Kathmandu, September 19
The SEZ Authority, Nepal is preparing to scrap the agreements that it had inked earlier with seven firms to construct industries inside the Bhairahawa Special Economic Zone (SEZ) after they did not show interest in starting the factory construction work.
Though the SEZ Authority, Nepal had published a 15-day notice twice calling the concerned firms to take factory construction approval, they have not approached the authority for the agreement.
“As they have not shown any interest towards our call for agreement, we will start the process to scrap the agreement with the concerned firms from Thursday onwards,” informed Chandika Bhatta, executive director of SEZ Authority, Nepal.
These firms include those related to the production of synthetics, mineral water, garments, shoes, herbal soaps and noodles, among others, according to Bhatta.
As soon as the agreement is scrapped with these seven firms, the SEZ Authority, Nepal will call applications from other interested firms to construct factories inside the country’s maiden SEZ in Bhairahawa.
The authority had earlier signed an agreement with 24 domestic firms to construct factories inside the Bhairahawa SEZ. As per Bhatta, all other 17 firms have taken the factory construction approval from the government and are on the verge of starting the construction works.
Among the firms that had taken the factory construction approval, Shakti Minerals has already started building its factory and is expected to start production within the next four months, as per SEZ Authority. The company is injecting an investment of Rs 400 million in Bhairahawa SEZ.
The government has developed the SEZ to address supply-side constraints in a bid to boost the country’’s exports. Industries established within SEZ will need to export 75 per cent of their production.
Prominent business houses including Golchha Organisation, Vaidya’s Organisation, Lohiya Group and Siddhartha Group, among others, are setting up their factories inside the Bhairahawa SEZ.
The post SEZ Authority to scrap pact with seven companies appeared first on The Himalayan Times.
Written by Sandeep
This news first appeared on https://thehimalayantimes.com/business/sez-authority-to-scrap-pact-with-seven-companies/ under the title “SEZ Authority to scrap pact with seven companies”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.
