BUDGET BUZZ: Continue pro-industry policy

Confederation of Nepalese Industries (CNI) wants the government to continue with pro-industry policies and programmes. The pressing issues that are hitting the business and industry sectors are energy crisis, labour disputes and frequent bandhs and strikes that the new budget should address immediately.

CNI is concerned over the rising price that is an against the world trend. CNI wants the budget to focus on immediate ratification of Foreign Direct Investment (FDI) Policy, establishment of Investment Board and product-specific Special Economic Zones (SEZs) and formation of industrial security force to make an investment friendly environment for double digit growth. The SEZs that are proposed for Jhapa, Dhanusha, Birgunj, Panchkhal, Jumla and Dhangadhi should be supported by industries like cement factories in Udayapur, Hetauda, Dang and Surkhet.

Likewise, CNI wants an end to the syndicate in the transport sector and also stopping the practice of calling road blockades. Industrial revolution is necessary to end unemployment. The budget should provide tax rebate for large scale industries that employ above 500 staffers as this would encourage industries to generate more employment. CNI also wants the budget to bring provisions that could provide special facilities to those industries that hire over 25 per cent women workers.

The new budget must reduce custom duty on raw materials. CNI requests the government to make a policy of returning customs duty of export industries and establishment of a high-level revenue board with active participation of the private sector.

With the focus on tourism promotion, CNI proposes an international airport in Neejgarh of Bara district and regional airports in Pokhara and Bhairahawa. The government has declared the year 2011 as Nepal Tourism Year targeting to welcome one million tourists. To attract more tourists, CNI also proposes that the government make heritage hotels in old palaces.

Nepal needs a long-term policy for modernisation and commercialisation of the agriculture sector. Infrastructure development is another key aspect of our economy that the budget needs to give priority to. CNI proposes that an Infrastructure Development Bank with Public-Private-Partnership (PPP) model be developed along with construction of East-West railway in the Tarai as well as roads in the hills.

CNI also wants to see Nepal as a transit point between two fast growing economies -- India and China -- through the construction of North-South highways in Mahakali, Karnali, Kali Gandaki and Koshi river corridors. The budget must spell out policy measures to end energy crisis including simplification of licensing process and also no license for up to three megawatt (MW) hydropower projects. To encourage hydropower generation, the budget should bring a policy that needs no environment impact assessment for up to 50 MW hydropower generation.CNI also urges the government to mobilise all its diplomatic missions abroad for economic diplomacy to encourage Nepali exports.

Binod Kumar

President,

Confederation of Nepalese Industries (CNI)