Economy

Five new plants in Morang

Published by Octron on June 10, 2010

Five industries have recently been set up in Sunsari-Morang Industrial Corridor, one of the country’s major production hubs. Not long ago, industries here were forced to shut shop due to sustained insecurity and labour problems.

Once the backbone of the Nepali manufacturing sector, this corridor had been losing business to other industrial corridors. Old industries are also investing to expand their business.

Golchha Organisation, one of the country’s leading business houses, has set up a new industry with an investment of Rs. 400 million. The organisation is now starting the manufacture of iron rod. “We’ll start production after two months,” said Mukesh Rathi, director of Hulas Wires. According to him, the new industry will have an annual production capacity of 100,000 tonnes and will employ 200 workers.

Likewise, Rijal Group is setting up a gas factory in the corridor. The group that has so far been manufacturing polytanks will now introduce ‘Rijalko Bhansa Gas’ with an investment of Rs. 150 million. According to Nabin Rijal, managing director of the group, production will start in four months.

Bagmati Oil Industries that has been producing refined oil is also setting up a new plant. The plant, requiring an investment of Rs. 80 million, will employ 40 people, according to promoter Dewaki Nandan Agrawal.

Rathi Group is preparing to establish a plywood factory. “The factory will have an investment of Rs. 120 million,” said Diwakar Rathi. It will start production in five months, he added. What’s more, Ganesh Agrawal and Sudheer Todi are investing Rs. 70 million to set up rice mills here.

Businessmen have welcomed the addition of industries in the corridor. “If security situation improves, more industries will be established.” said Shiv Shankar Agrawal. Dinesh Golchha, President of the Morang Chamber of Industries, said private sector was keen to invest if political uncertainties ended. “Industrial investment will increase if the government devises clear policies,” said Golchha.

Source: Kantipur

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