Bhairahawa Special Economic Zone (SEZ) were booked in October last year, none of the companies that have been authorised to set up industries within this special zone have started construction work.

Due to the delay by the government in creating a favourable environment as pledged, 22 companies that have acquired permission from the government have not even completed their registration process so far.

The SEZ Development Committee in October had approved the request for proposal (RfP) of 22 domestic companies to set up industries within the Bhairahawa SEZ, allowing these companies to begin construction work after fulfilling industry registration requirements of the government. But the Bhairahawa SEZ Office is yet to begin the registration process of industries. This has delayed the timely operation of the only SEZ that has been inaugurated in the country so far.

“Industries had already begun the registration process at different government agencies. However, the meeting of Industrial Promotion Board (IPB) in the first week of March recommended the government to introduce a provision whereby industries can complete entire registration process from the respective SEZ offices itself,” Chandika Bhatta, executive director of SEZ Development Committee said, adding that the registration process currently has been delayed as this recommendation of the government is yet to be endorsed from the Cabinet.

In a bid to promote export-oriented industries in the country to narrow down Nepal’s trade deficit, the government had accelerated its efforts to establish SEZs in the country and Bhairahawa SEZ, the first in the country, was inaugurated in November 2014. Though domestic companies were reluctant to set up industries within Bhairahawa SEZ, it received overwhelming response from domestic investors after the endorsement of SEZ Act in August last year. Nevertheless, the procedural delay from the government has been interrupting the full-fledged operation of Bhairahawa SEZ.

Moreover, the government also has not been able to ensure dedicated supply of power in Bhairahawa SEZ. Though the SEZ Development Committee has asked Ministry of Energy (MoE) for 15 to 20 megawatts of dedicated electricity supply in Bhairahawa SEZ, MoE has not yet taken a decision on the proposal. “The government should ensure energy supply that is required for industries to run inside Bhairahawa SEZ as soon as possible,” Bhatta said.

As the SEZ Act ensures different taxation waiver facilities for industries within SEZ, domestic companies have shown interest to set up different industries inside Bhairahawa SEZ related to water bottling plants, polymer, beverage, metal processing, electric products and noodles, among others.

Shankar Koirala, secretary of Ministry of Industry (MoI), informed that the Cabinet has recently given a nod to the recommendation of IPB to complete all registration process of industries in their respected SEZ Offices. “We will soon publish a notice to this effect in the gazette enforcing the recommendation of IPB,” said Koirala.


A version of this article appears in print on March 22, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Electric vehicle charging station comes into operation in Tanahun

DAMAULI: An electric vehicle charging station has come into operation at Dumre in Bandipur Rural Municipality-1 of Tanahun district, on Friday. Tanahun Division Forest Office provided Rs 500,000 for setting up the station, first of its kind in the district, said Chief at the Office, Kedar Bar Read More...

Tarai districts at risk of floods after heavy rainfall in hilly region

RAUTAHAT: Tarai districts are at a high risk of floods as water level has risen alarmingly after incessant rainfall in hilly and Chure region in recent days. Locals residing on the banks of Bagmati and Lalbakiya rivers in Rautahat and Sarlahi districts have been living in terror of floods as Read More...

Putting the brakes on COVID-19: Safeguarding the health and rights of women and girls

KATHMANDU: The COVID-19 pandemic has sickened 16,649 people and left 35 dead in Nepal as of July 10. But the full toll of this catastrophe has been incalculably greater. The health system has been overwhelmed and the economy has been greatly impacted. Women and girls have been disproportionately af Read More...

Disputes within ruling party will be resolved: PM Oli

KATHMANDU: Prime Minister KP Sharma Oli today said that the government's entire focus is currently on saving lives of people who face threats from the coronavirus pandemic as well as from natural disasters. In his address to the nation on Friday night, PM Oli reiterated that people have to still Read More...

Barcelona or Napoli await Bayern if no upset against Chelsea

NYON: Bayern Munich will face Barcelona or Napoli in the quarter-finals of the Champions League, if they can defend their three goal lead against Chelsea in their last 16 second leg game. The Champions League will resume in August after being halted in March due to the COVID-19 pandemic with Read More...

NHRC chief draws flak for condemning Mohna Ansari

KATHMANDU, JULY 10 National Human Rights Commission Chairman Anup Raj Sharma has drawn flak for issuing a press release condemning NHRC member Mohna Ansari for criticising Samajwadi Party-Nepal’s decision to expel Sarita Giri from both the party and the House of Representatives. Sharma h Read More...

Commission on the investigation of Enforced Disappeared Persons

Conflict victims lament govt’s apathy in their joint submission

KATHMANDU, JULY 10 Various victim groups of Nepal have made a joint submission to the 37th Session of the Working Group on Universal Periodic Review of the United Nations Human Rights Council, drawing its attention to the Government of Nepal’s persistent failure to deliver truth, justice, repar Read More...

Gaindakot, Nawalparasi

East-West Highway obstructed as flood sweeps diversion in Nawalpur

KATHMANDU: The East-West Highway has been obstructed since a diversion was washed away by a flash flood at Gaindakot section in Nawalparasi (East) district. It has been learnt that the vehicular movement along the highway came to halt after the flooded rivulet in Thumsi swept away the culvert o Read More...