The committee has selected Nawa Durga Khadhya Udhyog of Kailali, Sumi Pharmaceuticals of Nawalparasi, Fleur Himalayan of Nawalparasi, Gaida Wildlife Camp of Chitawan, Texyarn Industry of Bhairahawa, Shree Antu Tea Estate of Ilam from a total of 34 applicants for the ´sick´ status, a source privy to the issue told Republica. [break]
Officials say the technical study, including due diligence auditing and field study, of the six firms is at the last stage.
“The technical study, due diligence auditing and field study is underway in all other applicants,” said Industry Secretary Krishna Gyawali. He, however, chose to keep mum on why the previous proposal to declare four firms as ´sick´ is gathering dust in the cabinet.
MoI had forwarded the names of four firms -- Birat Leather of Makawanpur, Birat Shoes of Kathmandu, Shree Nepal Boarders of Mahottari and Basulingi of Kailali - for the ´sick´ industry to the cabinet on May 15.
Sources at MoI said decision on the four industries has been delayed because of different interpretation of Clause 25 of the Industrial Enterprise Act 1992 by the cabinet members.
According to the clause, industries running in loss for the five years and with production capacity of 20 percent or less can be declared ´sick´.
MoI had asked industries running in loss for five straight years and with production capacity of less than 20 percent to apply for the ´sick´ industry status last year. A total of 38 industries, including Fulbari Resort of Kaski and Bhrikuti Pulp and Paper of Nawalparasi, had applied for the ´sick´ status.
The industries declared ´sick´ by the government are entitled to get subsidy in interest rates of the banks. They also get additional loans as well as extension of loan repayment date, among other facilities.
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