Deserving businesses should get the concessional loans without hassles after the necessary documents are submitted

It’s been months since the government promised relief to the business community hit hard by the coronavirus pandemic, but it is better late than never that the government has introduced an economic package worth Rs 50 billion to help medium and small enterprises and tourism businesses pay the wages of their employees.

The Ministry of Finance has issued the Business Continuation Loan Disbursement Guidelines in a bid to allow struggling businesses to avail themselves of concessional loans so that they can keep operating without having to lay off their staff and other workers.

Many countries, from the United States to the EU nations and India, had introduced relief packages in the early months of the pandemic, when lockdowns were introduced to prevent its spread. But Nepal was unable to do so, drawing heavy criticism from businesses and the commoners alike. While Nepal went for a lockdown — and a lengthy one at that — there was no accompanying stimulus package to give succour to businesses and their employees, forcing them to fend for themselves.

Businesses have been classified into highly-affected, moderately affected and less affected, and loans will be disbursed accordingly, with the first category getting Rs 100 million, the second category Rs 70 million and third category Rs 50 million respectively.

They will carry an interest of 5 per cent for the first year and 6 per cent in the second year. But once a business enterprise takes a loan, it cannot lay off its workers until it pays back what is due. The highly-affected businesses include agriculture, tourism, aviation, movie industry and educational consultancies. The moderately affected include those related to the media, educational institutions, transport, health, hydropower and beauty parlours. The less affected areas include import firms, medicine distribution, food and beverage production and e-commerce.

Nepal’s COVID-19 relief comes at a time when many countries are already introducing their second such stimulus packages to spur small and medium enterprises and safeguard jobs.

The government did introduce some measures to provide relief to the people early on, such as a 25% discount on electricity for those using more than 150 units, penalty waiver on uncleared utility bills and tax payments, and 10 per cent discount on foodstuffs sold by Nepal food Corporation and Salt Trading Corporation. But these measures did not help retain the jobs of tens of thousands of workers in the country as many businesses — big and small — have shut down in the country or are barely operating after the country enforced a months-long lockdown to prevent the spread of the coronavirus.

Now that the country has come up with a fund to help businesses continue operating, it behooves the government to see to it that the guidelines are implemented effectively and efficiently. The deserving businesses should be able to get the concessional loans immediately without hassles after the necessary documents — proof of lack of capital, assurance of continuity of employment of workers and future plan for the company — are submitted. The businesses too must utilise the loans to put the economy back on track.

Illegal crusher plant

Boulders, gravel and sand are widely-used river materials in the construction sector. However, over extraction of these materials from the river side has caused huge environmental damage, including landslides and flash floods, and health hazards to the local people.

The government has set clear guidelines to the crusher industries about where they can be set up. Before any crusher industry is set up in any part of the country, one has to prepare an environmental impact assessment (EIA) report.

But most of them have been found to have bypassed the EIA, largely because of their close links with the local politicians and elected representatives.

A case in point is Bajura, a remote district in far-west Nepal, where a crusher industry has been in operation for the last one year without taking permission from the concerned authority. Local authorities have failed to take legal action against the illegal operation, even though local people have lodged a formal complaint with the CDO and local level against it.

Elected officials of the concerned local level must take up this issue seriously and take legal action against it for causing environmental damage.