The Special Economic Zone (SEZ) Authority Nepal has called for applications from interested parties to invest inside the Garment Processing Zone (GPZ) in Simara.
Publishing a notice, the SEZ Authority has asked firms to submit their applications within May 31 to set up their factories across 68 blocks inside the GPZ. It has also fixed rental fee of Rs 20 per square feet for investors to establish their factories inside the Simara GPZ.
According to executive director of SEZ Authority Nepal Chandika Bhatta, the authority will analyse the applications that it receives for Simara GPZ and soon award the blocks for investors to invest in.
The authority will provide necessary land to investors on lease for 30 years with the possibility of an extension, according to the notice of the SEZ Authority Nepal that is hopeful that all 68 blocks will be booked within the application submission deadline
Bhatta claimed that investors in the Simara GPZ will be assured of basic infrastructures including internal road, electricity and water supply, sewage system, weighing bridge, waste water treatment plant, petrol pump, banks and insurance service.
The government had came up with the concept of GPZ after the US extended zero tariff preference for 66 products, including apparels, into its market through the ‘Trade Facilitation and Trade Enforcement Act’ in February 2016. Construction of the GPZ is expected to bring down the production and export cost of garments, which is relatively higher compared to other nations in the South Asian region, apart from reducing the cost of production and exports. The GPZ is also expected to slash the high transport and shipment costs incurred by Nepali garment traders due to the country’s landlocked status, as the Simara GPZ is located near the country’s only rail-linked dry port in Birgunj.
Publishing a notice, the SEZ Authority has asked firms to submit their applications within May 31 to set up their factories across 68 blocks inside the GPZ. It has also fixed rental fee of Rs 20 per square feet for investors to establish their factories inside the Simara GPZ.
According to executive director of SEZ Authority Nepal Chandika Bhatta, the authority will analyse the applications that it receives for Simara GPZ and soon award the blocks for investors to invest in.
The authority will provide necessary land to investors on lease for 30 years with the possibility of an extension, according to the notice of the SEZ Authority Nepal that is hopeful that all 68 blocks will be booked within the application submission deadline
Bhatta claimed that investors in the Simara GPZ will be assured of basic infrastructures including internal road, electricity and water supply, sewage system, weighing bridge, waste water treatment plant, petrol pump, banks and insurance service.
The government had came up with the concept of GPZ after the US extended zero tariff preference for 66 products, including apparels, into its market through the ‘Trade Facilitation and Trade Enforcement Act’ in February 2016. Construction of the GPZ is expected to bring down the production and export cost of garments, which is relatively higher compared to other nations in the South Asian region, apart from reducing the cost of production and exports. The GPZ is also expected to slash the high transport and shipment costs incurred by Nepali garment traders due to the country’s landlocked status, as the Simara GPZ is located near the country’s only rail-linked dry port in Birgunj.
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