SEZs struggle to attract industries
The government decided to establish Special Economic Zones (SEZs) in the early 2000s with the objectives of increasing production, promoting exports, creating employment, attracting domestic and foreign investment, and achieving economic prosperity.
However, even after 20 years, neither have SEZs seen sufficient industries, nor has employment been generated as expected. So much so, the work of establishing SEZs in Biratnagar, Dhangadhi, Panchkhal and Gorkha has not gained momentum. Although some industries have opened in Simara and Bhairahawa SEZs, the results are not as expected.
Industrialists and businesspeople complain that the government built SEZs but did not create a conducive environment for establishing industries and factories. High rental fees, lack of favorable supply-related policies, bank guarantee requirements, and cumbersome administrative mechanisms make it difficult to set up industries in SEZs, they added.
The government is preparing to organize the Nepal Investment Summit on 28, 29 April 2024, with the objective of attracting domestic and foreign investments.
Although 49 industries have been given permission in the Bhairahawa SEZ, only nine are currently in operation. These industries employ around 500 people.
The government has invested Rs 13.68bn in Bhairahawa and Simara SEZs. If these two SEZs operate to their full capacity, they alone can generate 34,374 jobs. But due to a lack of private sector investments in SEZs, production and employment opportunities have been lost.
Tulsi Ram Marasini, acting executive director of the Special Economic Zone Authority (SEZA), said although the government has announced plans to establish SEZs in all seven provinces, work has not progressed due to difficulty in raising investment.
Bhairahawa SEZ had generated interest from the private sector initially. As many as 25 companies have received permission to set up their plants in the Bhairahawa SEZ. However, only seven are currently operational. They include Shakti Minerals, V-star Global, Tirupati Metal, Brilliant Lighting Industries, Panchakanya SS, S Plastic Production and Jaya Buddha Metal Craft. Each of these industries employs around 100 people.
According to SEZA officials, some industries have stopped production citing problems in power supply among other issues. Fifteen companies had applied at SEZA to set up industries in Bhairahawa SEZ. However, they have not opened industries even though they received permission four months ago. Now, the SEZA is preparing to terminate their contracts.
Sagar Silwal, the senior assistant spokesperson for SEZA, said most of the companies have not been able to operate industries due to a provision that requires industrial enterprises in SEZs to export at least 60 percent of their total productions. “Companies have complained to us that they are not being able to operate industries due to the mandatory export requirement and high rental fee,” he said, adding: “The government is preparing to show some flexibility.”
Likewise, only two industries out of 11, which have received permission, are currently in operation in the Simara SEZ. Nine more industries are at different stages of receiving approval.
Pashupati Ceramics and Lalita Kumari Srivastav Company are the two companies currently in operation in the Simara SEZ. These companies employ some 250 people.
Although the Panchkhal SEZ has been under construction in Kavre for the past five years, work progress has not been satisfactory. Since the SEZ lies 70 km south of the Nepal-China border in Kodari, it is expected to attract companies targeting the Chinese market.
The government has acquired 1,000 ropani of land for the Panchkhal SEZ. Officials say construction work has been affected due to a lack of approval for forest clearance.
Works on the other four SEZs are in the preliminary phase. Engineering studies have been completed at the SEZ planned in Burju Rural Municipality of Sunsari district, while feasibility studies have been completed at the SEZ in Palungtar of Gorkha. Likewise, detailed engineering studies have been completed for the SEZs planned in Kanak Sundari Rural Municipality of Jumla and Dhangadhi of Kailali.
Meanwhile, the government is reducing the mandatory export requirement for industries in SEZ to 30 percent of the existing 60 percent. Although the provision was introduced through the budget for the fiscal year 2023/24, it has not come into implementation yet. “We are amending legal provisions to reduce the mandatory export requirement to 30 percent. The amendment bill is likely to be approved before the Investment Summit,” Silwal said.
SEZA charges a rental fee of Rs 20 per square meter on industries in SEZ. The authority has acknowledged that this is the highest rental fee in the entire South Asia.
102 killed in fire incidents in one year
One hundred and two people have died in fire incidents in one year's period (from April 14, 2024 to April 3, 2024).
More than 3,795 fire incidents were reported in various places of the country during this period, resulting in the casualties, stated the National Disaster Risk Reduction and Management Authority (NDRRMA).
Four thousand seven hundred and twenty-five families have been affected due to the fire incidents in the same period, NDRRMA spokesperson Gomadevi Chemjong said.
According to her, the fires damaged properties worth more than Rs 2.33 billion.
Spokesperson Chemjong said although incidents of fire decreased as it rained in the meantime, the fire incidents have started spreading again warranting precaution.
The highest casualties due to disasters this year are from fire incidents, excepting the casualties resulting from the Jajarkot earthquake.
Forty-three people were killed due to lightning while 20 of snake bite, 12 of avalanche, 43 of wild animals attacks and five of wildfires during the same period, according to the NDRRMA data.
Four hundred and seventy-seven people have been killed in various disaster incidents since April 14 last year.
Seven Nepalis killed in India road accident
Eight people including seven Nepalis died in a road accident at Betalghat in Nainital district of India on Monday night.
According to Sub-Inspector at Betalghat Police Post, Anish Ansari, the deceased have been identified as Bishram Chaudhary, Dhiraj Chaudhary, Antaram Chaudhary, Binod Chaudhary, Tilak Chaudhary, Udayram Chaudhary and Gopal Basnet.
Based on the documents found with them, the seven Nepalis were from Babai of the then Bheri zone, according to the police.
The accident took place when a rented vehicle fell some 150 meters down the road while loading goods. They had been working there to lay pipelines along the roadside around the incident site.
A local driver along with seven Nepalis lost their lives in the accident, he shared. All the bodies have been kept at Nainital Government Hospital.
Similarly, Shanti Chaudhary, wife of Dhiraj Chaudhary, and Janak Chaudhary were injured in the incident. Sub-Inspector Ansari said police personnel as well as state disaster response teams were deputed to carry out rescue operations.
Kathmandu tops as world's most polluted city in terms of AQI
Air pollution of Kathmandu Valley has increased following the forest fires that occurred across the country for the past few days.
Based on the Air Quality Index (AQI), Kathmandu has been ranked as the topmost polluted city globally this afternoon, recording an AQI of 200.
Deputy Director General of the Department of Environment, Tara Dutta Bhatta, said there is an effect of forest fires in the air of different cities including Kathmandu.
"The air pollution of Kathmandu had also increased a few weeks ago. It becomes more polluted today," he mentioned, adding the air pollution would increase until forest fire comes under control.
Similarly, Disaster Management expert Dr Dharma Raj Upreti, said an AQI value of up to 50 is considered good while 51-100 moderate, 100-150 unhealthy and it is highly hazardous if measured 150-200.
Likewise, AQI value from 201 to 300 is considered very unhealthy while 300-400 dangerous and 401-450 very dangerous.
Air Quality Management Action Plan for Kathmandu Valley, 2076, reads that an AQI of more than 300 is considered as a disaster. It has been mentioned in the action plan not to burn garbage, to increase the use of brooms and vacuums to clean the roads to stop such type of disaster as well as to issue public notices to children, senior citizens and patients to take special precautions.
In the National Environment Policy, 2076 BS, it is mentioned that national standards related to prevention of water, air, soil, sound, electricity, magnetic waves, radioactive radiation, and hazardous chemical pollution will be prepared and implemented in order to reduce pollution.
According to the strategy, air, water and sound quality will be mapped by establishing and operating quality measurement centers in areas at risk of pollution including major cities and industrial areas.