Kathmandu. NADA Automobiles Association of Nepal (NADA) has welcomed the government’s relief to the private sector for the losses caused by the Genji movement. NADA Automobiles Association of Nepal (NADA) has welcomed the relief package announced by the government addressing the pain and voice of the industries, trade and business establishments affected by the extraordinary situation created during the Zenji agitation.

A delegation led by NADA President Karan Kumar Chaudhary had recently met with the Right Honorable Prime Minister Sushila Karki and Finance Minister Rameshwor Khanal and urged them to bring a special relief package to revive the automobile industry and business that was severely affected by the agitation.

The government has made a provision to immediately pay 50 percent of the damages caused to buildings, vehicles, goods, equipments etc. on the basis of the preliminary report of insurance surveyors to boost the morale of the private sector. In case of any delay in the reinsurance process, the insurance companies will provide up to 50 percent advance payment.

Similarly, the government has made a provision of minimum 80 percent loan to value on bank loan for the purchase of new commercial vehicles or transport vehicles damaged during the agitation. The government has also provided 50 per cent discount on customs duty and excise duty while importing goods damaged by arson or vandalism.

Likewise, the government has made arrangements to count the amount contributed to the National Reconstruction Fund as tax deduction, the facility of deducting cost expenses on the basis of valuation of uninsured stocks and extending the period for payment of principal and interest for the agitated borrower industries and businesses.

The government has also made arrangements to provide concessional loans to the affected industries and businesses, to provide concessional loans with 2 percent subsidy by bringing ‘Payroll Security Scheme’ to secure employment and to keep the government offices, banks and revenue collecting agencies open for ease of doing business on holidays other than Dashain.

All these provisions are expected to provide direct relief to the affected automobile industrialists and businessmen. Advance claim payment, credit facilitation, duty exemption and tax concession will go a long way in overcoming the immediate difficulties. At the same time, a scheme like Parole Security will help in social stability as it will secure the employment of employees.

NADA has further demanded that the loan to value ratio should be extended to all vehicles, not just for the affected businesses. This will revive market demand and increase the flow of investment through the banking system.