“Site identified for SEZ in Jhapa is located at Kerkha, which lies some 10 kilometers east of Damak adjoining the East-West Highway,” stated a senior official at the SEZ Project – a special unit of the Ministry of Industry.
Likewise, the site recommended for SEZ in Kailali is located is a village that lies some 5 kilometers south of Attariya-Dhangadhi Highway.
The pre-feasibility study of the SEZs in Jhapa and Kailali were done as a part of the government’s strategy to facilitate planned industrial development and promote balanced economic growth in different parts of the country. A program to this effect was mooted a couple of years ago.
“The report of the pre-feasibility study has already been submitted to the National Planning Commission (NPC). If the commission okays our proposal, the program of developing two more SEZs will soon feature in the government’s next policy document,” stated the source.
The report has recommended the government acquire up to 200 bigahs of land in Kerkha for the purpose. A large part of the identified site is a forest area, and the government will also have to buy a chunk of the land from individual owners.
Similar recommendations have been made for SEZ development in Kailali. “Kerkha is adjoined to the East-West Highway and is located close to the customs office in Kakarbhitta. SEZ on this site will better serve the industries that aim to export to Bangladesh, eastern and southern states of India, and other overseas markets,” states the report.
Likewise, SEZ in Kailali has been pushed for promoting industries that export goods to North-Indian states. Establishment of SEZ is also believed to lure more private-sector and foreign investments in the region, thereby creating more economic opportunities for relatively poor people in the country’s farwest.
The government first conducted a study to set up a special industrial zone in 1983. A program to develop such a zone was first announced 17 years ago. Still the government has been slow at implementing the program.
So far, the government has readied only an SEZ in Bhairahawa. A proposed SEZ in Birgunj is at the initial stage of land development, while another in Panchkhal is at the stage of land acquisition.
Officials at the SEZ project attribute the slow implementation of the program for the delay in enacting SEZ Act, which provides special incentives, facilities and labor flexibility to investors. “Now that SEZ Ordinance has been promulgated, we are planning to bring into operation the SEZ in Bhairahawa from March 2009” said the official.
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