Projiochem Industries, situated in Bahuwari, Birgunj has not been able to resume its operation that was shut down soon after the protests in Madhes began."The company is not in a position to pay salaries to a total of 389 workers," Sochan Yadav, one of its managers, said.
Similar is the condition of rice mills based in Bahuawarba-based of Birgunj. The bigger machines at the mills have remained idle and the proprietor, Umesh Chaurasiya, is looking for someone to take the buildings on lease.
Large-scale industrial businesses in Birgunj and Janakpur are also scrambling to keep themselves afloat.
Complicating the matter is the tussle between workers and the management of 15 bigger companies along the Birgunj-Pathalaiya business corridor that are now on the brink of closure.
Triveni Group, which runs seven different companies under its flagship -- Triveni Dal and Oil, Bishwakarma Cement, Annapurna Vegetable, Triveni Spinning Mill, Triveni Synthetic Yarn, Triveni Textile and Triveni Sinpack -- is also straining under the crises stemming from the long protests in Madhes.
Likewise, Shree Krishna Oil Refinery and Vegetable, Polimar Industries, Megha Soap and Chemical Industries, Narayani Leather Manufacturing, Hulas Steel, Ashok Steeel, Arati Soap and Chemical have yet to resume their operations.
Vice-chair of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), Birgunj chapter, Subodh Gupta informed that all the businesses in Birgunj area have been devastated due to the nearly half a year-long closure.
"None of the businesses situated at Birgunj corridor is in the condition to make profit this fiscal year," Gupta said. According to him, the businesses can barely sustain themselves this fiscal year.
Talking to Republica, chair of the FNCCI Janakpur-chapter, Shivshankar Sah informed that the businesses in Janakpur areas incurred a combined loss of at least Rs 750 million during the Madhes protest.
"With the dues and loans piling up and expenditure exceeding profits, many businesses are on the verge of collapse," Sah said.
Businessmen call for tax holiday
Traders and owners have urged the government to come up with a relief package to save the companies in Birgunj areas that were hard-hit during the recent protests.
To recover the businesses, FNCCI Birgunj Vice-chair Gupta forwards three things before the government: 1) declaration of tax holiday; 2) regular supply of electricity to industries; and 3) roll back of the increased pay scale.
Likewise, former chair of FNCCI, Birgunj chapter, Ashok Kumar Baidya is of the view that the government should provide five-year tax exemption for the industries by declaring as crisis-hit.
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