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Now is the time to change the mindset, stable policy is needed to create industrial environment: Anil Kumar Sinha

nabil bank

There is no alternative to creating an industrial environment in Nepal to strengthen the economy.TAG_OPEN_div_107 Remittances are largely influenced by the nature of our economy. Youths have gone abroad to work, and the remittances received from their labor are sustaining the country’s economy.

We have not been able to run our industrial establishments. Everyone has seen the condition of the industrial establishments run by the government. No government institution or establishment without a monopoly is not in a position to run. Some of these establishments are also closed. On the other hand, the increasing responsibility of the government and the state is challenging. For example, the Udaipur Cement Factory. Hetauda Cement Factory, Butwal Thread Factory and Gorakhkali Rubber Industry were shut down. This does not mean that the government will do business on its own, but it should create a conducive environment for the private sector to run trade, industry and factories.

How do you create the right environment everywhere? It certainly doesn’t happen with the effort of one person. The government or the legislature should not just make laws. You also have to look at how the law is enforced. After that, the government will have to consider the difficulties faced by the businessmen to run the business, industry and factories. It is necessary for the workers, employees and workers working in the industry to have a positive opinion. Problems like strikes in industries and factories are also found from time to time. If we look at the example so far, in some cases, the issue of human resources is one of the reasons why the industry is not running. Some industries have incurred losses and in some cases, entrepreneurs have felt insecure.

For this, we need to go for a positive attitude. The role of the media is also indispensable in this. The media has also sent out a negative message about the industrial sector. As a result, it is not helping to create an industrial environment. Those who try to work, come under suspicion, their morale is low. If entrepreneurs are allowed to do it, they can empower the government themselves. Only then can the country move towards prosperity. Otherwise, we are trapped in two big economies. If we have to export everything, we have to compete for our products. We are finding it difficult to compete in that competition.

However, we have to suggest a solution. I see it as the wheel of a bicycle. This cycle means that the government will create an environment for investment. In that investment environment, the government will ensure investment. It simplifies the process. Human resources are required to devote minimum time to government activities. Most of the permission or registration process can be done online. The compulsion to go to the government office to see the face should be reduced now. It is the government’s job to create that environment.

Then the bank has to create its own investment environment for investment, for simple and easy investment. Entrepreneurs have to create new ideas. After that, after the businessman establishes the business, everyone has to support him to move it forward smoothly. Workers shouldn’t just create problems. In some cases, there is a positive role for workers or trade unions. However, we have not been able to pay attention to the positive role whenever there is a problem in some industries. In such a situation, a little change in thinking is necessary. Now the time has come.

The trade unions also need to make a positive change in their thinking.TAG_OPEN_div_95 We will have enough to eat only if it is produced. The country can become prosperous. We can be successful only if we are able to produce, produce at a low cost and send our products to competitive markets. For this, a positive environment should also be created from the trade unions. After that, it is the job of the businessmen to find the market and it is the government’s job to facilitate it. The next step is to pay tax on the money earned.

The tax office is also of the opinion that the more tax can be levied, the better. Revenue comes in for the government. The government can do some of its work from that revenue. The government’s expenses are met by it. But after cutting down the tree and cutting its roots from the bottom, it could not bear fruit. One year will be taken, two years will be taxed, three years will be collected. Then? It also needs to be evaluated. In the last 10 years, has the property been affected due to the imposition of tax under the Income Tax Act or the tax under the Value Added Tax (VAT)? Was it only affecting the business or was it affecting the wealth of the industrialists and entrepreneurs? It is also necessary to study this matter a little.

Tax offices, revenue offices are found to be working only in the interest of the nation. But raising money is not the only interest of the nation. The continuation of that industry for tomorrow is also in the interest of the nation. If any industry is not able to run due to taxes, then they should evaluate it themselves and introspect what needs to be improved. If there is a dispute, it should be resolved soon. You have to go to court only when you reach the final point. Once we go to the judiciary, we have to evaluate whether we have sought the path of justice in a simple way or not. There is no easy path. We have said that one hundred percent of the disputed amount should be deposited. To keep it 100 percent, he had to sell his house and land, he had to take a loan from the bank. Banks do not give loans to pay taxes. If entrepreneurs have lost their ability to pay taxes and deposit deposits, then the judiciary may have to look at it from a different perspective.

The judiciary also has to see whether its decisions have been implemented or not. The judiciary has to look at itself from the point of view of providing a little bit of ease to the private sector. If we can spin this one bicycle like this, I think it can be a good achievement. The government-owned institutions collapsed due to the construction of recruitment centers. That’s the first reason. The second reason is that there are provisions related to the procurement process, and due to the corruption in the procurement work, the government-owned corporations have collapsed. You go to the market. You can buy the same goods at a cheaper price than the price purchased by the government corporation.

} After saying this, it is being wasted somewhere. Because of that obligation, the corporation cannot compete. How did the rate of raw materials purchased by the industries run by the private sector be different from the rate of raw materials purchased by the government-owned corporations? The presence of human resources is more than what the private sector has produced using human resources. Other expenses such as electricity and water can be miscellaneous. If the expenditure is more to the government than to the private sector, then it will have an impact on production. And why do people buy expensive goods from government institutions? No one buys it at a high price. If it becomes official, it should be able to give it cheaply. The government is not always able to save it by subsidizing it.

