January 16: Banks and financial institutions have provided a lending of more than Rs 100 billion to industries in Madhes Province in the fiscal year 2078-79. 

A report prepared by the Nepal Rastra Bank’s Madhes Province Office on economic activities shows that banks and financial institutions have given a total credit of over  Rs 102.13 billion to the industries in Madhes Province in the fiscal year of 2078-79. 

In the previous fiscal year, a total credit flow to industries stood at Rs 105.23 billion in the province. 

Banks have issued highest lending to industries in Parsa. Out of the total industrial credit, 56.05 percent of the loan has been provided to the industries in Parsa. 

Many industries have opened along Birgunj-Pathlaiya Industrial Corridor due to proximity to Birgunj Customs Office. 

Chairman of the Madhes Chapter of Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Ganesh Prasad Lath says that credit flow is high to the industries in the corridor due to the presence of a large number of industries there.

Out of total lending in the province, industries in Saptari have received the least amount of loan. Industries located in Saptari have been issued only 2.51 per cent of the total lending. 

Of the total credit flow, industries manufacturing non-food items have received the highest amount of loan. The non-food manufacturing industries have received 52.39 percent of loan while 30.57 per cent of the credit has flown to industries manufacturing products related to agriculture, forest and drinking items. 

Likewise, 7.62 percent credit has gone to industries manufacturing goods related to metals, machinery and electronics while construction industries account for 7.27 per cent of the credit flow.

Credit flow to the mine industries and electricity, gas and water industries stands at 1.66 and 0.48 per cent respectively.
The average production growth rate of industries has gone down during the review period in the province. Production growth rate of 30 sampled industries during the review period is 5.23 per cent.

Average production growth rate, nonetheless, was 12.10 per cent in the previous year. In the review period, the production of leather and leather-related goods increased while plastic manufacturing industries’ production had slumped.