Kalendra Sejuwal

Small-scale entrepreneurs have said government policies have posed major barriers for growth of the country´s cottage and small industries, resulting in 500,000 job losses over the years. 

"The number of cottage and small-scale industries has been going down in the last couple of years due to different reasons such as lack of proper policies in place," Bishnu Prasad Lunitel, general secretary of the Federation of Nepal Cottage and Small Industries (FNCSI), told a central committee meeting of the FNCSI on Wednesday. 

According to FNCSI statistics, the number of operational cottage and small industries has decreased significantly in the last few years. "Of over 229,000 cottage and small industries registered in the country till fiscal year 2010/11, only 111,000 renewed their operating licenses the following year," Luintel said. 

In this regard, entrepreneurs have urged the government to introduce a new Industrial Enterprises Act (IEA) based on the Industrial Policy 2010. "The government also should develop a separate policy for sick industries in the country," Shyam Prasad Giri, an FNCSI official said during the meeting.

Published on: 7 March 2013 | Republica