If you look at Udayapur Cement today, a grant of billions of rupees has been given.TAG_OPEN_div_85 I feel very sad, I feel so painful. In fact, the employees have not been paid for seven to eight months. The resources are nowhere to be found. Nor are these industries in a position to run. There is still a sense of enthusiasm among the employees that the industry will come into operation and will take care of their expenses and that of their families. The employee says we can do it. But we are trying to figure out how to ensure the resources for that. At present, audit work is also being done to understand the condition of some of these industries. How much responsibility does an industry have? How much property do you have? It comes down to how it can be operated. The test will be completed within two to three months. The government has to pay salaries or other expenses from the money it receives from other sources. In the last 15-20 years, such industries have been brought to such a situation that it is very difficult to revive them.

Who is responsible for the pathetic condition of the government industry? Those who made appointments there under political pressure and influence or the past leaders who corrupted it. Although the tenure of the present government is short, we are trying to take its status quo to the people. We’re also listening to the staff and seeing what we can do. The Ministry of Finance has also expressed concern over this. It is considering employees. We are discussing. However, due to the lack of assurance of resources, the right path for these employees has not been seen yet. It is very painful to see that situation. There are still good employees in the industry. Those who are still ready to rebuild the company by making a living.

} Now the number of employees we have has also decreased. Some industry employees have also promised that if you help a little, we can run it. There are good mechanical engineers of the young generation in such industries. I think if we create an environment that helps them a little bit, we can make it work. It is not possible to make it profitable in such a short time.

However, it would be nice if there was some financial support from the government to support the commitment that the employees have shown that we can do it with the energy. The Ministry of Finance will discuss the matter. If we can make it dynamic by doing something and reduce the liability of the past, it can still work. In hindsight, if the government uses it in this way, there will be no obligation other than selling the land or selling the mines. Selling a mine is like selling your property without adding value to it.

Stable policies are very important to create an industrial environment. We have seen in the past that with the change of government, the policy changes. I have seen that the policy should be made only after extensive discussions. The problem arises when policies change rapidly. Many types of problems can be solved if the government creates an environment where it can work on the basis of existing policies.

Plans brought by the interim government to create an industrial environment

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The Ministry of Industry, Commerce and Supplies has also implemented a 39-point Immediate Reform Action Plan-2082 to be completed within five months in order to create an environment conducive for industrial environment.TAG_OPEN_div_74 The Ministry has planned to implement 20 reforms related to industry, eight related to commerce sector and 11 related to supply sector.

Through the implementation of the action plan, an investment-friendly environment will be created in the industrial sector and business guarantee will be enhanced, production and productivity will be enhanced, import substitution, export promotion and easy supply management.TAG_OPEN_div_72 The Ministry has assigned the task of making policy and legal facilitation for the promotion of professional good governance. For this, we have forwarded an action plan to prepare a draft of the Companies Bill-2082 to promote investment by improving the industrial and business environment.

} We are going to amend the Micro Enterprise Development Programme Operation Directive, 2077 to forward the Micro Enterprise Development Plan for poverty alleviation. The ministry has also put forward a plan to run a business promotion centre for entrepreneurship development and startup.

A plan to make policy and legal facilitation related to accreditation has also been implemented.TAG_OPEN_div_68 For this, homework to take the Accreditation Regulations-2082 to the Council of Ministers for approval has reached the final stage. Likewise, the process has been forwarded to publish a notice in the Nepal Gazette regarding the use of ‘automated route’ for all types of foreign investment approvals under the Foreign Investment Approval Facilitation Scheme.

} The process of automatically recommending to the bank where the company’s account is maintained through ‘Camis’ with the approval of the company registration has been forwarded towards the plan to increase the effectiveness of the services related to the company administration and the process of opening the account on the basis of that has been started. Likewise, the Ministry has also forwarded the process of digitizing the old records of the company, simplifying the procedures in the registration and liquidation process of the company and immediately amending the company guidelines to make it easier for the investors and the company to increase the effectiveness of the company (documents including Memorandum of Association and Articles of Association to be attested by a lawyer, removing the compulsion of third parties, including sweat share employee stock in the management procedure, and managing the issue of company liquidation). It is doing the necessary work.

The scheme has been implemented to collect and maintain records of the real owners related to the company, industry and business and to send the information to the informing organization. We are immediately initiating the process of developing the Mines Management Information System (MMIS) for the works related to mining administration including permitting and renewal of mines and minerals under the simplified plan of the Mines and Mineral Administration.

In order to make the process of transfer of lease and services from the industrial zone to more transparent, necessary amendments, amendments and scrapping provisions have been made in the regulations as well as the process of reducing the land rent rate of the Special Economic Zone from Rs 20 to Rs 5 per square meter under the incentive scheme for the establishment of industries in the Special Economic Zone TAG_OPEN_div_62 ।

A plan has also been made public to prepare and operate an electronic portal called ‘Nepali Products’ to facilitate and systematize the purchase and sale of domestic goods in collaboration with the private sector for the promotion of domestic production and market.TAG_OPEN_div_60 Likewise, an arrangement has been made to monitor the blacklisted import exporters under the Transparency Promotion Scheme and provide details to the indicator agencies.

Sinha is the Minister of Industry, Commerce and Supplies.TAG_OPEN_strong_53

From the Economics of the Society of Economic Journalists (SEJ)

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