Rupandehi. Industrialists in Bhairahawa have been excited after the government reduced the fare rate in the Special Economic Zone (SEZ) operating in Bhairahawa.

Despite the recent problems, industrialists are attracted to SEZs. Industrialists have been attracted to SEZ due to the Special Economic Zone Authority (SEZ) resolving the problems seen in SEZ and some amendments in the law.

Not a single plot is vacant in the Special Economic Zone of Bhairahawa. Engineer Sabuta Dumre, chief of the Bhairahawa Special Economic Zone office, said that all 68 plots in 52 bigha of land have been leased out. Out of 68 plots, industries have been opened in 52 plots while 16 plots have been leased out and they are under construction.

Currently, Shakti Minerals, Vistara Global Pvt Ltd, Tirupati Metal Pvt Ltd, Brilliant Lighting Industry, Himalaya Granite Pvt Ltd, Eco Nepal Energy Pvt Ltd, Arshi Industries, Ace Polymers, Himalaya Eco Industries Pvt Ltd, CP Metal Pvt Ltd and Swastik Industry Pvt Ltd are operating in the SEZ.

Similarly, Super Electric Pvt Ltd, Imitation Metal Pvt Ltd, Data World Pvt Ltd, DIL Global Pvt Ltd, Almighty Overseas Pvt Ltd, OBT Nepal Pvt Ltd and Garment Gear Pvt Ltd are under construction. However, Panchakanya SS Export Pvt Ltd and Jaya Buddha Metal Craft Pvt Ltd of Panchakanya Group have also shut down.

The government has been addressing these issues as the industrialists in SEZ have been complaining about the problems of high rent, difficulties in export limit, and loans to industries.

The special economic zone in Bhairahawa had initially fixed the rent rate at 150 per square meter. The rate was revised to Rs 20 per square meter after the industries refused to come to the SEZ citing exorbitant fare. Even in 20 years, the industrialists were not satisfied. They have been demanding that the fare be reduced. A meeting of the Council of Ministers held on November 22 has decided to reduce the fare for Bhairahawa SEZ from Rs 20 to Rs 5 per square meter.

Likewise, the Special Economic Zone Act, 2016 had made it mandatory to export at least 60 per cent of goods and services produced by industries established in the SEZ.

According to the Ordinance made in 2081÷1÷16 to amend some Nepal Acts on Investment Facilitation, this provision has been amended to make it mandatory to export at least 15 percent of the production for four years from the date of commencement of production and 30 percent of the production in the subsequent years.

Similarly, the provision of sub-section (20) has been made that the licensee can sell the goods or services produced by such industry in the internal market of Nepal within one year from the date of operation of the industry established in the Special Economic Zone.

In the beginning, the investors of an industry operating with the license or registration could not operate the industry by transferring the industry to the Special Economic Zone and the machines, tools or equipment already used could not be used or transferred to the Special Economic Zone. Currently, it has been amended to allow the industries to be operated by transferring them to the Special Economic Zone.

Dumre said that the SEZ has been opened with the objective of providing maximum opportunities to the industrialists in Nepal and the NEA will adopt maximum flexibility to provide the necessary environment for the industrialists.

The industrialists here have expressed happiness after the cabinet meeting reduced the fare of SEZ. Netra Prasad Acharya, president of Siddhartha Chamber of Commerce and Industry, said that the demands of the industrialists have been addressed. He said that the SEZ fare has been requested not to exceed Rs 5 for a long time, but it has finally been addressed. “A policy provision was made on this issue during the budget speech, but it was also mentioned that it would be implemented after three months,” Acharya said, adding, “We had been raising this issue in the current cabinet as well. We are hopeful that the SEZ will create a conducive environment for the establishment and operation of industries. ”

Acharya said that the government still needs to do a lot of work. Stating that the one-door system, the main spirit of SEZ, has not been implemented yet, he urged the government to facilitate it. He also complained that the SEZ is facing problems of basic needs like drinking water, electricity and sanitation.

In the fiscal year 2019÷2077, SEZ sold exports worth Rs 148 million and domestic sales of Rs 56.4 million.

Similarly, in the fiscal year 2077÷078, exports worth Rs 85.47 crore and domestic worth Rs 180.3 million were exported, while in the fiscal year 2078÷079, exports worth Rs 422.4 million and Rs 306.6 million were exported.

In the fiscal year 2017÷080, SEZ exported Rs 45.41 crore and sold Rs 387.9 million in the fiscal year 2019÷080, while in the fiscal year 20080081, the SEZ exported Rs 603.6 million and sold Rs 312.4 million internally, which amounted to Rs 916.6 million, according to the NEA’s data.

In the fiscal year 20081÷082, exports of Rs. 98.96 crore and domestic sales of Rs. 897 million were the total sales of Rs. 1.88 billion. In the first six months of the current FY, the SEZ has sold Rs 175.3 million and domestic sales of Rs 284.7 million.

The government on January 29, 2060 had decided to establish the Special Economic Zone Project. The authority was established on October 1, 2016 as per the Special Economic Zone Act, 2073. The Bhairahawa SEZ is being operated as a pilot project by introducing the concept of Special Economic Zone with the objectives of export promotion, reduction in trade deficit, employment generation, foreign exchange earnings, foreign investment and technology.