April 20: As many as 265 cottage and small industries have closed down their shutters in Banke district in the last nine months of the current fiscal year, 2023/24. 

While only a small number of these closures were officially registered, the majority, amounting to 165, occurred due to failure to renew licenses on time, according to Kashilal Adhikari, Information Officer at the Office of Cottage and Small Industries in Banke.

A total of 105 enterprises registered under industry and 160 under commerce firms were shut down, informed Adhikari, adding that industrialists often cite their family issues as a reason for closing down their industries.

 It may be noted that the district had recorded closure of 160 cottage and small industries in the last fiscal year, 2022/23. 

Various factors have contributed to the shutdown of small scale industries such as COVID-19 pandemic's lingering impact, high interest rate of banks, liquidity crisis, said Madhu Khadka, President of the Federation of Nepal Cottage and Small Industries, Banke's Chapter.

Closures of many small-scale industries have resulted into displacement of many entrepreneurs from Nepalgunj. (RSS)