BAGMATI, April 12: The Hetauda Industrial Area is experiencing operational challenges due to declining sales of goods produced by the industries here.

Due to the crisis of raw materials, cost increment and high bank interest rates, the production of the industries here has been limited to 40 percent. At present, 115 industries are operating in the industrial area. 

According to the Industrial Area Management Office, these  industries are currently operating at 40 percent capacity. 

Industries which would run in three shifts in the past are now limited to only one shift. Workers and employees have been laid off with the decreasing capacity of the industries. 

According to Bhojraj Biradi, the chief of the Industrial Area Management Office, the economic slowdown after the Covid-19 pandemic has affected all industries here.

A process has started for canceling the contracts of two dozen industries that remained defunct due to the economic slowdown. 

Bidari said that in the name of operating industries, some people would only sign the agreement and occupy the land in the industrial area, but now action is being taken against such industries which are not operational. 

Cases have also been filed against the Office at the District Court for canceling the contracts of some industries, he said. Of the 147 industries established in the industrial sector, 115 are manufacturing industries of different nature. Nine industries have been closed and 23 are under construction.