57 new industries registered in first month of fiscal year

A total of 57 industries were registered in the first month of the fiscal year with a total investment of Rs47.38 billion, according to the Department of Industry (DoI). These industries are expected to offer employment opportunities to 2,878 individuals. Out of the total capital commitment of Rs47.38 billion, SC Power Company registered in Kalikot alone has pledged Rs42.10 billion for the development of a hydropower project. The company has applied for the construction license for Tila-2 Hydropower Project (420MW), according to the Department of Electricity Development. Given the huge contribution by a single company, private sector representative said the trend is not satisfactory. “When we put the hydropower company’s registration out of the equation, the total investment commitment stands at Rs5.26 billion, which is very low,” said Pashupati Murarka, president of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI). “This is shows the private sector’s confidence is at its lower ebb and businesses are reluctant to make new investment.” Industrialists blame the acute electricity shortage for the low business confidence. “With the amount of power supply that businesses are getting these days, profitability of manufacturing industries has gone down significantly,” said Murarka. According to industrialists, apart from the power shortage, other problems like political instability, policy inconsistency and lack of a private sector-friendly law discourage them to make investments. “The low industrial registration and investment is due to deteriorating business environment,” said Murarka. “We are in a wait-and-see mode. We will definitely increase investment once the business environment gets better.” Among the new industries registered in the first month, 21 were related to tourism, followed by manufacturing and services (16 each), agro-based (two) and one each related to energy and construction. According  to DoI, 13 of the industries are large-scale while the rest are medium- and small-scale industries. Source: ekantipur