Industry
The Confederation of Nepalese Industries (CNI) has urged the government to roll back its decision to increase the rent of land in the industrial sector, warning that this will “hamper the productive sector's investment”,
The team led by CNI acting president, Krishna Prasad Adhikari, met the Minister of Industry, Commerce and Supply, Dilendra Prasad Badu and the secretary for industry, Arjun Prasad Pokhrel and requested them to help resolve the problem.
“Impact of economic depression due to covid-19 has been still going on and these decisions regarding the increase in rent by 687 percent will be difficult to bear by the industry,” CNI said in a statement.
The Industrial District Management Limited (IDM) held a meeting on July 6, 2022, and decided to take the rent from July 17, 2018, with a retrospective effect. Previously in 2019, the then industry minister had decided to not execute the rent increment decision, as it required more research and analysis.
They said that the rent increment will “hamper the growth and lead to the decline of industrial sector which will directly affect the export policy and the dream of better positive international trade will be shattered”.
IDM has also reacted to the disagreement by industrialists, according to the statement. “IDM has been not been increasing the land holding time or land lease and not providing confirmation regarding and renew of bank credit, loans and other financial assistance.”
This has led to a cease in the operational activities of the industry.
Adhikari requested the ministry to solve the problem as soon as possible and that the structure of IDM should be reviewed.
In reaction to CNI’s request, Badu mentioned that the issue of rent increment has been put high on the priority list and it will be solved in coordination with the private sector, according to the statement.
“The secretary of industry, Arjun Prasad Pokhrel, has also emphasized on the matter that there should be an easy access and process in the industrial zone and these type of issues like rent increment should be solved in a long term way as soon as possible,” the statement said.
