INTERACTION WITH INVESTORS AND STAKEHOLDERS IN BIRANAGAR

A team of high ranking officials from the Ministry of Industry, Commerce and Supply (MOICS) and the Special Economic Zone Project (SEZP) visited Biranagar from 8 May to 11 May 2008 and carried out intensive consultation and interaction programmes with local entrepreneurs and stakeholders. The team comprised of Mr. Niranjan Baral, Joint Secretary and Mr. Uddhav Adhikari Under Secretary  from  MOICS and Mr. Jagadiswar Shrestha, the Project Chief, Mr. Arjun Thapa, Sr. Engineer and Mr. Padma Pandey, Legal Officer from SEZP.

The team held intensive discussions with the management of Biratnagar Jute Mills (BJM) and Morang Sugar Mills along with the representatives of various local officials and entrepreneurs concerning the proposal to declare and construction of SEZ in lands of above two mills and that of the Ganapati Cotton Mills that was forwarded by the local business community.

 With the help of the Nepalese and Indian costume officials the team also visited the proposed new sites of costume along Nepal India border at Bhediyahi which lies about a kilometer east of the present costumes point. It acquired information about the proposed and existing infrastructure in the costume area and schedule of construction etc.

 An intensive interaction programme was held on the 9^th May in the hall of Birat Nagar Costume Office. About 75 representatives from Biratnagar Chamber of Commerce and Industry, Morang Chamber of Commerce, Morang Traders Association, professors from various campuses of Tribhuvan and Purvanchal universities, local NGOs, press and local government officials attended the interaction programme.

 Mr. Shrestha presented a paper entitled “SEZ: conception, implementation and proposed legal regime”. Mr. Shrestha explained the international practices giving examples of SEZs in China, India and other neighboring countries, their legal regimes, costs and benefits to the national economy, modality of SEZ being implemented in Nepal and reasons of that as well as progress made so far. He briefly outlined the legal regime in the proposed law.

 He also explained why Itahari-Biratnagar corridor can not be declared SEZ at present which was one of the demands forwarded by the business community. Nepal has opted for the enclave model of SEZ due to the existing situation of porous border and weak monitoring. The said area already contains hundreds of small to large industries most of which are not export oriented. Hence in practical terms it will be difficult to transform this corridor into SEZ.

 After the presentation a free and frank discussion took place. Mr. Jagadish Rathi the executive member of Federation of Nepalese Chamber of Commerce and Industries (FNCCI), Mr. Ful Kumar Lalwani of BJM, Mr Dinesh Golcha and Mr. Ashok Muraraka of Association of Industries, Morang and others raised various questions regarding

possibility of construction of SEZ in Biratnagar, infrastructure needed and schedule of implementations etc. They emphasized on necessity to implement the project as soon as possible since even though being the main industrial city of the nation and having all pre-requisites for SEZ, Biratnagar still did not figure in the SEZ scheme of the country.

  Mr. Niranjan Baral, the Joint Secretary from MOICS, answered various queries regarding SEZ policy of the government and assured that once the consultants have finalized the report and recommended the possible sites for SEZ in the vicinity of Biratnagar it will undertake necessary measures.  Mr. Shrestha elaborated technical and implementation aspects of SEZ.

 The Chief District Officer of Morang expressed hope that SEZ in Biratnagar will materialize very soon.

The team also visited several projects in the rural areas around Biratnagar and Dharan being implemented under entrepreneurship development programme of the Micro Economic Development Project (MEDEP) of MOICS.

 The programme was carried out with active cooperation and in facilitation with the Biratnagar Costumes Office, Ministry of Finance. Coordination and active efforts of Mr. Shyam Dahal, the Chief of the Costumes and Coordinator of the Trade Facilitation Programme is highly appreciated.

 A team of consultants will visit the site soon and will carry out techno-economical study which will look at the viability of creating a SEZ in that area.

December 2, 2007

Visit by Hon. Member of National Planning Commission MR. P. R. Rajkarnikar.

