"Govt to study feasibility of SEZ in three more districts" :: myrepublica.com

KATHMANDU, Nov 8: The government is soon conducting feasibility study for developing special economic zones (SEZs) in Dhanusha, Siraha and Jhapa districts.
“We will soon initiate the process for selecting consultants.

The budget for 2011/12 fiscal year has allocated Rs 6 million to conduct feasibility study,” said Yam Kumari Khatiwada, national director of SEZ Project and spokesperson of the Ministry of Industry (MoI).


The government has already initiated the process of developing SEZs in Panchkhal of Kavre, Ratomate of Nuwakot, Dhangadhi, Kapilvastu, Jumla, Biratnagar, Simara of Bara and Bhairawa of Rupandehi to boost exports by providing special facilities to manufacturers interested to shift their production facilities to SEZs.
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Of the eight SEZs in pipeline, the ones in Simara and Bhairawa are currently under construction. The government has allocated Rs 150 million to develop infrastructures in Bhairawa, acquire land in Simara and conduct Environment Impact Assessment (EIA) study in Panchkhal.

“We are planning to complete development of key infrastructures in Simara and Bhairawa this year to ensure that these SEZs come into operation at the earliest,” Khatiwada said.

However, the target of bringing these SEZs into operation has already been delayed by over a year.

The feasibility study for the construction of SEZs in Panchkhal, Ratomata Dhangadhi has already been completed, while studies on the viability of Jumla, Kapilvastu and Biratnagar SEZs are under progress.

“We expect to get feasibility report for Jumla, Kapilvastu and Biratnagar SEZs within a couple of months. We´ve already received preliminary reports from the consultants,” added Khatiwada.

The preliminary report submitted to the government in the first week of July showed that SEZs in Jumla, Kapilvastu and Biratnagar are feasible provided that the government acquires land, ensures road connectivity and prioritizes local products for the sustainability of these zones.

Local products and products sourced from adjoining districts will be sufficient for the viability of SEZs in Biratnagar and Kapilvastu, according to the report. The report added that the government should focus on promotion of local products and transport of goods to and from the district to make SEZ in Jumla viable.

The government has initiated the process of constructing infrastructures such as roads, water supply and electricity lines and other necessary facilities at proposed SEZs in Bhairawa and Simara. “We are hopeful of bringing the SEZ in Bhairawa into operation by next year,” added Khatiwada.

In an effort to institutionalize the SEZ concept, the government has registered the SEZ Act in the parliament.

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