Manufacturing plants in Lumbini operating at less than half of their capacity: NRB

Published On: September 21, 2021 07:10 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, September 21: The manufacturing sector in Lumbini Province has been operating at only 48.80 percent capacity, with more than half the industrial capacity of the province remaining unutilized. 

According to a mid-term review of the fiscal year 2020/21 unveiled by Nepal Rastra Bank (NRB), there is a downfall in capacity utilization of the secondary sector due to fall in businesses such as noodles, synthetic cloth and paper. Over the period, there was a fall in paper business of the province by 85.72 percent while those of synthetic cloth and noodles declined by 44.03 percent and 41.10 percent respectively. 

The NRB report shows that investors are found increasingly attracted to the production of mustard oil, alcoholic beverages, rosin, GI wire and electric cables. The growth in the business of these products soared by a minimum of 25 percent on an average.    

Despite a massive fall in tourists’ inflow in the province, the number of hotels and lodges increased by 15.27 percent during the review period. 

Similarly, the production of main food items also declined in the province. The yields of main food crops fell 4.36 percent, milk production fell 1.18 percent and fish production fell 23.46 percent. The land area receiving irrigation services increased nominally by 0.78 percent in the province. 


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