Industry Ministry's key achievements in first 100 days of current FY

KATHMANDU, OCTOBER 22: The Ministry of Industry, Commerce, and Supplies has published a progress report outlining its achievements within the first 100 days of the current fiscal year (FY) 2024/25. These initiatives form part of the ministry’s annual work plan, focusing on economic growth, startup support, and infrastructure development. They are briefly described below:

Startup Support and Economic Growth

The ministry successfully launched a low-interest startup loan program, designed to encourage entrepreneurship and innovation. As part of the government’s goal to establish 10,000 startups by 2030 and generate 100,000 jobs, the program aims to provide loans ranging from NPR 500,000 to 2.5 million to more than 600 startups this year.

To date, 5,158 entrepreneurs have submitted loan proposals, with disbursements planned by the end of the Nepali month of Poush (mid-December to mid-January). The initiative seeks to boost financial accessibility for startup founders and stimulate economic activity.

Infrastructure and Automation Initiatives

The ministry reported significant progress in infrastructure and digitalization efforts:

• Company Registration Automation: The Office of the Company Registrar now operates a fully automated online system for company registration, with plans underway to expand automation to other departments.
• Dodhara Chandani Dry Port: Construction of the dry port in Kanchanpur has commenced after receiving land-use and tree-felling approvals from the Council of Ministers recently. The project, backed by Indian assistance, will streamline cross-border trade.

Petroleum Supply and Storage Expansion

To enhance petroleum supply and storage, Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) signed a B2B agreement recently. Key developments under this agreement include:

• Pipeline Extension: The Siliguri-Charali pipeline will be extended, and an 18,900-kiloliter storage tank will be built with Indian grant support.
• Storage Expansion: A 91,900-kiloliter storage tank will be constructed between Amlekhgunj and Lothar, Chitwan, with Indian technical assistance, to strengthen Nepal’s fuel infrastructure.

Promotion of Domestic Products and Fair-Price Shops

The ministry emphasized the use of local products in public institutions, even though it may increase costs by 15%. A policy to promote domestic industries has been submitted to the Council of Ministers for approval.

To address seasonal inflation and ensure access to affordable goods, the ministry operated fair-price shops through the Food Management and Trading Company Limited and Salt Trading Corporation Limited during major festivals like Dashain, Tihar, and Chhath. These initiatives helped stabilize the prices of daily essentials nationwide.

Special Economic Zones: Investment and Job Creation

Following amendments to the Special Economic Zone (SEZ) Act, 2073, the Bhairahawa SEZ allocated plots to ten industries, with committed investments totalling NPR 3.44 billion and 3,523 job opportunities. Two industries have already begun production, while three others have signed agreements to start operations.

In the Simara SEZ, 15 industries were granted land plots, with investments worth NPR 6.84 billion and 1,287 jobs projected. Seven industries have signed agreements to commence operations.

Trade Policy Review and Enterprise Privatization

The ministry has begun a review of Nepal's national trade policy in collaboration with experts from the World Trade Organization and relevant government agencies. Additionally, it has submitted updated reports on nine inactive public enterprises to the Privatization Committee for further action.

The ministry also highlighted progress in petroleum exploration in Dailekh, with plans to fast-track its remaining goals over the next six months. It aims to achieve full implementation of its annual work plan within the designated timeline.