Industrialists rue of problems in SEZ Act

By Our Correspondent,Bhairahawa, July 5: Industrialists have said that there is a problem due to the lack of effective implementation of the Special Economic Zone (SEZ) Act. 

There are dozens of problems that need to be solved by the government in the Special Economic Zone (SEZ) located in Bhairahawa, but the industrialists complain that they have not been addressed. 

In a discussion with industrialists and other stakeholders organised by the Special Economic Zone Authority in Bhairahawa on Wednesday, industrialists said that they are facing problems due to government indifference to establish and operate industries in the SEZ.

Almost two and a half decades ago, the government introduced the concept of Special Economic Zone (SEZ) to reduce trade deficit by increasing exports. 

Accordingly, for the first time in the country, two decades ago, the SEZ construction started after acquiring land in Bhairahawa. 

Although the structure was built, industrialists did not come to Bhairahawa SEZ for a long time to operate industries. Instead, with the change of the minister, the process of opening and inspecting the SEZ continued. Recently, some industries have been built and started operating. 

The operated industry has also exported goods. However, SEZ has not yet come into full operation.

Businessmen said that the commitment made by the government to provide services for the industries operating in SEZ has not been implemented even for two decades and the lack of other infrastructure is causing difficulties in the operation of the industry inside the SEZ.

Industrialist Ajayman Shrestha, who is preparing to operate an industry for the production of furnace oil in Bhairahawa SEZ, said that even though the SEZ Act called for a one-door system to complete all other procedures for the businessmen operating the industry, the services are not available. 

"I had to go to Kathmandu eight times during the seven months I was going to set up the industry," Shrestha complained. "I have to go to the ward office, customs, bank, electricity and other agencies to get the facilities mentioned on the website as being available in SEZ."

They complained that the fares in SEZ are high. 

Currently, industrialists in SEZ are paying rent of Rs. 20 per square meter. The demand of the industrialist is that it should be reduced to Rs. 10. 

Thakur Kumar Shrestha, president of Siddhartha Chamber of Commerce and Industry, "The current rent rate should be reduced, we have been demanding for a long time have not been addressed yet."

Devendra Sahu, General Manager of Panchkanya Group, complained that he suffered a lot while operating the industry in SEZ. 

He said that he started regretting setting up an industry in SEZ as he did not get the service facilities as stated.

There are 69 plots of 1,500 to 3,200 square meters for industrial operations in Bhairahawa SEZ with an area of 52 bighas of land. 

The Bhairahawa SEZ, with an investment of around Rs. 1 billion, has become dilapidated without being fully operational.

Acting Executive Director of Special Economic Zone Authority Tulsi Ram Marasini said that the Authority will take initiatives to solve the problem by identifying the difficulties faced by businessmen in Bhairahawa SEZ.