Bhairahawa SEZ to Become Operational by Mid-February

The government is preparing to operationalize the special economic zone (SEZ) located at Bhairahawa of Rupandehi district by mid-February. According to Krishna Gyawali, secretary at the Ministry of Industry (MoI), the SEZ will be inaugurated by that time. “As the construction of physical infrastructures is in the final phase, we are preparing to bring the Bhairahawa SEZ into operation at the earliest possible, perhaps by mid-February,” Gyawali told New Business Age.

 

The administrative building of the SEZ has already been completed. According to Gyawali, The government has already spent nearly Rs 540 million on this project. This is the first SEZ in Nepal. In order to promote export oriented industries and encourage domestic as well as foreign investment in them, the government had introduced the concept of SEZ in FY 2000/01. 

 

According to sources, the government will provide land for establishing 69 industries with an investment of Rs 150 million each at the Bhairahawa SEZ. The government plans to establish 43 different kinds of export-oriented industries at the SEZ.

 

According to Jit Bahadur Thapa, joint secretary at the MoI, the industries inside the SEZ will get special incentives. “Industries inside the SEZ will get tax incentives including zero percent VAT on raw material and products and no excise duty on the products and services sold locally,” said Thapa. Similarly, the industries will get tax exemption on the import of machines, equipment, spare parts, vehicles and raw materials. 

 

The industries that will be  allowed to be established in the SEZ include, aluminium factory, mineral water, pulses mills, cold drinks, flour mill, dairy, tyre factories, bakery, plastic industries, textiles, automobile works, confectionary, battery, distillery, paper, gas, garments, metal and iron industries, paint industries, drug manufacturing industries, leather goods industries etc.

 

Employees’ Productivity Erodes

Nepali employees’ productivity has eroded in the last one decade (from 2002 to 2011), according to an official at the Ministry of Labour and Employment. The drop in productivity will affect employees overall growth, he said, adding that the productivity could ensure competitive salary and respectable employment situation.

 

The productivity indicator that stood at 3.71 per cent – the highest in last one decade – in 2007 dropped to -1.03 in 2011, according to the preliminary estimation of the ministry. The Employment

 

Coordination and Labour Relations Division under the ministry has been preparing a policy at present, confirmed joint spokesperson at the ministry, Buddhi Nath Bhattarai. According to the statistics collected by the ministry, some 12.13 million were employed in 2002. However, employment increased to 15.09 million in 2011.

 

Gov Confers 34 Entrepreneurs, Firms with CIP Honour

President Ram Baran Yadav on January 27 conferred 34 entrepreneurs and business organisations as Commercially Important Persons (CIP) for their contribution to the economy and commercial sector. Exporters, importers, investors, employers, foreign currency earners and tax payers, among others were awarded with a CIP identity card, a logo and a certificate amid a function held at Shital Niwas in Kathmandu. They can enjoy this status for the next two years.

 

The government had selected names for the CIP based on a report prepared by the CIP recommendation sub-committee formed under the Trade and Export Promotion Centre (TEPC). The list was approved by the Ministry of Commerce and Supplies.

 

Those awarded with the CIP honour will get high priority to meet the Prime Minister and ministers. Similarly they will get VIP privileges at the Tribhuvan International Airport. Foreigners who will get the award will get on arrival visas of 15 to 90 days.

 

CIP Awardees

 

Exporters of top 5 goods to third countries

    The Sangrila Carpet and Handicraft Industries

    Nepal Fashion

    Everest Pashmina Knit and Weaving Industries

    Triveni Daal and Oil Industries

    Asian Leather Industries

 

Top exporter to India

    Dabur Nepal, Tinkune, Kathmandu

 

Top exporter of handicrafts

    Everest Fashion, Sundhara, Lalitpur

 

Top exporter of agricultural and herbal products

    Ilam Tea Producers, Biratnagar

 

Top two exporters to China

    Api Himalayan International

    Asian Leather Industries, Duhabi, Sunsari

 

Top exporter in female category

    Sangrila Agro Trading, Thasikhel, Lalitpur

 

Top foreign importers

    Steve Tea Siver, USA (woolen carpet)

    Rising International Ink, USA (readymade garment)

    Rokiya, Bangladesh (musuro)

    Oto Gmbh, Germany (pashmina)

    Derma SRL, Italy (leather)

 

Top Indian importers

    Dabur India

    Bhusan Power and Steel, India

 

Top Chinese importers

    Beijing Medicine and Health Product Corporation, China

    Tibet Yintao Trading Company, Khasa, China

 

Top entrepreneur in terms of job creation

    Raj Kumar Golchha, Arihant Multifiber, Khanar, Sunsari

 

Top company in bringing in remittance

    International Money Transfer (IME)

 

Top hotel in terms of forex earning

    Hyatt Regency, Baudhdha, Kathmandu

 

Top travel agency in terms of tourist numbers

    Yeti Travels, Durbar Marg, Kathmandu

 

Largest taxpayer

    Nepal Doorsanchar Company