386k industries registered in first eight months of FY

386k industries registered in first eight months of FY

A total of 386,135 industries were registered in the first eight months of the fiscal year, generating employment opportunity for 2.77 million individuals, according to an economic survey report published by the Ministry of Finance on Sunday. The newly-registered industries include 758 large, 1,387 medium, 3,808 small and 380,182 micro enterprises.

The report states though an increase in remittance and establishment of associations has increased demand for goods in the market, boosting the economy, lack of competitiveness played a role in preventing the industrial sector from growing.

“The report has rightly marked the industrial sector has failed to become competitive,” Pashupati Murarka, president of the Federation of Nepalese Chambers of Commerce and Industry said. “And this is because of the lack of energy.”

On one hand, industries have not been able to operate at full capacities, and on the other the dependence on generators have pushed up the cost of production, he said, adding there were still some labour issues to be addressed. “Though the relationship between industrialists and workers has improved, there still is room for improvement,” Murarka said.

The report has revealed 284 industries ad acquired operation permit from the government in 2013-14. These industries have invested Rs82.86 billion and have provided employment to 14,501 individuals. A total of 5,931 industries had acquired permit for operation as of fiscal year 2013-14. Of the industries acquiring permit, 44 percent are manufacturing industries , 27.5 percent service-oriented and 18.2 percent tourism industries . A total of 305 industries

with foreign investment acquired permit in 2013-14, down 3.78 percent compared to the same period a year ago.

In the first eight months of the fiscal year, 213 industries having foreign investment have acquired approval for operation in Nepal. These industries are expected to generate employment opportunity for 8,869 individuals.

Around 54.45 percent investment pledge has come in the energy sector, followed by 9.03 percent in service sector, 5.82 percent and 29.57 percent in tourism and manufacturing, respectively. “Apart from energy, we have not been able to generate enough foreign investment,” Murarka said, adding implementation of Acts and policies needs to be intact for luring foreign investors.

According to the survey, the government has prioritised establishment of industries and developing physical infrastructure for helping industrial sector boom.

Almost of the 11 industrial estates, besides Dhankuta industrial estate, are in operation. The others are those in Balaju, Hetauda, Patan, Nepaljung, Dharan, Pokhara, Butwal, Bhaktapur, Birendranagar, Gajendra Narayan Singh Industrial estate.

In the first eight months of the fiscal year, 10 industrial estates leased out 3,927 ropanis of land. These estates have 531 industries . ile, 63 industries inside the estates have closed, 65 are under construction.

Source: eKantipur