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Despite applying for government-announced subsidies two years ago, large Nepali industries exporting goods worth over Rs 500m have yet to receive the promised financial support. The subsidies, aimed at boosting exports and addressing the trade deficit, were introduced in Oct 2022 with a provision offering up to eight percent cash back for qualifying industries. However, bureaucratic hurdles and government delays have left industries waiting for payments, adding to their frustration.

Industries such as yarn, cement, clinker, steel, bottled water, information technology, and business process outsourcing had applied for the subsidies under the scheme. Despite their compliance with the application process, the government has failed to deliver on its pledge, citing lower-than-expected revenue as the reason for the delay. The unpaid subsidies are estimated to have exceeded Rs 2bn.

In addition to the export incentives, the government owes around Rs 50bn to the construction industry, Rs 13bn for covid insurance, and millions more for agricultural insurance. Industrialists have expressed their discontent, claiming that while they are expected to pay taxes on time, the government has not honored its subsidy commitments.

The subsidy process involves navigating through multiple government departments, including customs, the Department of Industry, Nepal Rastra Bank, and the Ministry of Finance. Some applications from last fiscal year remain unprocessed, further aggravating the situation.

A delegation from the Federation of Nepalese Export Association (FNEA), led by its chairman, Pawan Golyan, met with Finance Minister Bishnu Paudel to address the issue. While Paudel acknowledged the budget constraints, he promised to resolve the issue and set a deadline for the release of payments. However, no progress has been made so far, leaving industrialists disappointed with the lack of government action.

Many industrialists have criticized the government’s failure to deliver on its promises, questioning why the subsidies were announced in the first place if the government was not prepared to follow through. With the private sector initially welcoming the export promotion program, the continued delays have dampened their enthusiasm, hindering industrial growth and investment.

The Nepal Stock Exchange (NEPSE) plunged by 20. 41 points to close at 2,645.39 points on Wednesday.

Similarly, the sensitive index dropped by 3. 45 points to close at 477. 26 points.

A total of 15,742,514-unit shares of 324 companies were traded for Rs 6. 27 billion.

Meanwhile, ICFC Finance Limited (ICFC) was the top gainer today with its price surging by 10. 00 percent.

Likewise, Mahuli Laghubitta Bittiya Sanstha Limited (MSLB) was the top loser with its price dropped by 4. 28 percent.

At the end of the day, the total market capitalization stood at Rs 4. 20 trillion.

The price of gold has increased by Rs 800 per tola in the domestic market on Wednesday to set a new record.

According to the Federation of Nepal Gold and Silver Dealers' Association, the gold is being traded at Rs 166,700 per tola (11.66 grams) against Rs 165,900 on Tuesday.

Similarly, the price of silver has increased by Rs 35 and is being traded at Rs 2, 135 per tola.

Tea cultivation has been initiated in the tourism area of Aamchok Rural Municipality to boost local income and promote tourism in Bhojpur. The project involves greening 14 plantations with significant tourism potential, contributing to the rural municipality's overall economic growth. The initiative, started in 2017/18, aims to utilize vacant land to expand tea cultivation and attract tourism. 

According to Ashok Rai, Chairperson of the rural municipality, “The municipality has invested Rs 45m so far.” Tea farming has been expanded in Wards No. 1, 2, 3, and 6, where the climate is suitable for cultivation. Rai emphasized the long-term plan to develop tea plantations, utilizing vacant land with strong tourism potential. 

“The municipality has systematically expanded tea cultivation over the past six years,” said Rai. “We aim to boost income and tourism by making good use of the vacant land. So far, about 1,400 ropani have been cultivated.” He believes the higher areas of the municipality have great potential due to favorable climate and geography. Programs are being conducted to encourage locals to plant tea on their private land.

Rajinkumar Rai, a local farmer from Balankha, noted that the higher areas are ideal for tea cultivation. “The municipality has encouraged us to expand tea farming, both for income and tourism.” The Aamchok Tea and Coffee Cooperative has been formed to manage the project systematically, with shares distributed to local residents, especially those with weak financial means. Of 10,000 shares, 9,000 were distributed by the village council, and 1,000 were allocated to poor and underprivileged families in the ‘D’ category.

According to municipal data, shares have been distributed to 1,163 extremely poor families in the affected areas. The rural municipality plans to establish a tea development organization once the necessary laws are in place.

Chief Administrative Officer Dhankumar Rai stated that a tea factory is being established in Ward No 2 to process the tea. The factory, funded by Rs 4.5m from the municipality and Rs 10m from the Koshi state government, is nearing completion.

“The work of expanding tea cultivation is ongoing, and the tea processing factory is in its final stages,” Officer Rai said. The municipality is also developing its own tea nursery, producing around 500,000 plants for the upcoming season. Along with tea, efforts are being made to expand coffee cultivation, with a coffee nursery also under development.