The Ministry of Industry, Commerce and Supplies has implemented the Growth Enterprises Promotion Programme Work Procedure 2022 to move up micro, cottage and small-scale industries to medium enterprises.

The Growth Enterprises Promotion Programme (GEPP) is targeted at entrepreneurs, groups, cooperatives, firms and companies that are upgrading micro enterprises and small industries; industries using traditional knowledge, skill and capacity; and industries using capital, skill, technology and experience earned from foreign employment.

Arjun Prasad Pokharel, secretary of the Ministry of Industry, Commerce and Supplies, said the programme would help to raise micro and small-scale industries to medium scale in terms of production, employment and technology.

“The government will provide certain financial support for micro and small-scale industries that are looking to upgrade their business as required by entrepreneurs and in coordination with them,” Pokharel said. "The government will provide funds from the regular budget, and the programme will be continued annually."

According to the Industry Ministry, it has allocated a Rs9.96 million budget for the programme. The work procedure was passed by a cabinet meeting on May 2.

The Industry Ministry will operate eight different programmes under the GEPP. “The programme includes entrepreneurship development training, developing business plans and business counselling, advanced skill development training, quality enhancement, branding, labelling and packing,” the work procedure said.

Umesh Prasad Singh, president of the Federation of Nepalese Cottage and Small Scale Industries, said different programmes had been initiated earlier to support and upgrade cottage and small-scale industries, but poor implementation failed to create any impact.

“The government opened the Micro and Cottage Industry Promotion Centre, but it was unable to promote the sector,” Singh said. "The government launches programmes and then disappears. As a result, the target group does not get any benefit from the programme," he said.

“Also, the budget allocated for the programme is very small compared to the number of micro, cottage and small scale industries operating across the country who are looking for support to upgrade their business,” Singh said.

According to the federation, there are about 673,000 registered micro, cottage and small-scale industries of which around 283,000 operate around the year, and about 200,000 operate seasonally. The sector provides employment to 3.2 million people.

The work procedure was made to operate the programme in a transparent, managed and effective way for industries using the maximum amount of local resources; and contributing to creating internal employment through the development of entrepreneurship, internal supply and demand of goods and services, price series establishment, import management and export promotion.

The Industry Ministry will also operate programmes like financial reach, technology reach and transfer, marketisation, intellectual property conservation and export promotion under the programme.

As per the work procedure, the GEPP is required to make a work plan before implementing the programme. The annual target should also have at least 10 percent representation from each province. Priority should be given to demand and investment partnership made by the provinces and local units while making the selection.

The Industry Ministry will ask all local units to send details of the potential developing enterprises. They will be selected on the basis of the use of local raw materials, maximum utilisation of local resources and skills, being productive and quick result oriented, contribution to the promotion of other industries and small investment.

Other criteria include creation of employment at the local level, gender equality and enhancement of social inclusiveness, import substitution and contribution to export promotion, environmental conservation and preservation, and enterprises based on agriculture and forest.

If necessary, the selection committee can also conduct a field inspection by deploying an expert team. The names of the selected enterprises have to be published on the programme's website with details including the name and address of the industry, programme area, expected budget for the programme, cost of participation, payment process and expected period of the agreement.

If the potential developing enterprise does not have the required physical infrastructure, work force and other infrastructure, it can operate through a service provider. The service provider will be selected by the Industry Ministry to provide the service to the developing enterprise after concluding an agreement.

A directing committee will be formed to implement the programme under the coordination of the secretary of the Ministry of Industry, Commerce and Supplies, a joint secretary each from the Ministry of Finance and the National Planning Commission, a secretary from the provincial Industry Ministry, two representatives from the private sector related to industries, and a joint secretary from the Industrial Development and Investment Promotion Division of the Industry Ministry.