Private sector welcomes government’s move to revive defunct firmsTwo major private sector umbrella bodies have welcomed the initiative taken by the government to revive defunct privately-owned enterprises.
Two major private sector umbrella bodies have welcomed the initiative taken by the government to revive defunct privately-owned enterprises.
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), and the Federation of Nepal Cottage and Small Industries (FNCSI) have said the move would help in bolstering investor confidence.
“At a time when lack of security, frequent power cuts, labour issues and policy hurdles have forced enterprises to pull down shutters, the effort made by the government to revive defunct enterprises is a welcome step,” says a statement issued by the FNCCI.
The FNCSI said of around 300,000 micro, cottage and small enterprises present in the country, around 100,000 are not in operation due to various reasons. “The initiative taken by the government will help revive the closed enterprises,” says a statement issued by the FNCSI.
The Ministry of Industry, on Monday, floated an ambitious plan to revive defunct privately-owned enterprises in a bid to bolster the confidence of entrepreneurs who have been creating jobs.
Under this plan, units of the real sector that have terminated operations will be asked to submit proposals for their revitalisation. The proposition should state the reason behind the closure and the measures the government could take to revive them.
According to Industry Minister Nabindra Raj Joshi, all real sector businesses ranging from small- and medium-size to large enterprises will be able to benefit from this scheme.
“While submitting the proposal, one has to clearly declare the reasons behind the closure,” said Joshi. Similarly, applicants are required to mention the conditions or scenarios under which the closed businesses and factories can be restarted, he added.
After receiving proposals from the owners of the defunct enterprises, the ministry will form a committee to assess them thoroughly. The panel will then recommend measures the government can take to revive them. Based on the recommendations, the government may change its policies or provide incentives or procedural or infrastructural support, Joshi said. “If a little effort from the government can revive closed factories, that will be a great achievement in terms of giving a positive message to the private sector. It’ll indicate that the government is trying to create a good business environment in the country,” said Joshi.
The latest move, according to the minister, will also provide the government a list of businesses that are no longer in operation along with the reasons behind their closure, which will help different ministries to frame appropriate policies in the future, he added.