The Confederation of Nepalese Industries (CNI) has requested immediate withdrawal of the decision to increase the land rent for the industries in the industrial estates.
A delegation of CNI led by its acting president Krishna Prasad Adhikari met Minister of Industry, Commerce and Supplies Dilendra Prasad Badu and Industry Secretary Arjun Prasad Pokharel on Tuesday and asked them to withdraw the decision to increase the rent made by the Industrial Area Management Limited and solve the problem for good.
It was said that the industries in the industrial estate are in trouble after the bill was sent to the industries by increasing rent by up to 687 per cent with the decision of the Board of Directors of Industrial Area Management Limited on July 6.
The meeting of the Industrial Area Management Limited decided to increase the rent by a maximum of 6,875 with effect from July 17, 2018 despite the disagreement of the stakeholders in the meeting held on November 21, 2018.
However, the decision was postponed after the direction of the then Minister for Industry, Commerce and Supplies because of disagreement and protest of the industrialists.
But again the board meeting of the Industrial Area Management decided to increase the rent of land for industries effective from July 17, 2018.
The CNI has requested to withdraw this type of decision, which will only affect the investment in the manufacturing industry and discourage the private sector.
The Confederation has serious objections to the activities of the Industrial Area Management Limited, taking demand charges for electricity based on the equipment in the industry (including those in storage), installing meter for the water required by the industry and increasing the rent of the land excessively.
Adhikari said that at a time when the industries are affected by COVID-19 and they have not revived, they will not be able to bear the increase in rent from 98 per cent to 687 per cent.
He asked to solve the problem quickly and create an environment for the industries to work smoothly. He also said that there is a need to restructure the Industrial Area Management Limited.