BHAIRAHAWA: Industrialists have shown growing interest in the Special Economic Zone (SEZ) operating in Bhairahawa following recent amendments to the laws by the Special Economic Zone Authority, the RSS reported.

According to the state-owned news agency, these amendments were made to facilitate industrial activities and promote exports, attracting numerous industrialists to the SEZ.

Currently, there are no vacant plots available in the Bhairahawa SEZ. Acting Executive Director of the Special Economic Zone Authority, Tulsiram Marasini, told RSS that all 69 plots spanning across 52 bighas of land in the SEZ have been leased.

Eight industries are currently operational within the SEZ. They include Shakti Minerals Pvt Ltd, Vistar Global Pvt Ltd, Tirupati Metals Pvt Ltd, Brilliant Lighting Industry, Panchkanya SS Pvt Ltd, Yash Plastic Products, Jaya Buddha Metal Craft, and Himalayan Granite. Additionally, Eco Nepal Energy Pvt Ltd, Arshi Industries, and Spurt Electronic Industries are under construction. Furthermore, agreements have been signed with Mishakh Sheikh, Deepesh Chalise, Rahul Jain as well as Larke Himal Herbs Pvt Ltd, White Mountain Mining Pvt Ltd, Tanyaegro Pvt Ltd, and Data World Pvt Ltd for establishing their industries in the Bhairahawa SEZ, the RSS further reported.

Despite the interest, industrialists have raised concerns regarding high rent, export difficulties at the border, and challenges in securing loans. Acting Executive Director Marasini assured that the government has addressed these complaints.

Initially, the Special Economic Zones Act of 2073 required that at least 60% of the goods or services produced in the SEZ be exported. This provision has been amended by the Ordinance to amend some Nepal Acts related to Investment Facilitation, now requiring at least 15% of production to be exported initially and 30% in subsequent years from the start of production.

Marasini mentioned that the provision allowing goods or services produced in SEZ to be sold in Nepal’s domestic market within one year from establishment has been extended to three years.

Previously, regulations prohibited the transfer of existing industries and their equipment into SEZ. These regulations have been amended, allowing for such transfers and operations within the SEZ.

Industrialists have called for various concessions to establish industries in SEZ. Initially, SEZ rent was set at Rs 150 per square meter, which was later revised to Rs 20. Following further complaints, the authority is preparing to reduce it to Rs 10.

Marasini emphasized that the SEZ was established not for profit but to provide maximum opportunities for entrepreneurs in Nepal. He insisted that the authority would maintain maximum flexibility to create a conducive environment for industrialists.

In the fiscal year 2076-77, SEZ reported export sales worth Rs 148 million, domestic sales of Rs 564 million, and total sales of Rs 204 million. In 2077-78, export sales dropped to Rs 85.47 million, and domestic sales totaled Rs 183 million. For the year 2079-80, SEZ recorded export sales of Rs 454.1 million, domestic sales of Rs 387.9 million, and total sales of Rs 845.9 million.

The Special Economic Zone Authority held an interaction in Bhairahawa regarding the smooth operation of SEZ. Industrialists expressed concerns that initial assurances given when establishing their industries were not fulfilled. They highlighted that the one-door system, a basic principle of SEZ, has yet to be implemented and requested the authority to facilitate it.

During the interaction, Thakur Kumar Shrestha, president of Siddharth Chamber of Commerce and Industry, noted that land rent in SEZ remains more expensive than outside. Industrialists also pointed out issues with basic amenities such as drinking water, electricity, and sanitation within the SEZ.