Nepal | July 03, 2020

Private investment in industrial estates up

Umesh Poudel
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Kathmandu, April 8

Private sector investment across different industrial estates in the country accounts for 97.84 per cent of the total investment in the country’s 10 industrial estates. Investments made by private industries stand at Rs 20.26 billion out of the total of Rs 20.71 billion.

According to the Department of Industry (DoI), government-owned industries hold 2.16 per cent of the total investment worth Rs 440 million. Secretary at the Ministry of Industry, Commerce and Supplies, Yam Kumari Khatiwada, has said that the number of private industries has been rising in recent years as the government has been encouraging private investors to operate industries within the industrial estates.

“The government has been providing the infrastructure, appropriate policies and necessary facilitation for private sector investment in most industries,” she stated. “The government will operate only those industries that are critical for the delivery of goods and services of the government.”

As per DoI data, there are 575 industries that have been established in all the 10 industrial estates. Meanwhile, 68 industries are under construction and 36 have been closed down. Looking at the current trend, most businesses are preferring to invest in the industrial estates located in Balaju, Hetauda and Pokhara, due to their investment friendly environment.

Of the 10 industrial estates, the Balaju and Hetauda industrial estates were built on the initiative of the government of the United States of America. Meanwhile, the major contribution in establishing industrial estates has been from the Indian government, which helped set up the industrial estates in Patan, Dharan, Nepalgunj and the Gajendra Narayan Industrial Estate in Janakpur.

Likewise, the industrial estates in Bhaktapur and Birendranagar were constructed with the help of the governments of Germany and the Netherlands, respectively. The government of Nepal was responsible for establishing the industrial estates in Pokhara and Butwal.

The contribution of the industrial estates to the country’s gross domestic product stands at around five per cent at present. Though the government has set a target to increase this to 20 per cent, it has not yet been able to do so.

Comparative figures
Name of industrial estate Private investment Government investment Number of employment
Balaju 5000 110.60 4100
Patan 2000 47.60 2000
Hetauda 5910 85.4 4000
Bhaktapur 600 27.4 800
Dharan 300 21.3 900
Nepalgunj 1120 24.7 994
Pokhara 2460 37.6 2298
Butwal 2700 30.1 1617
Birendranagar 50 14.4 300
Gajendra Narayan 120.83 40 28

Investment figures in Rs million; Source: DoI

A version of this article appears in print on April 09, 2018 of The Himalayan Times.

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