Kathmandu, May 9
The entrepreneurs
running large, medium and small industries are in a dilemma about resuming
production after being shut for about seven weeks.
They pointed out
that the access to banks and financial institutions and markets, management of
human resources and raw materials were the major challenges that could force
especially the manufacturing industries to remain off the operation as long as
the lockdown lasted.
More than
three-fourth of the industries, especially the large plants, closed operation
with the imposition of lockdown on 24 March.
"I don't
think most of the industries can come into operation following the guidelines as
they have to exhibit their mettle to arrange human resources and raw materials
amidst the restrictions for making movements," said Krishna Prasad
Adhikari, Vice-President of Confederation of Nepalese Industries (CNI).
The government
has said that all business enterprises that intend to resume production during
the lockdown should strongly adhere to the guidelines prescribed by the World
Health Organisation (WHO) and the Ministry of Health and Population.
A Cabinet meeting
decision on Wednesday had allowed the enterprises and industrial set ups to
resume operation barring hotels, restaurants, civil aviation, mass
transportation, malls, religious gatherings and celebrations, parks, sports
activities, and educational institutions.
Industries will face
challenge in selling the products as the market centres across the countries
are shut, and the government has allowed the opening of only the department
stores and malls selling foods and necessary items, not other products like
cement, steel, garment and footwear. Yet consumers are facing trouble to reach
the malls to buy even the food items.
Nepal Foreign
Trade Association has expressed concerns over the transportation of the
produced goods to the market.
It said that
unless the wholesalers and retail shops are opened, and seamless transportation
of goods is ensured, operating the industries is meaningless.
"Produced
goods reach the consumers through the wholesalers and retailers. It is
difficult to obtain passes for the vehicles and transport the goods to the
suppliers," said the NFTA.
The business body
has demanded with the government to create a convenient environment for the
resurrection of the entire supply chain in order to bring the manufacturing
industries back to life.
Lockdown in
India hinders supply of raw materials
Adhikari pointed
towards another burning challenge of raw materials. Since most of the large
industries except some like the cement import raw materials, another system
needs to be put into action to facilitate import. More than 65 per cent of
Nepal's foreign trade happens with India which is also the largest source for
the raw materials from garment to MS billet while the southern neighbour is
also in lockdown imposed to check the spread of coronavirus pandemic.
"Without
opening of markets in India, it will be difficult to import raw materials. Only
some medium and small enterprises running on domestic raw materials can sustain
in case the lockdown is prolonged as they have limited stock of the
resources," said Adhikari.
Human resources
will be the greatest challenge since most of the workers have reached their
homes in different parts of the country. "Especially the small and cottage
industries will face problem in the mobility of the workers. Many of them do
not have their private vehicle to carry the staff and workers while public
vehicles are not available," said Suresh Pradhan, former President of the
Federation of Nepalese Cottage and Small Industry (FNCSI).
He said that the
cottage and small industries will face problem in arranging capital to run the
business so the government should inject money to keep the enterprises alive.
As most of the
industries do not have residence facility inside the factory premises, they
will face difficulty in making the workers available. The government must
facilitate the industries to run them in a sealed environment with workers
staying inside the factories, suggested Pradhan.
Meanwhile,
workers that return from their homes in other towns and villages may not be
welcomed by the house owners. "The government should facilitate in brining
the workers from green zones to the industrial area and the District
Administration Office should coordinate in this," recommended Adhikari.
Women and
small enterprises may not revive
The Federation of
Women Entrepreneurs' Association of Nepal (FWEAN) has drawn attention to the
higher risks to the survival of women-run enterprises.
"Most of the
women entrepreneurs are limited to small and cottage industries. Only 2-3 per
cent large businesswomen have obtained bank loan for their enterprises so the
government announced relief won't be useful for the majority of us," said
Sharada Rijal, Immediate Past President of FWEAN.
She termed the
government decision to allow the industries to operate an ‘unrealistic’ as it
did not state clearly about the mobility of the workers and goods during the
restriction.
Demand for
sustainable system
However, the
business bodies have asked the government to create a well-managed system to
distribute the mobility passes to the entrepreneurs and workers.
The CNI has urged
the enterprises to adhere to health and safety standards. It has suggested the
government to categorise the country in red, orange and green zones and
continue with the opening of businesses in less-riskier areas.
Minister for
Finance Dr Yuba Raj Khatiwada and Minister for Industry, Commerce and Supply
Lekh Raj Bhatta have expressed their intentions to facilitate in the revival
and rehabilitation of the industries and economic activities. However, the
private sector is confused as there are no clear indications of sustainable
system for market, human resources, access to capital and raw materials.
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