Honorable Mr.Pushpa Raj Rajkarnikar, the member of National Planning Commission (NPC) visited the Export Processing zone under construction at Bhairahawa (BEPZ) on 2^nd of December, 2007. Discussion was held on future prospects of Special Economic Zone, its benefits and drawbacks. The Project Chief of Special Economic Zone Project Mr. J. N. Shrestha briefly explained the progress of the work and future prospective of the Zone. Mr. Rajkarnikar expressed satisfaction over the progress achieved so far. Mr. Shrestha emphasized on need to increase pace of work by increasing budget allocation and by passing the SEZ law under discussion under cabinet. Hon. Member Rajkarnikar and his team enquired about various aspects of BEPZ and also the measures taken to protect the Zone from floods in the Danda River. He assured that the NPC will think seriously about increasing budget allocation for BEPZ in the next fiscal year.

December 4, 2007

Visit by Mr. Tej Raj Shakya, Jt. Secretary, Planning Division

Mr. Tej Raj Shakya, Joint Secretay, Planning and officials from the Planning Division of Ministry of Industry, Commerce and Supplies visited Bhairahawa Export Processing Zone (BEPZ) on 4^th December 2007. The team acquired information about the work being done and future prospects. It expressed satisfaction over the progress made so far.

a.   Modality of the Indian assistance including private sector involvement

b.   Involvement of IL&FS

c.   Terms and conditions of IL&FS involvement

d.   Acquire information of Indian SEZs

e.   Observe IL&FS implemented SEZs  

The delegation was led by Mr. N. Baral, Joint Secretary of Ministry of Industry Commerce and Supplies (MoICS). Other members of the delegation were Mr. J. N. Shrestha, SEZP Project Chief, and Mr. U.K. Adhikari, Under Secretary of MoICS looking after industrial promotion. The visit was undertaken from    9 to 17   December 2007. The   delegation first visited Delhi and held discussions with  officials  of the  Ministry of Commerce  and  Industry of Government  of  India  and  Managing  Director  of   IL&FS.   After  that  the   delegation members flew to Mumbai and held several round of discussions with the officials of IL&FS, Maharastra government and executives of several SEZs. It devoted one day to site visit to a privately developed SEZ in Tamil Nadu near the city of Chennai.  The delegation members acquired information on laws, rules and regulations governing SEZ , hindrances encountered during its implementation and promotional activities undertaken.  During discussions it was agreed that MOICS and MOIT/GoI will work together on implementing the BSEZ. All available information along with the proposal of IL&FS will be sent to MOIT/GoI and further discussions will be held on mutually convenient time. IL&FS will on behalf of GoI will coordinate all activities related to BSEZ from India side. It will also forward proposal to SEZP/MOICS at the earliest.The visit was accomplished with the active support from the Indian Embassy in Kathmandu, Nepal. Indian Embassy in Kathmandu and IL&FS officials arranged all meetings and other programs of the visit. Cooperation from Economic Counselor Mr. Harsa Jain and Mr. Anil Goyal Vice President and Mr. Salil Hasabnis Manager IL& FS is highly appreciated.

Mr. B.B.Thapa, Secretary Minister of Industry, Commerce and Supply being briefed about Progress of construction works in BEPZ by J.N.Shrestha, Project Chief.

Mr.B.B Thapa, Secretary, Ministry of Industry, Commerce and Supply speaking at the meeting with members of Siddhartha Nagar Chamber of Industry and Commerce.

Mr. B.B.Thapa, Secretary Minister of Industry, Commerce and Supply being briefed about Progress of construction works in BEPZ by J.N.Shrestha, Project Chief.

