Sunday, 9 August, 2020

Industries await execution of monetary policy to operate in full strength


By Our Correspondent
Bhairahawa, July 29: Industrialists encouraged by recently introduced monetary policy of Nepal Rastra Bank have started preparations to operate their businesses in full capacity. The industrialists have started preparations to formulate their production strategy on the basis of procedures that will be unveiled by the central bank for the implementation of the monetary policy.
Rajesh Agrawal, director of Siddhartha Group, said that the provision included in the monetary policy to provide refinance facility at 5 per cent interest by establishing a fund of Rs. 50 billion as proposed in the budget of the current fiscal year was positive.
“Industries can be operated in full capacity if such provisions are implemented immediately along with the other interventions from the government to increase the market demand,” he said.
Agrawal said that industrialists were ready to operate their plants in full capacity given that the relief packages proposed in the current year’s fiscal budget and monetary policy are implemented.
Monetary policy of the central bank has given relief to the industries which are gradually in the process of recovery after the lifting of lockdown, said Narayan Prasad Bhandari, president of Trade and Industry Organisation Rupandehi.
According to Industry Association Rupandehi, the industries of essential sector operating at around 45 per cent of their full capacity during the lockdown have now been operating at around 80 per cent of their capacity.
The industries will exploit further capacity once the monetary policy comes into force, said Baburam Bohora, president of the association.
However, Trade and Industry Organisation Rupandehi has informed that industries along the Bhairahawa-Lumbini corridor are now operating at around 70 per cent of their production capacity.
A total of 11 cement industries are operating in the corridor which produce around 50 per cent of total national production of cement. Domestic industries produce 3.5 million to 4 million tonnes of cement annually.
Meanwhile, around 90 per cent industries have come into operation in Banke district after the end of lockdown.
President of Nepalgunj Chamber of Commerce and Industry Abdul Bahim Mansuri said that around 90 per cent industries of the district had come into operation after the lockdown and they are operating at around 35 per cent of their capacity as per the demand in the market.
Local industrialists said that they were producing goods and services below their capacity considering the low demand in the market.
Pashupati Dayal Mishra of Om Ply and Furniture Industry said that he was currently bearing losses from the operation of his industry at around 35 per cent of its capacity.
Entrepreneurs of other industries also shared that they were operating their industries in between 15 to 35 per cent of their production capacity due to low demand in the market and other difficulties caused by the COVID-19 pandemic. 

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