“The inspection reports show that SEZs in Biratnagar, Jumla and Kapilvastu are viable if the government provides provide necessary land and encourage local products as is already envisaged by the proposed SEZ Act which is registered in the parliament for endorsement,” Yam Kumari Khatiwada, spokesperson of the Ministry of Industries (MoI) told Republica on Saturday. [break]
“However, we have to wait for the final feasibility report with detailed estimate and potentialities for setting up SEZs in those three places,” added Khatiwada.
Local products and products sourced from adjoining districts will be enough for ensuring the viability of the SEZs at Biratnagar and Kapilvastu. However, the report says, the government has to focus on how to promote local products of Jumla and transport of goods to and from the district.
According to Khatiwada, the inspection reports have identified land owned by Salt Trading Ltd and Raghupati Jute Mill as suitable land for SEZ in Birantnagar whereas Sinja area of Jumla and the area in the periphery of Bhairawa have been specified as suitable locations.
“The study has also identified apple, medicinal herbs and sheep wool as the major products for industrial production at the proposed SEZ in Jumla,” said Khatiwada.
The government has already decided to construct SEZs in Bhairawa, Simara, Dhangadhi, Panchkhal of Kavre, Jhapa, Biratnagar, Jumla and Kapilvastu to promote production and exports of local goods with special incentives to industries.
Of the total eight proposed SEZs, the government has initiated the process of constructing infrastructures such as roads, water supply and electricity lines and other necessary facilities inside proposed industrial areas in Bhairawa and Simara. However, the target of bringing the two proposed SEZs into operation has been delayed by over a year.
“We are hopeful of commencing the first SEZ in Bhairawa next year to be followed by that in Simara,” said Khatiwada. The government has also conducted feasibility for setting up SEZs in Dhangadhi, Panchkhal and Jhapa.
According to Khatiwada, the MoI has proposed a budget of Rs 500 million for completing SEZs in Bhairawa, Simara and to conduct feasibility in Biratnagar, Kapilvastu and Jumla in the upcoming budget for the year 2011/12.
In an effort to institutionalize the SEZ concept, the government has registered the SEZ Act in the parliament. The proposed act envisages that the government develop necessary infrastructure, provide tax incentives and other facilities for the industries to be opened inside the SEZ.
The act also incorporates a mandatory provision that the industries operating inside SEZs must export 75 percent of the total production.
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