Manufacturing plants in Lumbini operating at half capacity

The manufacturing sector in Lumbini Province has been operating at only 48.80 per cent of their capacity, with more than half the industrial capacity of the province remaining unutilised, according to a study.

According to a mid-term review of the fiscal year 2020-21 published by the central bank, there is a downfall in capacity utilisation of the secondary sector due to fall in businesses such as noodles, synthetic cloth and paper. "Over the period, there was a fall in paper business of the province by 85.72 per cent, while those of synthetic cloth and noodles declined by 44.03 per cent and 41.10 per cent, respectively."

The report also revealed that investors are found increasingly attracted to the production of mustard oil, alcoholic beverages, rosin, GI wire and electric cables. "The growth in the business of these products soared by a minimum of 25 per cent on an average," it reads, adding that despite a massive fall in tourists’ inflow in the province, the number of hotels and lodges increased by 15.27 per cent. "Likewise, the production of main food items also declined in the province."

The yields of main food crops fell by 4.36 per cent, milk production fell by 1.18 per cent and fish production fell by 23.46 per cent, it adds. "The land area receiving irrigation services increased nominally by 0.78 per cent in the province."