Bhairahawa, May 1, 2005:

The Joint Secretary of National Planning Commission (NPC) Mr. Keshav Prasad Bhattarai visited Bhairahawa, and inspected the ongoing construction of infrastructure of Export Processing Zone being developed in Bagaha VDC. During inspection he expressed satisfaction regarding the progress of the construction work and also showed concern over early completion of the whole infrastructure so that export oriented industries could be established at the earliest. Mr. Bhattarai was accompanied by Mr. Jagadiswar Nath Shrestha, the Project Chief of Special Economic Zone Project.

Bhairahawa, June 1, 2005:

The Secretary of Ministry of Industry, Commerce and Supplies (MOICS) Mr. Bharat Bahadur Thapa on his visit to Bhairahawa, inspected the ongoing construction of infrastructure of Export Processing Zone being developed in Bagaha VDC. During inspection he expressed satisfaction regarding the progress of the construction work and also showed concern over early completion of the whole infrastructure so that export oriented industries could be stablished at the earliest. secretary Mr. Thapa was accompanied by Mr. Jagadiswar Nath Shrestha, the Project Chief of Special Economic Zone Project and Mr. Surya Bahadur Manandhar, Executive Director of Nepal Intermodal Transport Development Board.

During a discussion programme on developing Bhairahawa-Butwal Sector, as an economic corridor, organized by Siddharthanagar Chamber of Commerce and Industries, he also called upon entrepreneurs to invest in the Special Economic Zones being developed in the country. Export Processing Zone Bhairahawa is a part of the concept of Special Economic Zone. Secretary Mr. Thapa also visited the Inland Clearance Depot (ICD) at Belhiya, Nepal adjacent to Nepal-India border.

Mr. J.N. Shrestha, the Project Chief, participated in an interaction program organized jointly by the Industrial District Management Ltd, Butwal Branch and Butwal Chamber of Commerce and Industries on 10 June 2005 for the presentation of preliminary results of the Pre-feasibility study of proposed Industrial Zoning in Butwal-Bhairahawa sector.Mr. Shrestha explained the concept of Special Economic Zone, its implication to the industrial growth of the nation and briefly presented the highlights of proposed SEZ Law under draft. The interaction program was participated by industrialists and business community of Butwal as well as Bhairahawa. Mr. R.K. Panta, Zonal Administrator and Mr.J.B. Karki, General Manager of IDM also spoke about the industrial potential of this area.

Mr. J. Shrestha the Project Chief addressing the interaction Programme..

Interaction Programme with Butwal Chamber of Commerce and Industries.

Visit to Birgunj

On 26 June Mr. J.N. Shrestha, the Project Chief , visited Birganj to inspect the land of Birganj Sugar Factory in order to access the suitability of constructing Garment Processing Zone (GPZ) in a part of it. He was accompanied by Mr. Deepak Bhattarai a Feasibility and Planning Section chief of SEZP and delegation from Garment Association of Nepal(GAN) led by its president Mr. Kiran Sakha. Mr. Sakha and his team will give its opinion after returning of Kathmandu. The SEZP and GAN team also visited the sugar cane farm land of Birganj Sugar Factory in Simara which is proposed to be granted for future construction of SEZ in Birganj.

Bhairahawa, July 1, 2005

Mr. Punya Prasad Neupane and Mr. Nindra Pradad Upadhyaya, the joint Secretaries of Administration, Foreign Investment and Industrial Promotion and planning & Information Management Divisions respectively of the Ministry of Industry, Commerce and Supply(MOICS) visited Bhairahawa, and inspected the ongoing construction of infrastructure of Export Processing Zone being developed in Bagaha VDC. During the visit they expressed satisfaction about the progress of the construction work and expressed concern over early completion of the whole infrastructure. Both emphasized the need to establish export oriented industries at the earliest. The joint secretaries were briefed by Mr. Jagadiswar Nath Shrestha, the Project Chief of Special Economic Zone Project.

 Joint Secretaries Mr. Neupane and Mr. Upadhyaya also visited the Inland Clearance Depot(ICD) at Belhiya, at Nepal-India border. Ms. Trishna Sharma, the In-Charge of ICD, briefed them about the operation and problems of management of ICD.