Kathmandu, Feb. 14
Prime Minister Puspa
Kamal Dahal Prachanda said on Tuesday that cottage and small industries that
have potential for growth would be freed from all taxes for a certain period,
and special programme would be launched to enhance their capital, technology
and access to finance and market.
Addressing the inaugural
programme of the 16th International Industry Trade Fair and Cottage
Industry Festival and 6th Organic Agriculture Exhibition 2023 that
kicked off at the Bhrikutimandap Exhibition Centre in the Capital, he pledged
to introduce special programmes with redefining the subsidised loans provided
to the cottage and small industries in the manufacturing sector to encourage
them.
The Prime Minister also said
that the attention of the government had been drawn to the complicated system
of submitting documents and revenue from ward of the local body to the federal
government as well as to the Company Registrar's Office for the registration
and renewal of the cottage and small industries. "It has a negative impact
on the creation of the business-friendly environment. The government will soon
find a solution to it," he informed.
In the past several
years, the government has announced to establish micro-enterprise village,
cottage and small industry village at the local level but there has been no
progress. According to PM Prachanda, arrangements will be made for the
establishment and operation of such industrial village by the federal
government. Grant would be provided to the local governments for the operation
of such facilities.
Acknowledging that the
policies and programmes of the three levels of the government failed to
compliment each other in terms of building a positive industrial environment in
the country, the Prime Minister pledged to formulate progressive industrial
policy in coordination with all of them.
Meanwhile, he also said
that the concessional loans for women, youth and agricultural entrepreneurs
will be made more effective. Likewise, for the promotion of production and
consumption of indigenous goods, the Prime Minister's Office will form a task
force with the participation of the private sector for the immediate
implementation of Prime Minister Domestic Product Production and Consumption Promotion
Programme.
PM Prachanda further said
that agricultural-based industries could be the most viable business for Nepal
however, there is a need to produce agricultural products that are original and
linked to our culture and tradition.
President of Federation
of Nepalese Cottage and Small Industries (FNCSI), Umesh Prasad Singh, said that
the entrepreneurs are on the verge of bankruptcy due to the acute shortage of
liquidity in the recent past and exorbitant bank interest rates.
"The cottage and
small entrepreneurs neither have the facility to get refinancing nor ability to
pay the interest in the pretext of decreasing production and business and
increasing cost and interest rates," he said.
Singh demanded to
continue with the concessional loans for women, youth and agriculture
entrepreneurs and make it more effective.
Likewise, Minister for Tourism,
Industry and Cooperatives of Bagmati Province, Dambar Tamang, stressed on harnessing
technology to expand market, and promote Nepali products in the international
markets.
According to him, cottage
industries also help to empower women with skill development, application and
promotion.
"We need to promote
our original products, that carry our culture, tradition and use local
resources globally. Entrepreneurs should pay attention to the branding of their
products," said Minister Tamang.
According to the FNCSI,
there about 246,000 cottage and small industries in operation across the
country. This sector has total investment of Rs. 353 billion and provided
employment to 2.46 million people.
The expo features various
products ranging from agriculture, garment, food, natural fibre, technology,
spices and pickles to leather goods.
The fair has come back
after a pause for three years in the past due to the COVID-19 pandemic. It will
run for five days till 18 February.
Published in The Rising Nepal daily on 15 February 2023.
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