The government has given a nod to the Industrial Estate Management Limited (IEML)--that oversees the management of industries inside the IEs--to constitute a committee, incorporating industrialists, to build a consensus on rent hike.[break]
“Our ministry has asked the IEML to initiate talks with industrialists to get their support in this regard,” Krishna Gayawali, secretary at the Ministry of Industry (MoI), told Republica on Saturday.
Earlier, the IEML had unilaterally decided to raise rent in IEs--that house around 6,000 firms on 5,128 ropanies of land--in the range of 400 to 850 percent.
Following this, the Federation of Industries in Nepal Industrial Estates (FINIE), an umbrella body of industries operating in industrial estates across the country, led a protest.
At the same time, the industrialists also labeled the government decision a breach of the agreement between the government and industrialists reached some 15 years ago that emphasized on "bilateral understanding" prior to taking any decision on rent hikes.
As pressure intensified, the ministry directed the IEML not to enforce the decision on rent hike.
Now, the government has once again said “it has no option but to raise rent”. “That´s why we are holding consultations with industrialists,” Gayawali said.
The government, meanwhile, is also mulling over reforming the management of industrial estates to address host of complains from industrialist.
The FINIE had earlier asked the government to handover the property of all 11 industrial estates to the private sector to ensure proper management and optimal utilization of resources.
Around Rs 13 billion has so far been invested in the IEs, where more than 11,000 people are employed.
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