Money
Sick industries’ list to be released next week
The names of the companies receiving the distinction would be published in the Nepal Gazette, whichwill allow them to obtain government benefits
Ministry officials said that the names of the companies receiving the distinction would be published in the Nepal Gazette by next week which will allow them to obtain government benefits to help them become commercially viable.
A meeting of the Parliamentary Economic and Infrastructure Committee had identified Nepal Boards Limited, Bara; Birat Leather Industries, Hetauda; Birat Shoe Industries, Kathmandu; Basulinga Sugar and General Industries, Kailali; Sumi Pharmaceuticals, Nawalpa-rasi, Fluer Himalaya, Birgunj; Shree Antu Tea Industries, Ilam; Gaida Wildlife Camp, Chitwan; The Fulbari Resort, Pokhara and Dolphin Manor Hotel, Bardia as being sick industries.
“We are currently preparing to publish their names in the Nepal Gazette,” said the ministry spokesperson Yam Kumari Khatiwada. “It will take at least a week.”
As per the provision, companies that have been in the red for five years and operating at below capacity can apply for sick industry designation to be eligible for government help.
The Cabinet had decided to approve the list of sick industries based on the recommendation of a technical committee and a high-level government taskforce that had been entrusted to prepare a report on these ailing companies.
Khatiwada, who is also the coordinator of the technical committee, said the list was drawn up after a thorough examination. “We did a lot of study and made field visits before finally putting them in the sick list,” she said.
The ministry will also amend certain acts and policies to enable the sick industries to get government allocated benefits.
In April 2014, Nepal Rastra Bank (NRB) had announced facilities for sick industries by categorizing them into two groups — industries that can be brought back into operation and those beyond revival. The central bank had proposed giving loans to the companies that could be revived.
As per the government’s rescue package, bank and financial institutions will waive penal interest and keep the normal interest separate without recapitalising it with the principal and recover such interest after a certain period. If a bank wants to obtain NRB refinancing to provide loans to sick industries at cheaper rates, it will be provided at NRB-fixed interest rates. In case of industries that cannot be brought back into operation, they could get up to one year to sell off their collateral to repay bank loans.
In order to enjoy these facilities, sick companies have to submit a plan to their bank assuring it that the collateral can be sold for a higher price at a certain time in the future.
“As there are different types of sick industries and they are related with different ministries and departments, they can now ask for the facilities directly from the concerned departments and ministries,” said Khatiwada.
Apart from financial issues, sick industries that are not financially troubled will also be addressed by the concerned department.
Meanwhile, the technical committee at the ministry has been mulling examining another 38 companies that have applied for sick industry status. “We will soon start proceeding with the task with the concerned industries.”