Kathmandu. Action will be taken against industries that do not meet special financial criteria.

The Special Economic Zone Authority (SEZ) has decided to take action against Panchakanya SS Export for failing to export 70 per cent of its total production as per the working procedure.

Officiating Executive Director of the Special Economic Zone Authority (SEZ), Dr Diwakar Luitel, said that Panchakanya SS Export was released after it failed to export the products as per the conditions.

The Authority has made it mandatory for the industries located in the Special Economic Zone to export 70 percent of the total production. It is said that the metal tanks produced by Panchakanya SS Export could not be exported as prescribed.

Tax concessions have been provided to the entrepreneurs from the construction of necessary infrastructure in the Special Economic Zone. In Bhairahawa, this area is spread over about 52 bighas. There are 69 industrial lands ranging from 1,400 to 3,700 square meters.

The special economic zone established in Bhairahawa two decades ago is the first export-oriented industrial zone in the country. Since the industries established here cannot be sold, the industries and companies built by them have to be demolished.

The Special Economic Zone Authority under the Ministry of Industry has been conducting pre-feasibility and feasibility studies for the establishment of Special Economic Zones in different regions of the country and has been building necessary infrastructures in Special Economic Zones across the country.

It has provided services to businessmen including tax incentives, customs duty exemption and streamlined regulatory process. Efforts are being made to attract domestic and foreign investors to attract foreign investment, tax exemption, low tariffs, establishment of manufacturing and service industries.

These economic zones are currently operational in Bhairahawa and Simara. More studies and investors are being sought for infrastructure development works in Panchkhal.