PRITHVI MAN SHRESTHA

The government plans to create 50,000 jobs this fiscal year through micro, small, medium and big industries. The Ministry of Industry plans to generate 14,600 jobs under its Micro-Enterprises Development Programme (MEDP), while the rest will be generated by creating enabling environment for medium- and large-scale industries.

Secretary at the Ministry of Industry Krishna Gyawali said the government is confident that the target under the MEDP will be achieved, but it is not sure whether the target under the medium- and large-scale industries will be met as they are not under the government’s control. “We will create enabling environment by facilitating the private sector from a policy level, and by providing legal and infrastructure facilities.”

The government also plans to revive a few state-owned enterprises such as Janakpur Ciggerate Factory and Nepal Drugs Limited, by possibly handing them over to the private sector, which is also expected to create jobs. The government recently paid off the employees of Janakpur Cigarette, while a similar model is being mulled for Nepal Drugs.

With the budget talking about providing access roads to cement industries, Gyawali said the government is also considering whether similar measures could be adopted for other manufacturing industries too. Manufacturing industries are labor-intensive and they contribute heavily to employment generation.

The Industry Ministry has arranged Rs 390 million for access roads for 14 cement industries this fiscal year. The budget for this fiscal year has allocated Rs 1.23 billion for the construction of access roads and electricity transmission lines and sub-stations for cement factories that are under construction. According to the government’s plan, it has to construct 50 km roads to connect cement factories.  Likewise, 30 km transmission lines will be constructed to deliver electricity to cement industries.

The government also plans to complete the construction of the special economic zone in Bhairahawa. “We are preparing to introduce new Industrial Enterprises Act and Foreign Direct Investment policy to create an investment-friendly environment,” said Gyawali.

Under the MEDP, the government plans to expand its presence in five additional districts from the current 45 and additional 235 village development committees from the current 1,428 within a year. It plans to create additional 8500 self-employments, and 14,600 new employments, according to the ministry.

“Under the programmes, enterprises that are related to Nepal Trade Integration Strategy and other industries having export and employment generation potential will be promoted,” said Gyawali.

The government also plans to approve 50 large-scale industries, 100 medium, 500 small and 15,000 micro-enterprises this fiscal.

Published on: 4 August 2013 | The Kathmandu Post