BARA, Aug 24: About 25 new industries have received permission to operate in Simara Special Economic Zone (SEZ) located in Jitpur Simara Sub-Metropolitan City. According to the site office of the Special Economic Zone Authority, 25 industries have received permits to operate in SEZ Block A.
With the aim of reducing trade deficit and creating employment, the then Prime Minister KP Sharma Oli laid the foundation stone of Simara SEZ with the goal of operating it within two years on 833 bighas of land of Birgunj Sugar Mill in April, 2022. About six years after the foundation stone was laid, permission was given to operate the industries in SEZ.
According to Ananda Bhatta, a technician of the Special Economic Zone Authority site, Simara Auraha, four of the 25 industries that have received permission have signed an agreement with the Special Economic Zone Authority and have started physical infrastructure construction.
Bhatta said that there is a rule that industrialists have to pay rent at the rate of Rs 10 for every square feet of land for operating industries in the Simara SEZ.
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Bhatta said that the industries that have obtained permission should start the construction of physical infrastructure required for the industry within 120 days from the date of obtaining the permission.
He also said that Rs 5.750 billion will be invested in the construction of the physical infrastructure of the industries that have received permission, and if the industries are operational, more than 2900 people will be employed.
He said that out of the five blocks of the SEZ, the 68 pieces in Block A, which were prepared last year for industrial operation, were given permission to operate the factories within two years.
Bhatta said that the four industries of marble and tiles in SEZ have reached the final preparations for the factory operation infrastructure so that they will produce in mid-November. He said that industries such as Manaram Himalayan Handicraft, Bagmati Arts, Everest Fashion, Balaji Manufacturing, North West Industries, Pashupati Ceramics, KMax Himalayan and the remaining will start the construction of factory infrastructure from September.
He said that the permitted industries include electronic vehicle assemble, herbal processing, agro-based industries, cement company boards manufacturing industries, pharmaceutical equipment manufacturing industries, aluminum, utensils, tissue paper and garment industries.
Bhatta said that once the industries in SEZ are fully operational, it is estimated that the annual production worth Rs 24. 55 billion will be exported abroad.
Out of the five blocks with an area of 833 bigha, SEZ has put up administrative buildings, contaminated water treatment plant, internal road infrastructure, sewerage, drinking water, bank, insurance, post office, customs, petrol pump, weighing machines, security, canteen, and electrification in Block A and the construction of these required infrastructure for operations has been completed. According to Bhatta, the authority has provided customs exemptions for equipment, machines, tools, spare parts and raw materials needed for the operation of the industry, and has implemented a system that does not have to be exported for 2 years, 20 percent from the third year, 40 percent from the fourth year and 60 percent from the fifth year of the total production to third countries.
Along with reducing the land rent by 50%, the authority has removed the mandatory requirement to export 60% of the production in the first year. Due to the failure of the government to create an industrial environment, new industries could not be established in the Pathlaiya-Birgunj industrial corridor for the past six years.
According to the SEZ Authority, more than Rs 6 billion has been spent on the construction of physical infrastructures necessary for industry in SEZ in the six years since the foundation stone was laid.
