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CIM submits suggestions for upcoming budget

B360 April 14, 2024, 10:53 am

CIM submits suggestions for upcoming budget

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BIRATNAGAR: A delegation from Chamber of Industries Morang (CIM) led by its President Rakesh Surana met with various government officials to discuss the challenges faced by the industrial sector and submit suggestions for the upcoming fiscal year's budget. The delegation met with Prime Minister Pushpa Kamal Dahal, Finance Minister Barshaman Pun, Minister for Industry, Commerce and Supplies Damodar Bhandari, and other officials.

The delegation highlighted the current economic problems, particularly the power supply crisis, market slowdown, and its impact on the industrial sector. They urged the government to take immediate action to address these issues and ensure a business-friendly environment.

During the meeting with Finance Minister Pun, the delegation presented suggestions for addressing the concerns of the private sector in the upcoming fiscal year 2024/25. They urged the government to formulate the budget by addressing the current economic slowdown and the sense of despair among businesses.

CIM representatives urged the Industry Minister to be more sensitive to the problems faced by the industrial sector and play a proactive role in supporting them. They suggested streamlining procedures, facilitating the immediate operation of the cargo rail service, developing industrial infrastructure, and incorporating relevant suggestions in the upcoming budget.

CIM representatives urged the Tourism Minister for the development of special plans to promote tourism and attract Indian tourists. They also requested cooperation for the upcoming International Rally "Connect Nepal Investment Mission" organised by the CIM.

During the meeting with Nepal Electricity Authority (NEA) Managing Director, the delegation from CIM expressed their concern about the power supply situation and its negative impact on businesses. They urged the NEA to be more sensitive to the plight of industries and ensure a regular power supply. They also requested the NEA to publish a schedule for power outages, if unavoidable.

Suggestions for the Fiscal Year 2024/25 Budget Submitted to the Finance Minister:

The delegation submitted the following suggestions for inclusion in the budget:

Sector	Current Situation	Recommended Improvements
Electricity	Daily power cuts of up to 15 hours.	Acknowledge the problem of regular power cuts. Provide advance information on power outages, including a schedule. Eliminate tripping and voltage fluctuations. Address political and social obstacles hindering the expansion of transmission lines and prioritise infrastructure development. Supply electricity to domestic industries at the same price as it is offered for sale to India. Focus on run-of-the-river hydropower projects instead of reservoir projects. Treat industrialists with respect.
Credit Transactions	Difficulty in obtaining loans from the market.	Introduce clear legal measures through immediate policy intervention to ensure proper regulation and management of credit transactions, protecting investments and businesses. Follow the recent example of the Indian government in enacting laws to regulate credit transactions.
Cargo Rail Operation	The cargo rail service inaugurated jointly by the Prime Ministers of Nepal and India in July 2023 has not been operational for 11 months.	The government's high-level leadership should find an immediate solution to address the lack of progress despite the significant investment in the cargo rail project. Set competitive and transparent pricing for terminal handling charges based on the principles of a free market economy. The government of Nepal should undertake diplomatic efforts with the government of India to amend the treaty and allow all types of cargo. The construction of the 10-kilometre cargo rail line extension to Katari has been stalled due to land acquisition disputes. The Ministry of Finance should immediately address this issue, considering the estimated cost of compensation is around 8-10 crore rupees, a critical infrastructure development project.
Industrial Infrastructure	The construction of a cross-border industrial zone with complete infrastructure facilities for export promotion on Salt Trading Corporation's 650-bigha land in Amdanda, Sunsari, has been delayed for a long time.	Allocate funds in the budget for the construction of a cross-border industrial zone in Amdanda starting from the next fiscal year.
Infrastructure Development Delays	Delays in the construction of the Hulaki Road, which passes through Katari, Morang, are causing inconvenience to the general public and increasing transportation costs and time for industries.	End the delays in infrastructure development projects directly linked to industrial development and ensure promptness in construction. Implement a system of penalties and sanctions for construction companies that fail to complete projects within the stipulated time frame.