Industry did not come to Bhairahawa SEZ

Even after more than two decades of its establishment, the attraction of businessmen has not increased in Bhairahawa SEZ. In Bhairahawa SEZ, which is considered to be the first export-oriented project in the country, neither the establishment of industry has been completed nor the businessmen have been able to get the services as per SEZ rules. The distance between businessmen and SEZ authorities is increasing. The administrative buildings and other physical infrastructures built in SEZ have become dilapidated before being fully operational. Effective steps have not been taken from the government level to operate SEZ in a systematic and full capacity.

President of Siddhartha Industry and Commerce Association and local businessman Thakur Kumar Shrestha says that the attraction of businessmen has not increased due to the confusion seen in SEZ operation and the lack of service facilities and necessary infrastructure for businessmen. "In the Bhairawa Special Economic Zone, the attraction of businessmen and investors has started to increase," said Shrestha, "the inability to provide services to businessmen as stated in SEZ and the haphazard management of SEZ has discouraged businessmen and investors."

Two years ago, seven industries were operating in Bhairahawa SEZ namely Jayabuddha Metal Craft, Panchkanya Steel Tank, Shakti Minerals, V Star Global Pvt Ltd, S Polymers, Tirupati Metal Craft and Brilliant Lighting. Jaibuddha Metal Craft is closed at this time. Spread over an area of ​​52 bighas, Bhairahawa SEZ has 68 plots of land for setting up industries ranging from 1,400 to 3700 square meters. So far, 23 businessmen have signed contracts for 60 plots for industrial operations in this SEZ, which has been under construction since 2058.

According to the Special Economic Zone Authority, 5 industries are in operation, one is closed, one is preparing to establish an industry, 4 are under construction, 3 have obtained plot permission and 8 industries have not proceeded due to contract. Tulsi Marasini, the executive director of the authority, said that the businessmen who have not proceeded with the establishment process even within the stipulated time after signing the agreement for the operation of the industry will be removed and the process of granting permission to other interested businessmen will be carried forward. "We are in discussions with stakeholders including businessmen for the operation of Bhairawa SEZ at full capacity," said Marasini, "however, if it is not possible to operate at full capacity for a long time, the one-door system cannot be implemented as per the SEZ Act and there are other legal obstacles." According to him, the land rent is expensive The study committee has already submitted a report that it would be appropriate to reduce it from Rs. But the decision has not been made. In order to increase the attractiveness of businessmen, SEZ Board of Directors has decided to maintain 30% of the provision that 60% of the total production should be exported abroad after the second year of production and sent it to the Ministry for revision. This provision was also mentioned in the budget of the current financial year. But the law has not been amended yet.

Businessmen say that many people have stopped seeing a good future in Bhairahawa SEZ due to the lack of coordination between government ministries for SEZ operation in a simple and easy manner, centralized administrative services, lack of service facilities and physical infrastructure as mentioned in the SEZ Act, the tendency of government employees and SEZ officials to neglect their work. Instead of facilitating and encouraging the businessmen, the SEZ authority is trying to discourage them and the customs and other government administrative bodies are not facilitating them even in adverse circumstances.

Deepak Kumar Jha, owner of Shakti Minerals Pvt. He started the first industry in Bhairahawa SEZ. "According to the law, SEZ premises are not recognized as customs," Jha said. I didn't even think that such a situation would happen when I was operating an industry in SEZ.'

According to him, after paying the customs duty, no other duty will be charged if the loaded cargo vehicle from India returns from the customs within 72 hours. Nor are Indian vehicles charged at the customs premises to load goods. However, a customs duty of Rs 1,700 per vehicle per day is charged from freight vehicles bound for India by loading goods manufactured in SEZ, which is recognized as customs and export-oriented products are given priority. He is accused of charging the same ratio within 72 hours. "I have been talking about this for five/six years and I have also been submitting petitions," he said, "who will I tell?" Who to complain to? There is no coordination among government agencies.'

Istiyaq Ahmed Khan, the current city chief of Siddharthnagar municipality, also canceled the contract of industrial operation years ago saying that he was not getting service facilities and that instead of encouraging the investors, the SEZ was a practice that caused more suffering. Rajesh Agarwal, the managing director of Siddharth Group of Industries and a central member of Federation of Nepal Chamber of Commerce and Industry, another businessman who is ready to establish an industry, also canceled the agreement with SEZ. He said that the reason for canceling the contract was the delay in the SEZ operation and the lack of infrastructure for setting up the industry. "Even if such a big administrative building was built in Bhairawa SEZ, customs, taxes, VAT, preliminary environmental impact assessment and other administrative functions should have been done from there," he said, "but unfortunately, even today, businessmen have not been able to get those facilities from Bhairawa."