The Council of Ministers this week approved terms of reference (ToR) prepared by a technical committee at the Ministry of Industry (MoI). [break]This decision paves way for the technical committee to directly ask other concerned agencies to provide necessary support to industries identified as ´sick´.
"Finally, we have been authorized to make recommendations for revival of sick industries," Surya Kant Jha, under secretary at the ministry, told Republica.
The technical committee coordinated by Jha was formed a couple of months ago after the ministry was asked to carry out the task of studying actual situation of the industries, identify their problems and make recommendations on support they need.
"Earlier, we were in confusion about jurisdiction of our area of work," Jha said. To quell the confusion, the ministry then prepared a ToR and submitted it to the cabinet.
"As the ToR was approved, the committee is now able to directly ask other concerned agencies such as Nepal Rastra Bank, commercial banks and other government offices to make necessary arrangements to support the firms that need help," Jha explained.
As of now, the committee has recommended that three firms, namely, Shree Nepal Boarders, Birat Leather and Birat Shoes Ltd be declared as sick industries.
"After the government declares them as ´sick industries´ and publishes their names in a gazette, we can ask related bodies to restructure their bank loans, waive off interest or open exit door for them, among others," Jha said.
The government, last year, through immediate action plan-2011, had formed a high level task force under the leadership of Dipendra Bahadur Kshetry, vice chairperson of the National Planning Commission, to prepare a report on measures that need to be taken to revive and rehabilitate the country´s industrial sector. The report has proposed a slew of facilities to the sick industries.
However, all the recommendations made by the report may not be implemented as some of them are not in line with the existing Industrial Enterprises Act 1992.
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