Separate unit formed to provide relief to sick industries
KATHMANDU, June 25: The Ministry of Industries (MoI) has set up a new unit to implement recommendations made by a high-level taskforce formed to recommend measures to give a new lease of life to sick industries.
According to a ministry official, the unit was formed after the cabinet approved the report of the high-level taskforce formed by the government about six months ago. The taskforce was led by Dipendra Bahadur Kshetry, vice-chairman of National Planning Commission (NPC).
“The unit will focus on implementation of recommendations made by the taskforce,” the official said preferring anonymity.
The taskforce has recommended host of relief packages such as bank loan restructuring, extension of the bank loan payment date, waiver of interest among and tax, among others.
The government, however, has yet to name the industry eligible for the relief package.
“The unit will also come up with a certain criteria to identify sick industries,” the official said.
Approving the report of the taskforce, the cabinet had delegated the authority to identify sick industries to a committee at the MoI.
Distribution of relief packages will begin after publishing the names of sick industries in Nepal Gazette, the official said.
The taskforce, in its report, has named 26 firms in the list of sick industries.
“The technical committee under the MoI will study whether or not those firms meet the criteria of sick industries,” Anil Kumar Thakur, joint secretary at the MoI said.
This means sick industries will not get any relief from the government in this fiscal year as well.
The government had first incorporated a specific program to revive sick industries in the budget for fiscal year 1994/95.