207 enterprises face closure in Rupandehi in current FY

BHAIRAHAWA: While there has been ongoing advocacy for creating a favourable environment for industrial development to contribute to the national economy, Rupandehi district recorded a disappointing status last year.

In the current fiscal year 2023/24, a total of 207 enterprises were shut down in the district.

Netra Prasad Bhusal, Chief of the Cottage and Small Industries Office in Rupandehi, stated that 207 enterprises were closed until May 13 in the current fiscal year. This number was 217 at the same time the previous fiscal year, he added.

Bhusal attributed the closure of industries in the district to a struggling economy. Industrial outputs were on the decline. "Not only the closure of enterprises but also the registration of new ones was in decline," he said, adding that a total of 1,130 industries were registered in the previous fiscal year 2022/23, while the registration dropped to 727 this year.

The commerce sector also presents a grim reality. In the last fiscal year, a total of 1,304 business firms were registered, which decreased to 1,175 this year. The number of business firms closing last year was 19, which increased to 26 now, according to Bhusal.

The economic downturn particularly impacted production industries, said Thakur Kumar Shrestha, Chairperson of FNCCI, Rupandehi. "Rupandehi is known as an industrial hub. There are large industries here. However, some industries are closed and those in operation are at 30% to 40% production capacity."

In addition, 10 cement factories are closed in the district. The business and construction industries are also facing challenging times. The government must heed the suggestions provided by the businesspersons.

Shrestha highlighted the need to address the private sector's agenda in the forthcoming budget.

(With inputs from RSS)