Industries and business firms based in Tarai have been closed for the last 48 days due to banda imposed by the Madhesi parties."Though industries have sufficient raw materials in stock, they have not been able to start production due to banda and strikes," FNCCI President Pashupati Murarka said at a meeting of parliamentary Commerce, Industries and Consumer Welfare Relation Committee on Tuesday.
The private sector representatives have also taken exception over statements and news reports that say the country is losing everything due to the 'undeclared' economic blockade by the Indian government. "It is only the petroleum products that we cannot produce here. All other products imported from India and other countries can be produced in the country itself," Murarka said. He also claimed that Nepali industries are capable of overcoming shortage. "For that to happen, the government must create a favorable environment so that industries can resume operation."
Business leaders say the domestic industries were shut down due to the government perception of lumping both economic blockade and Terai banda together to find solutions. "If the government distinguishes Tarai banda from economic blockade and make efforts to open closed industries, there will be no shortage of essential commodities," he added.
Talking to Republica following the meeting, Murarka, who is also the president of Murarka Organization, said that his business enterprises have not been able to dispatch their productions in the market due to banda. "Tarai banda and economic blockade are two different things. We have not been able to take our productions to the market due to the banda," he added.
Murarka Organization has various factories producing paints, steel, cement, vegetable ghee, edible oil, and iron rod and angles. "Industries in Tarai districts have been closed due to the banda, not due to the blockade. The government should immediately hold talks with dissenting parties and request them to withdraw banda," he added.
According to Murarka, around 54,000 tons of goods lay stranded in Birgunj Dry Port. He also urged the parliamentary committee to work toward resolving the crisis.
Murarka also said domestic industries have raw materials needed for at least three months in stock. "The economic blockade will not have any immediate impact on our industries. We have sufficient raw materials in stock," he said, adding, "We only need the environment to do business smoothly," he added.
Bhishma Raj Angdambe, chairman of the committee, directed the government to work seriously toward that end. "It is the responsibility of the government to create an environment conducive for industries to operate without any disturbance," he added.
Speaking at the meeting, President of Confederation of Nepalese Industries (CNI) Narendra Basnyat said the government should provide special incentives to domestic industries. He also urged the government to do the needful for resolving the ongoing crisis.
Among others, CNI has demanded additional one month to file projected VAT and excise duty details at tax offices. It has also demanded that the government provide them 30 percent discount on demurrage charge for containers stuck at the Kolkata port.
NCC CALLS FOR DIALOGUE
Nepal Chamber of Commerce (NCC) has warned that industrialists and businessmen were on verge of displacement due to the ongoing Tarai banda and 'blockade' enforced by India.
Issuing a statement on Tuesday, NCC urged the government to resolve the issue through talks. It also demanded waiver of demurrage charge for containers lying stranded at the border as well as detention charges and interest on bank loans.
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