Bhairahawa Special Economic Zone Attracts More Industries Amidst Policy Reforms

Butwal. The attraction of industrialists is increasing in the Special Economic Zone (SEZ) in Bhairahawa, Rupandehi. After a long time without being able to operate as expected, the SEZ is gradually becoming dynamic due to government policy reforms and industry-friendly arrangements. Currently, 6 industries are under construction within the SEZ. According to Saput Dumre, Chief Engineer of SEZ Office Bhairahawa, 21 industries have obtained establishment permits within the SEZ. Of these, 12 industries are in operation, and 6 industries are under construction. One industry is closed. Two more industries plan to start construction soon. Chief Dumre claims that the attraction of industrialists has increased due to the various policy decisions and concession programs implemented by the government to promote industries. Chief Engineer Dumre stated that the recent activities in the SEZ are considered encouraging. According to him, Sport Electric Pvt. Ltd. is constructing an industry to produce electric equipment, while Irrigation Metal Craft Pvt. Ltd. is establishing an industry to produce steel and metal products. Similarly, Data World Pvt. Ltd. is preparing to operate a data center, and DLL Global Pvt. Ltd. is establishing an industry related to silver, gold, and artificial jewelry. He also mentioned that Almighty Overseas Nepal Pvt. Ltd. is moving forward with construction with the objective of operating various manufacturing industries. According to him, two more industries have also taken permission. One of these industries plans to produce beverages, while another company is preparing to produce steel products. The rent, which was Rs 150 per square meter when the SEZ started, has now been reduced to Rs 20 per square meter. It is said that the reduction in rent has provided some relief to the industrialists. Hari Prasad Aryal, Central Member of the Federation of Nepalese Chambers of Commerce and Industry and President of the Butwal Chamber of Commerce and Industry, said that industrialists were not attracted in the past due to policy problems such as high land rent in the SEZ and the provision of mandatory export of a large portion of production. He said that the number of industries being established has increased as those provisions have been improved recently. He pointed out the need for the state to create a more industry-friendly environment to make the SEZ more effective and dynamic.
What is the export situation?
Industries operating in the Special Economic Zone (SEZ) in Bhairahawa, Rupandehi, have increased production and exports. In recent years, as the production capacity of industries within the SEZ has been increasing, the volume of exports has also been expanding. According to the SEZ administration branch, in the fiscal year 2080/81, industries within the SEZ produced goods worth Rs 916 million, of which approximately 60 percent, or Rs 603.6 million worth of goods, were exported. Thereafter, in the fiscal year 2081/82, production nearly doubled to Rs 1.8866 billion. Goods worth Rs 890.7 million were exported during that period. The SEZ administration stated that as of the end of Chaitra in the current fiscal year, production worth Rs 1.343 billion has already been achieved, and goods worth Rs 850.1 million have been exported. Currently, 12 industries are in operation within the Bhairahawa SEZ. The SEZ, spread over 52 bighas, has 68 industrial plots. Industrial establishment began in the SEZ in 2073 BS, and Shakti Minerals Pvt. Ltd. was the first to send production to the market in 2076 BS. Since then, other industries have gradually started production, said SEZ Chief Engineer Dumre. Industries like Shakti Minerals, Vistar Global Pvt. Ltd., S Polymers, Tirupati Metal Craft, Brilliant Lighting RC Industry Pvt. Ltd., Himalaya Granite, Eco Nepal Energy, and Himalaya Eco Pvt. Ltd. are in operation. These industries are mainly exporting various materials to India. A group of industrialists from Bhairahawa has initiated the process of establishing two new industries. One industry plans to produce energy drinks, while another has obtained a license to operate a utensil industry. The Jayabuddha Metal Craft industry in the SEZ is currently closed. Similarly, Panchakanya Steel Tanki Industry has stated that due to Indian policy arrangements, it has concluded that it is easier to sell within the country than to export to India from within the SEZ and has canceled its agreement with the SEZ. This industry is currently producing outside the SEZ.