Economy

180 factories shut down in five years

Published by Octron on August 1, 2009

No new industry has been set up in Sunsari-Morang corridor but industries shuttering down are growing continuously for last five years. As many as 180 factories in the corridor have already been closed down over period, according to Chambers of Industries of Morang (CIM). With the closure these factories, thousands of people have been deprived of employment.

The factories that were closed down are related to plastic, readymade garment, zink oxide and oil and ghee. The industrialists have said that all of them were closed down due to increased insecurity, labour problems and bands. Only 15 plastic factories are under operation now although there are 60 such factories in the corridor. Some of factories however have been transferred into Narauangadh and Kathmandu, according to an entrepreneur.

Entrepreneurs here say that the some industrialists who closed down their industries have stayed in Kathmandu and some have flown away to India.

“How can we run the factories when bands, insecurity and labour strikes always haunt us?” asked Som Nath Adhikari, executive secretary of CIM. The industrialists related to plastic factories say that their condition deteriorated with the increase of excise duty on plastic products in the current fiscal year. With the closure of Nepali factories, Indian plastics are expanding their market in Nepal. Earlier, the Nepali factories used to export plastics to India.

Likewise, most of the readymade garment industries have also already closed down in the corridor. Only two factories are under operation currently out of 12, said Prasanta Pokharel, president of Garment Association of Nepal. J.B Apparel Factory, one of the big industries of the country had been closed down three months ago. The remaining factories are also under operation with capacity utlisation of just 15-20 percent, said Pokharel.

The entrepreneurs are of the view that the existing industries will also be closed if the situation is not improved soon.

CIM secretary Bhim Ghimire was of the view that the Biratanagar which is recognized as industrial city, was heading towards desertification of industries. An industrialist Kamal Kishor Rathi said that most of the factories were closed and some moved away from the corridor due to excessive bands and power outage for longer period.

Source: Kantipur

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