Seven firms in Bhairahawa SEZ yet to sign pact
Kathmandu, August 23
Of the 24 domestic firms that had received the government’s permission to construct factories within the Bhairahawa Special Economic Zone (SEZ), seven are yet to sign the construction approval agreement with SEZ Authority, Nepal.
Though the SEZ Authority, Nepal had published a notice two weeks ago calling the concerned firms to take factory construction approval, seven companies related to production of synthetics, mineral water, garments, shoes, herbal soap and noodles, among others, are yet to approach for the agreement to this effect,
informed Chandika Bhatta, executive director of the authority.
Bhatta informed that the SEZ Authority, Nepal will soon publish a 15-day notice urging these firms to sign the agreement. “If these firms show no interest even after the notice period has lapsed, we will take further steps.”
In case these seven firms fail to sign the factory construction agreement on time, SEZ Authority, Nepal can cancel the earlier contract that allowed them to set up factories within the Bhairahawa SEZ.
Meanwhile, all other 17 firms are in the process of constructing their respective factories inside the Bhairahawa SEZ after paying necessary rent to the SEZ Authority, Nepal. As per Bhatta, Shakti Minerals — one of the 17 firms — has already started building its factory and is expected to start production within the next four months. The company is injecting an investment of Rs 400 million within Bhairahawa SEZ.
Other business houses like Golchha Organisation, Jagadamba Group, Vaidya’s Organisation, Lohiya Group and Siddhartha Group, among others, are the domestic firms constructing their factories inside the Bhairahawa SEZ, which range from bottling plants, metal processing and industries to manufacturing polymers, beverages, electric products and noodles, among others.
The government has developed the SEZ to address supply-side constraints in a bid to boost exports. Industries established within SEZ will need to export 75 per cent of their production.