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Fund crunch hits feasibility study of SEZs

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KATHMANDU, July 22: The feasibility study for special economic zones (SEZs) in Dhanusha, Rautahat and Siraha is unlikely to happen this year even though the government has already finalized contractors for the study.



However, the industry ministry had failed to sign an agreement with contractors before the end of fiscal year 2011/12. As a result, the budget allocated for the project has frozen.



The government has not allocated budget for the project in the partial budget for the first four months of fiscal year 2012/13, according to an official at the industry ministry.



“The feasibility study for SEZs in those three districts is unlikely to happen,” Ministry for Industry Anil Kumar Jha said, confirming that there has been no budgetary allocation for the project in the partial budget.



The official said failure to ink deal with the contractors on time has affected the entire project.



Meanwhile, construction of SEZ in Bhairawa and Simara is going on in full swing. However, construction of SEZ in Bharatpur, Jumla and Kapilbastu is unlikely to begin anytime soon. Firms appointed by the ministry are currently conducting feasibility study of SEZ in these three places.



“Only Rs 10 million have been allocated for the SEZ project in the partial budget. The amount will be spent for SEZs in Simara and Bhairahawa,” the official said.



Though the ministry has already completed feasibility study for SEZ in Panchkhal and Kavre, construction works are unlikely to begin anytime soon owing to fund crunch.



The Ministry of Industry has decided to approach the Ministry of Finance (MoF) and National Planning Commission (NPC) for the allocation of funds for the feasibility of SEZs in Dhanusha, Rautahat and Siraha, according to the official.



However, Minister Jha maintained silence over the plan to seek funds for the feasibility study.


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