Tuesday, September 13, 2016

Govt to run closed state-owned industries

Kathmandu, Sept. 11: Minister for Industry Nabindra Raj Joshi Sunday unveiled his action plan that includes organizing national and international industrial conferences and re-operating the government-owned industries that have long been shut.
Presenting his ‘Industrial Sector Reform Action Plan’ amidst the journalists at the Ministry, Joshi said that in order to attract more investment from Nepalese and foreign investors, the government would organise national industrial conference on November this year and international conference on March next year.
“The contribution of the manufacturing industries to the gross domestic product of the country has been continuously plummeting for many years. Therefore, the government will create an investment climate to attract more investors,” he remarked.
Likewise, Minister Joshi informed that he was all set to operate the state-owned industries that were out of operation for many years.
Agriculture Inputs Company Limited, Nepal Metal Company, Nepal Oriend Magnesite Company, Birgunj Sugar Mills, Nepal Drug Company Limited, Butwal Dhago Karkhana, and Gorakhkali Rubber Udhyog are on the top priority of re-operation.
“Whatever reasons behind the closure of those industries, they will be brought to life once again. The state had invested a huge amount of money in those industries,” he said.
In the first phase, Nepal Drug Company will be operated while Birgunj Sugar Mills and Gorakhkali Rubber Udhyog will be run in the next phase.
According to Joshi, the government is developing modality to reoperate the industries. Public Private Partnership (PPP), management contract and government were major considerations for the reoperation modality.
The minister also stated that the Minister would conduct studies in the seven major cities – Biratnagar, Birgunj, Kathmandu, Pokhara, Bhairahawa, Nepalgunj and Dhangadhi – to gauge the demands of the large investors. Likewise, it will organize consultation meeting with the private sector.
Saying that the country needed a long-term foundation for industrial development, Joshi claimed that 12 Acts, bylaws and procedures would be developed and ratified by the Parliament within three months.
Minister Joshi’s action plan includes calling for letter of interest from people from all 75 districts to run community based industries and providing seed money to anyone who wants to establish and run business and industries of any scale.
It also plans to mobilize ‘entrepreneur motivators’ in all districts.
“There will be four levels of reforms – policy and legal reform, structural procedural reform, development and promotion of micro, cottage and medium industries, and establishment of industrial areas and special economic zones,” said Minister Joshi.
Joint-secretary of the Ministry Yam Kumari Khatiwada said that the government was contemplating on inviting strategic partners to run Udaypur Cement and Hetauda Cement Industry.


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