Morang-Sunsari corridor to become SEZ

Morang-Sunsari corridor to become SEZ
eKantipur.com, 11-Aug-2007

The government is preparing to declare Morang-Sunsari industrial corridor as a special economic zone (SEZ) and extend facilities to industries accordingly, said Finance Minister Dr Ram Sharan Mahat.

"The government has already moved ahead in this regard. Entrepreneurs can remain assured that the announcement on it will come soon," said he.

The Finance Minister (FM) made the commitment to a delegation of industrialists from Morang, who met him on Friday demanding that the government recognize the Morang-Sunsari corridor as the industrial area and extend facilities to promote it.

Mahesh Jaju, an entrepreneur who was also in the delegation, told the Post that the FM also informed the delegation that Prime Minister Girija Prasad Koirala has already directed him to expedite the process toward granting facilities to the industries in the corridor.

"The government will soon declare the corridor as an SEZ," said Jaju.

Once declared, industries in the corridor will enjoy income tax holiday for 5 years, exemption on customs duty, VAT and excise duty on the import of raw materials and special discount on rental charge, according to entrepreneurs.

Most importantly, the announcement will prevent workers from disturbing the manufacturing process although they will be allowed to organize under various trade unions.

President of Nepali Congress Morang district, Amrit Aryal, had also submitted a memorandum to the PM last week, when he was in the home town, seeking recognition of the corridor as a special economic zone.

Entrepreneurs had also warned the government of shutting down the industries if it ignored the establishment of an SEZ in the area.

Immediately after receiving the memorandum, the PM had directed the finance minister to work for announcing the corridor as an SEZ and providing facilities to investors accordingly.