New Industrial Enterprises Act should promote investment: Stakeholders

Kathmandu, January 9

The new Industrial Enterprises Act, which is currently being prepared, should focus on promoting investment, without incorporating provisions that control entrepreneurship and business growth, said stakeholders today.

They said that the new law should ensure better incentives for doing business in Nepal and adopt measures to raise the contribution of the industrial sector in the gross domestic product of the country. The views were expressed during an interaction on draft of the ‘Industrial Enterprises Bill’ jointly organised by the Society of Economic Journalists-Nepal (SEJON), Economic Policy Incubator and UK Aid.

“The draft of the Industrial Enterprise Bill seems to have adopted stricter provisions on fine and punishment even for a minor offence,” said Shekhar Golchha, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). “These provisions should be revised.”

Hari Bhakta Sharma, president of the Confederation of Nepalese Industries, said the new law should be liberal. “The government must change the provision that restricts sales of land bought by industrialists to set up an enterprise,” he said.

Shankar Sharma, former vice chairperson of the National Planning Commission, underlined the need for strong coordination between various government agencies for effective implementation of the law. “There are several good provisions in the draft bill despite some weaknesses. But the key to effective implementation is strong coordination between government agencies,” added Sharma.