“It was delayed but it is never too late,” stated Tana Gautam, secretary at the Ministry of Industry who elaborated that the SEZ Project -- a specialized wing of the Ministry of Industry -- will soon acquire about 1,200 ropanis of land in the Panchkhal Valley, where the specialized investor-friendly export-promoting industrial zone will be developed.
Gautam informed myrepublica.com that the government has released Rs 100 million to finance the acquisition.
The program to develop SEZ in Panchkhal had first featured in the government’s policy document about a decade ago. While the aim of the program was to cluster together the industries exporting goods to Tibet and other markets in China and provide them with industry-friendly environment and special facility and concessions, it had lost momentum amid internal conflict and political instability.
“Now that the government has provided us the much-needed resource we will soon complete the land acquisition process,” stated an official at SEZ Project. He stated that the site identified for land pooling and development is three kilometers from the Araniko Highway that connects Kathmandu with the northern border of Tatopani.
Going by the government’s plan, the Project office will pool a substantial chunk of land from the public spaces and forest areas, and buy the rest from local residents.
SEZ in Panchkhal will house some 15 different types of industries, including food-processing, construction materials, electrical, electronics, liquor and packed food materials that have been identified as viable industries for the area. “Also the industries in which Chinese investors show specific interest can be set up in the zone,” stated the source. Moreover, the government, which had envisaged taking the economy onto double-digit growth track in three years, has requested the Chinese counterpart to support the development of SEZ.
The requests to this effect were also made by the private sector in the past. The Chinese government had remained mum to the call previously, but sources said that it has recently responded positively to their request.
“The Chinese government has agreed to extend technical support for designing and developing the zone,” stated a source. However, it has asked to government to first provide it with needed land by completing all legal procedures.
“Apart from supporting the SEZ development, the Chinese government has also said it could mobilize its public-private institutions to facilitate the Chinese investors to invest and set up industries in the zone,” stated a source.
However, officials noted that the latest positive development on SEZ front have no meaning unless the government enacts the SEZ Act, a specialized law which guarantees investors of industry-friendly environment and the State’s support and incentives.
The government had finalized the bill about two years ago. But it has failed to get clearance from the Bills Committee after protest by some lawmakers over a provision in the bill which restricts industrial action in the SEZ. Officials at SEZ Project, meanwhile, expressed hope that the government will soon enact the SEZ law.
milan@myrepublica.com
Related story
Construction begins at Panchkhal SEZ, finally
