The government has allowed Nepal Army (NA) to operate a garment industry inside Kathmandu Metropolitan City to manufacture necessary products for their personnel. 

The 228th meeting of Industrial Promotion Board (IPB), chaired by Industry Minister Som Prasad Pandey, on Tuesday decided to permit the NA to operate the factory within the city. The 132th meeting of IPB had, however, decided not to allow new industries to operate within the Metropolis.

With the latest decision, the army will now be able to run their garment factory registered under the name ‘Bahu Byabasayik Udyog’. The factory is located at Kalikasthan in the Capital. 

“They have been given a waiver because NA proposed to produce garment products only for their personal use,” said Maheshwor Neupane, member secretary of IPB. “The waiver is not for the private sector.”  The company was registered formally at the Department of Industry (DoI) last year. 

Neupane, who is also the director general at the DoI, said that it was the first time that the NA has got approval to run a factory. As per the NA’s proposal, it will invest Rs77.5 million on the factory. Nepal Army Spokesperson Brigadier General Tara Bahadur Karki said that the factory had been operating for long time under the Army Material Production Directorate. “It has been producing bedding, inner vests, caps and mosquito nets for army use,” he said. “With the registration, it will enjoy the rights of other industries, which will ease the process of importing raw materials, among others.” 

As per the NA’s proposal, the industry will have a fixed capital of Rs44 million and working capital of Rs4.5 million. The industry has been registered under the non-profit category.  The industry plans to produce 30,000 jerseys, 64,000 vests, 342,000 socks, 124,000 blankets, 50,000 mosquito nets, 50,000 caps and 50,000 bags. As per the proposal, as many as 41 army personnel will be employed in the factory. Various directorate and divisions will be shareholders of the industry. The IPB also took a decision on two hydropower projects. According to Neupane, the IPB approved the proposal of increasing capital of Mandu Hydropower Project and share transfer of Betrawati Hydropower Project. Currently, Himalayan Infrastructure Fund Limited has 30 percent stake in Mandu Hydropower while the rest of the stake is held by Sichuan Hechuan Investment Company. Following an increase in the capital, Himalayan Infrastructure will have 41 percent stake, 10 percent will go to the public and the rest will be held by foreign investors, according to Neupane. The current capital will be increased by Rs1.95billion for the current Rs2.3 billion.

As far as Betrawati Hydropower is concerned, a Switzerland-based company has purchased 3.25 million shares owned by local investors.