MoI pushes for duty concessions, diesel subsidy for industries

KATHMANDU, Mar 9: Ministry of Industry (MoI) has pushed for duty and tax concessions on the import of power generators and subsidy on diesel to the industrial consumers in a bid to address power problems in the industrial sector.



It has also sought proposals from concerned ministries to intensify industrial security and do away with labor stir -- other two crucial issues that have been jeopardizing industrial climate. [break]



“We have already finalized packages for addressing the power shortage and have forwarded it to the cabinet for approval,” a highly placed official at Ministry of Industry (MoI) told myrepublica.com. “As for security and labor related issues, we are still discussing on various possible options.”



Entrepreneurs have long tagged power crisis, insecurity and labor unrest as three major problems hindering them and urged the government to address them promptly. They had reiterated this demand when they met with the Prime Minister last week.



Based on their demand and the instruction of the PM, MoI had recently finalized the package to assure power supply and help industries cope with the rise cost of production emanating through use of thermal power.



Going by the package, which is expected to be approved by the cabinet soon, MoI has proposed the cabinet to provide customs duty and tax concessions on the import of power generators for the industries. It has also principally agreed to supply diesel at subsidized rate to the industries and pushed the cabinet to endorse it for industries producing power on their own.



“Because both these programs were agreed upon by the cabinet last year, we expect cabinet to give its nod soon,” said the source. Besides, given the power failure situation, there is no option for the government but to extend similar facility this year as well, the Ministry has argued.



To mainly help the industries to do away with the rise in cost arising from use of thermal power, the government had last year announced of supplying diesel to industries at the price cheaper than the market rate by Rs 10. However, the program was never implemented. Like last year, the MoI has also pushed to the government to waive off minimum charges levied on electricity bill for the industries.



It has also urged for instant repairing and operation of thermal plant in Morang-Sunsari Industrial corridor -- something that the entrepreneurs in the eastern region have been demanding since long.

Related story

Homestay not attracted by subsidy