The government has not been able to establish a single special economic zone (SEZ) even 10 years after the plan was launched. The construction of an SEZ in Bhairahawa has largely been completed, but lack of relevant laws has raised doubts over whether it will ever go into operation. The government has identified 14 other potential locations to set up SEZs, but no concrete work has been done at these sites.
According to the SEZ Development Committee, initial construction work has begun at Simara in Bara district. It said feasibility studies of 12 places had been completed, and that the government was facing land acquisition problems in many places including in Topgachhi, Jhapa.
As there is no SEZ Act, the government is preparing to bring the SEZ in Bhairahawa into operation through an operation manual which the SEZ Development Committee has been working to get endorsed by its board. The manual will then be sent to the Industry Ministry.
Industry Secretary Krishna Gyawali said that the government would bring the Bhairahawa SEZ into operation within a month after the Cabinet approves the manual. However, there are doubts if the manual alone will be adequate to attract investors to set up factories at the SEZ.
Executive Director Shankar Man Singh of the SEZ Development Committee said that the SEZ Act was a must to ensure long-term predictable operation of SEZs, but they wanted to operationalize the SEZ temporarily through the manual until Parliament passes the act. The SEZ Act did not figure in the priority list of the previous parliament, and even though the first draft of the SEZ Bill was made in 2008, it has not become law until now. The previous government led by Khil Raj Regmi tried to introduce the Industrial Enterprises Act with a provision regarding SEZ, but that attempt too failed.
Meanwhile, work to introduce a separate SEZ Act has started. A committee headed by Industry Ministry Joint Secretary Jit Bahadur Thapa has been putting the finishing touches to the draft act. The proposed act mentions developing infrastructure and providing tax incentives to factories set up inside SEZs. They will be required to export 75 percent of their production.
While the bill has to be approved by the Cabinet and then by Parliament, the manual can be implemented after the Cabinet gives the go-ahead. The manual will be a guide for establishing factories inside the SEZ.
“Right after the manual is okayed, we will invite expressions of interest from interested enterprises to set up factories inside the SEZ in Bhairahawa,” said Singh. “We have been receiving inquiries from different companies about establishing factories in the SEZ in Bhairahawa.
An administrative block and service centre have been completed, and a waste water treatment plant is also almost complete in Bhairahawa, according to the SEZ committee. Likewise, land plotting, electricity lines and roads have been completed, and the SEZ is ready to lease out plots to set up factories. The Bhairahawa SEZ contains 52 plots which can accommodate around 200 plants. Industries related to agriculture, food processing, carpet, garment, handicraft and electronics are expected to be set up in the SEZ.
Meanwhile, the SEZ Development Committee has acquired possession of 50 hectares land in Panchkhal, Kavrepalanchok for the SEZ project from the Forest Ministry. It plans to build another SEZ on it. “We have plans to fence the proposed SEZ area and conduct a detailed engineering report next year,” said Singh.
Source
According to the SEZ Development Committee, initial construction work has begun at Simara in Bara district. It said feasibility studies of 12 places had been completed, and that the government was facing land acquisition problems in many places including in Topgachhi, Jhapa.
As there is no SEZ Act, the government is preparing to bring the SEZ in Bhairahawa into operation through an operation manual which the SEZ Development Committee has been working to get endorsed by its board. The manual will then be sent to the Industry Ministry.
Industry Secretary Krishna Gyawali said that the government would bring the Bhairahawa SEZ into operation within a month after the Cabinet approves the manual. However, there are doubts if the manual alone will be adequate to attract investors to set up factories at the SEZ.
Executive Director Shankar Man Singh of the SEZ Development Committee said that the SEZ Act was a must to ensure long-term predictable operation of SEZs, but they wanted to operationalize the SEZ temporarily through the manual until Parliament passes the act. The SEZ Act did not figure in the priority list of the previous parliament, and even though the first draft of the SEZ Bill was made in 2008, it has not become law until now. The previous government led by Khil Raj Regmi tried to introduce the Industrial Enterprises Act with a provision regarding SEZ, but that attempt too failed.
Meanwhile, work to introduce a separate SEZ Act has started. A committee headed by Industry Ministry Joint Secretary Jit Bahadur Thapa has been putting the finishing touches to the draft act. The proposed act mentions developing infrastructure and providing tax incentives to factories set up inside SEZs. They will be required to export 75 percent of their production.
While the bill has to be approved by the Cabinet and then by Parliament, the manual can be implemented after the Cabinet gives the go-ahead. The manual will be a guide for establishing factories inside the SEZ.
“Right after the manual is okayed, we will invite expressions of interest from interested enterprises to set up factories inside the SEZ in Bhairahawa,” said Singh. “We have been receiving inquiries from different companies about establishing factories in the SEZ in Bhairahawa.
An administrative block and service centre have been completed, and a waste water treatment plant is also almost complete in Bhairahawa, according to the SEZ committee. Likewise, land plotting, electricity lines and roads have been completed, and the SEZ is ready to lease out plots to set up factories. The Bhairahawa SEZ contains 52 plots which can accommodate around 200 plants. Industries related to agriculture, food processing, carpet, garment, handicraft and electronics are expected to be set up in the SEZ.
Meanwhile, the SEZ Development Committee has acquired possession of 50 hectares land in Panchkhal, Kavrepalanchok for the SEZ project from the Forest Ministry. It plans to build another SEZ on it. “We have plans to fence the proposed SEZ area and conduct a detailed engineering report next year,” said Singh.
Source
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