BARA, Aug 15: Seven industries operating at the Special Economic Zone (SEZ) in Simara, Bara, have started selling and distributing their products in the market, while 11 other industries are in the final stages of construction.
The Special Economic Zone Authority said around Rs 5 billion has been invested in the industries that have already come into operation as well as those nearing completion.
Ram Singh Mal, site in-charge of the Simara SEZ, said seven industries established in the SEZ are currently selling and distributing their products. He said both Nepali and foreign nationals have invested in the industries that have come into operation.
Among the industries operating at the Simara SEZ, Pashupati Ceramics ATS, which manufactures tiles, is the largest and has received the highest investment, Mal said. More than 800 workers have so far received direct employment from the industries that have started production, he added.
Nepovit Ceramics Pvt Ltd, a joint venture between India’s AGIL Group and Nepali investors, is in the process of starting production. The company is expected to manufacture and sell tiles.
Brilliant Shoes, which manufactures footwear; Laxmi Granite, which produces granite; Balaji Manufacturing, which manufactures fans, stoves and other products; and Nepal Agro Tools, which manufactures agricultural equipment, are among the industries in the process of becoming operational, in-charge Mal said. The Special Economic Zone Authority said 67 of the 68 plots in Block A of the Simara SEZ have been leased.
Simara SEZ allows to operate 25 industries
More industries have foreign investment
Industries operating or under construction at the Simara SEZ have a higher presence of foreign investment than those backed solely by Nepali investors.
Of the 18 industries that have either started operations or are in the final stages of construction, 11 have foreign investment, according to Sagar Silwal, senior information technology officer at the Special Economic Zone Authority.
Silwal said some of the industries are fully owned by foreign investors, while others have been established through joint investment between foreign and Nepali investors.
Chemex Himalaya, backed by South Korean investors, is currently under construction. The company, which plans to manufacture cosmetic products, is also constructing its industrial building.
Rambo Granite Pvt Ltd, a joint venture between Nepali and Indian investors, is also under construction. The company, which will manufacture granite, has already completed construction of buildings and warehouses for installing machinery.
Indo Agro, which plans to produce palm oil through joint investment between Nepali and Indian investors, is also under construction within the SEZ premises. Omkar Pvt Ltd, a granite manufacturer fully backed by Indian investors, and Gang Uying Biotechnology, a Chinese-invested company producing pharmaceutical raw materials, are also under construction.
Likewise, La Dee Car Pvt Ltd, which plans to manufacture aluminium products through joint investment between Nepali and Chinese investors, is under construction. Om Mega Shree Pvt Ltd, backed by Indian investors, is developing infrastructure for the production of diapers and sanitary pads. Ma Tara Pvt Ltd, another Indian-invested company that plans to manufacture spices, is also under construction.
Similarly, Asian Vehicles, a Chinese-invested company that plans to manufacture electric vehicles, is under construction. The Hulas Cable Pvt Ltd of the Hulas Group is also being built at the SEZ with the objective of manufacturing wires.
Infrastructure for Everest Fashion Pvt Ltd is also currently under construction. The company plans to manufacture handicraft products and export them entirely.
Once these industries are completed and begin operations, more than 1,000 additional workers are expected to receive full-time employment at the SEZ. Silwal said another 10 investors have submitted proposals to establish industries at the Simara SEZ.
Silwal said the number of new industries being added to the Simara and other SEZs has increased sharply after the government led by Sushila Karki reduced land rental rates at the Special Economic Zone.
The government reduced the rent for SEZ land from the previous rate of Rs 20 per square metre to Rs 5 per square metre, attracting both Nepali and foreign investors interested in establishing industries in the SEZ, he said.
Following the increase in investor interest, 67 of the 68 plots developed for industries in Block A of the Simara SEZ have been leased, Silwal said. Approximately one bigha of land has been allocated for each plot, he said.
