Govt delays to form committee to study textile industries

Kathmandu, Aug 5: The government has delayed to form a special team to study the status and challenges of the Nepali textile industry.

Although the Ministry of Finance (MoF) has designated a coordinator of the team, it is yet to come to a shape and begin its work.

 Nepal Textile Association (NTA) said that it was waiting for the early completion of the committee, and wanted solution to the problems long faced by the businessmen.

“We have been informed about the personalities to be included in the team but there has no progress beyond that,” said Jitendra Lohia, Vice-President of the NTA.

Joint-Secretary of Revenue Management Division at the MoF Hari Sharan Pudasaini will lead the team.

There have been talks about completing the committee formed to study the problems of the textile industry in the country and find the possible solutions but due to some administrative reasons it has been delayed, said Yam Kumari Khatiwada, Secretary at the Ministry of Industry, Commerce and Supplies (MoICS).

“The ministry is serious about the issues of the industrialists; they have raised some genuine demands,” she added.

Following multiple delegations and requests from the industrialists, the MoICS and MoF have said about a couple of weeks ago that a special team would be formed shortly to analyse the status and challenges of the sector.

The team will hold discussion with the business community and devise effect measures to support the businessmen, incentive framework and controlling the smuggling of textile from India and China.

The NTA has been asking to the government to implement protection measures to save the one of the largest employers in the country. There is Rs. 20 billion investment in the spinning mills and Rs. 7 billion in textile industries, both the sectors have employed about 250,000 people.

It has demanded raise in import duties in textile, review the decision to annul Value Added Tax (VAT) refund system, and tighter regulation of the border points with India and China.

Published in The Rising Nepal daily on 6 August 2018.