The highest capacity utilization in the last fiscal year was seen in the noodle industry (96.94 percent) and the lowest was in the dry syrup (8.30 percent).
The industries, whose capacity utilization was above the average, were concrete, tablets, aluminum, mustard oil, rosin, plywood, animal feed, and alcohol. While the average capacity utilization of dry syrup has declined, its production has increased in the last fiscal year. According to the NRB report, the production of dry syrup has increased by 107.5 percent in FY 2021/22. The improvement in the production of pharmaceutical products, according to the NRB report, is due to a surge in the demand as well as the addition of new plants in the industries. Lumbini Province has been the mainstay of Nepal's cement production but cement production in the province declined by 1.1 percent in FY 2021/22. Out of the 60 cement industries operating in Nepal, 45 are in Lumbini province. The slowdown in construction and infrastructure work has affected the demand for cement, which resulted in a decline in production. The production of synthetic fabric has decreased the most by 45.49 percent. This is mainly due to a slowdown in the demand in the market as well as a rise in the price of raw materials in the international market. Among the major industrial products, paper production increased by 48.31 percent, rosin production by 38.84 percent, wheat flour by 18.48 percent, electric wires and cables by 18 percent. The production of rice declined by 22.09 percent, plastic goods by 12.98 percent, and alcohol by 5.02 percent. Industrial loan The industrial loans disbursed by the banks and financial institutions (BFIs) to the industrial sector decreased by 4.49 percent in the last fiscal year. The BFIs disbursed industrial loans worth Rs 119.19 billion in FY 2021/22. Such loans had increased by 14.93 percent in FY 2020/21. According to the NRB report, BFIs' loans to the mining industry increased by 33.36 percent, agriculture, forestry, and beverage industry by 36.59 percent, non-food product manufacturing industry by 10.90 percent, and metal manufacturing machinery and electronics industry by 25.46 percent. The loans to the construction industry declined by 65.14 percent, and electricity, gas, and water-related industries by 45.98 percent. Of the total loans disbursed in the Lumbini Province, 16.83 percent went to the industrial sector. Of the total industrial loans disbursed in the province, Rupandehi district has the highest share of 61.83 percent while Rukum-East has the lowest share of 0.04 percent. Banke has a share of 16.22 percent, Dang has 5.99 percent, Kapilbastu 5.66 percent, and Nawalparashi West has 5.75 percent.
