Govt to study feasibility of Morang-Sunsari SEZ

Govt to study feasibility of Morang-Sunsari SEZ
eKantipur.com, 25-Sep-2007

The government has announced that it is soon initiating a study towards declaring the Morang-Sunsari industrial corridor a Special Economic Zone (SEZ).

The Ministry of Industry, Commerce and Supplies (MoICS), in writing, informed the Morang Trade Association about the new initiatives on Monday, saying it was aimed at fulfilling the demand that the entrepreneurs of the region have been placing for a long time.

Initially the government, through the budget speech for 2007/08, announced of establishing SEZs in Birgunj, Panchkhal and Nuwakot only. However, the announcement drew flak from the entrepreneurs of the region, who have long been demanding that the corridor be declared an SEZ and the industries in the area be pledged with facilities enjoyed by other SEZs.

Holding a series of meetings with the Finance Minister, Commerce Minister and even the Prime Minister, they demanded the government to include the Morang-Sunsari corridor in the SEZ list. They have even warned the government of launching an industrial shutdown if the government did not fulfill their demand.

“The government will begin the feasibility study of the corridor first. On the basis of its findings only will the government proceed towards announcing the corridor as an SEZ,” says the letter undersigned by Padam Prasad Pandey, section officer at the planning division of MoICS.

Entrepreneurs, meanwhile, have lauded the initiative. “It is a positive start,” said Avinash Bohara, general secretary of the association, adding that the government should move ahead with its plan immediately.

However, another segment of entrepreneurs are skeptic over a positive outcome. They argued that the announcement of conducting a study of corridor smells foul because the government already has a pretty good idea about the industrial set-up and status of the corridor.

Conversion of the corridor into an SEZ would entitle entrepreneurs with facilities such as exemption on customs duty, income tax, value added tax and local development tax, among others.

It will also guarantee that the industries in the zone would not be nationalized. Investors would also enjoy lower land-lease fees and duty free import of up to three vehicles for industrial operations, among others.

Most importantly, it would ensure absence of labor stir, as the SEZ Act of the country restricts workers in the Zone from launching strikes that disturb manufacturing and normal operations of the industries. The government has also committed to provide a one-stop service on tax clearance, banking services, visa renewal and other import-export procedures from within the SEZ.