August 13: More than 200 industries were forced to close their operations in Rupandehi in the fiscal year 2079/80 BS.

The Office of Cottage and Small Industries, Bhairahawa, reported that a total of 217 industries ceased operations, encompassing 84 production-oriented, 19 related to agriculture and forest, 63 engaged in service-oriented activities, and 51 involved in tourism-related ventures.

The closure of these industries was attributed to a range of factors, including frequent power outages, economic challenges, and high interest rates imposed by banks.  A significant number of the closed industries were concentrated in Tilottama Municipality, Siddharthangar Municipality, and Butwal Sub-Metropolis.

Madhav Poudel, the President of Rupandehi Chamber of Commerce and Industry, highlighted the alarming situation faced by industrialists within the district. He pointed out that the closure of over 200 industries in a single year underscores the challenges experienced by the local industrial community.

Poudel attributed the downfall of small industries to a confluence of factors, such as the COVID-19 pandemic, hefty loan interest rates, and policy-related hindrances in trade.

Ujjwal Kasaju, the President of Butwal Chamber of Commerce and Industry and a Central Committee member of the Federation of Nepalese Chambers of Commerce and Industries, provided further insight into the matter.

Kasaju expressed that high interest rates on bank loans, difficulties in finding markets, and the incomplete functionality of the airport were among the key contributors to the industrial shutdown.

In light of these challenges, some larger-scale industries managed to stay afloat by reducing their production capacity to between 25% and 40% of their usual output.

According to Netra Prasad Bhusal, the Information Officer at the Office of Cottage and Small Industries in Bhairahawa, the district had a total of approximately 1,030 registered cottage industries. (RSS)