Ministry of Industry is planning to bring Special Economic Zone (SEZ) Act through ordinance, according to the minister for Industry Anil Kumar Jha.
"Development of SEZ for the industrial development is a key," he said, addressing a workshop on ‘Proposed Industrial Enterprises Act 2068' organised by Confederation of Nepalese Industries (CNI) here today.
"We are also working to amend the Industrial Enterprise Act,” he said, adding that the government is committed to development of industrial sector.
However, the participants urged for the stable policy that could recognise opportunities as well as threats for the development of the industrial sector.
President of the confederation and CA member Binod Chaudhary also focused on development of Industrial Promotion Board as a strong forum. "The board was formed some ten years back but it has not been able to show its presence,” he added.
However, vice president of the confederation Hari Bhakta Sharma presented current challenges faced by the industrial sector. "Extreme load shedding, labour problems due to highly politicised unions, lack of innovation and cut throat competition with foreign companies are the major challenges for the domestic manufacturing and service industries,” Sharma said, adding that the productivity of workforce is, however, far lower than other South Asian countries, apart from underdeveloped infrastructure that has hit the industrial growth.
He also urged the government to focus on SEZ bill and Anti-Dumping Law to encourage the industrial sector. "CNI has already submitted its concept paper on SEZ and Industrial policy," he said, asking the government to provide tax holiday for innovative industries.
According to Sharma, contribution of the manufacturing sector to the gross domestic product (GDP) stood at 6.50 per cent in 2010-11. "There is a huge potential in the country, if the government amends and adds the suggestions made by the private sector in the proposed Industrial Enterprise Act," Sharma added.
The suggestions will help rapid growth of the industrial sector, increase income and improve competitiveness by accelerating industrial development, boost export capability and self sustainability, he added.