Another industry packs up

Another industry packs up
eKantipur.com, 12-Jun-2007

Citing security problem, Crescent Industries -- one of the leading joint venture companies of the district -- has shut down its operations and has decided to shift to Nigeria.

The industry was established four years ago with investment totaling Rs 500 million, including 40 percent shares from Minakshi Group of Industries of Kolkata. It had capacity to employ 500 persons in its corrugated sheet manufacturing plant.

Madan Koirala, managing director of the industry, said that the industry was forced to take the unpleasant step as it could not withstand threats and intimidations coming from various armed groups.

Tiger, an infamous local armed group, and other groups were demanding huge amount of money from the company.

The closure of industry has affected a dozen VDCs of the district. It was generating employment and giving boost to economic activities in those VDCs.

The industry unveiled its plan to shift to Nigeria on Monday after it shipped its plants into Indian territory.

Meanwhile, business community of the eastern region has dubbed the incident as 'unfortunate' and raised serious questions over government's commitment to protect investment coming into the country. “The industry's decision to relocate outside the country is very unfortunate,” Mahesh Kumar Jaju, senior vice president of Morang Trade Association, told the Post.

Suka Dev Mehta, president of Inaruwa Chamber of Commerce and Industry lambasted the local administration and government for not being serious to improve industrial security.

“Entrepreneurs are not seeking industrial security for nothing. The government must be serious toward it,” said Mehta, urging the eight-political parties in the government to work for restoring business environment in the country.