Bhairahawa Export Processing Zone (BEPZ)

 

1. Introduction

    

Nepal urgently needs to expand its export base, and in order to widen its export trade, Foreign Direct Investment (FDI) must be attracted. To this end, EPZ is one of the major means to bring in FDI. Investment in industry sector from domestic sources alone is very limited at present. Without the inflow of foreign investment in the country drive toward industrialization and improvement in the Nepalese economy will not be significant. Present rate of foreign investment, though increasing, is not adequate. To bring transformation in the industrial front, massive inflow of foreign capital is necessary. Establishment of EPZ can attract foreign investment in Nepal. The primary objectives of an EPZ is to provide special area where potential investors would find a congenial investment climate, free from cumbersome procedures. In order to achieve this objective HMG/Nepal has decided to establish Export Processing Zone at Bhairahawa, a city in the Western Nepal near the boarder of India. Basic physical infrastructures of BEPZ is under construction and this EPZ will start its operation very soon.
     
 

 

2. Bhairahawa and its Periphery

    
 
 

Bhairahawa Export Processing Zone (BEPZ) lies in Rupandehi district of the Western Development Region of Nepal & is about 280 kilometers from Kathmandu, the Capital city. Rupandehi district lies in the southern fertile plain of Nepal & is bordered in the south by India. Siddharthanagar (Bhairahawa), the headquarters of Rupandehi district is one of the major gateways to India in Western Nepal and therefore, significant number of export oriented industries of various kinds has been established in Rupandehi & its vicinity. Only in FY 2003/04, industries with investment 763.3 million rupees as authorized capital are being established in the Western Development Region.

Butwal Industrial District (BID) in Butwal and Chaudhary Industrial Estate in Nawalparasi along Mahendra Highway further enhance the potential of the region to be the center of export oriented industries in Western Nepal. Fertile land existence of numerous irrigation schemes underline the prospects of agro-based industries in Rupandehi district & its vicinity. Lumbini Development Area, (birth place of Lord Buddha) is 22 km. away from Bhairahawa, which also helps to develop the tourism industries in its vicinity.

             Having open border with India it has benefit and opportunity to send the production to the cities of India for export, and it will also be very easy to import the raw material from those cities of India.New Delhi "the capital of India is about 1000 km. away from Bhairahawa. Major industrial centres of northern India such as New Delhi, Kanpur, Jamshedpur, and Haryana province are near to Bhairahawa. Similarly Lakhnow and Gorakhapur are about 400 km. and 95 km. respectively away from Bhairahawa.

 

  

                                                                                                                           

3. Further development projects of Bhairahawa & Vicinity    

 

 
 

Keeping in view of prospect of development of Lumbini, the birth place of Lord Buddha as a tourist destination related to religious tourism & entertainment Government of Nepal has proposed the second international airport at Bhairahawa & the vicinity. Construction of the airport will further accommodate the developing needs of EPZ. Its implementation will ease incoming & outgoing of cargo to & from SAARC & Asian region. Government of Nepal has long term planning of developing Butwal-Bhairahawa sector as industrial corridor with proper zonning. This will further enhance the industrial potential of the region.

                                                                        

 
4. Fact about Bhairahawa EPZ    

 

Location:

Located in Bagaha VDC of Rupandehi district in Western Nepal & lies about 230 km from Kathmandu and less than 2 km from Nepal India border.

  

 

Size and Shape:

The size of BEPZ is 36.8 hectors and the shapes of most of the plots are either rectangular or square. In total 62 plots are available.

  

 

Land topography: The site lies in the fertile plane land. The land is generally flat with slight inclination on the west part towards a tributary of Danda river.  

 

Accessibility:

The site in about 2 km from the border checkpoint known as Sunauli. It is connected to the Siddhartha Highway by 1.2 km long two lane road. Sunauli has Inland Clearance Deport (ICD).

  

 

Telecommunication: Sufficient numbers of telephone lines are available in the proximity to the site.  

 

Electricity:

 132 Kw power supply line passes through the area.  

 

5. Facilities at BEPZ

 

  

 

A.

   Following infrastructures facilities will be available at Bhairahawa EPZ

 

1. Water supply.  
2. Telecommunication systems.  
3.

Distribution system of electrical and electric sub stations.

  
4. Proper drainage systems around the EPZ area.  
5.

Road network systems around the EPZ area.

  
6.

Proper land developments and maintain of slopes of EPZ area.

  
7. EPZ land is protected by boundary wall around its periphery.  
8. Road touching Nepalese hinterland and the Indian border.  

 

B.

  

Service Facilities: BEPZ is intended to be self independent industrial zone is term of service to be provided to industrial unit with its boundaries. After completion of the construction BEPZ will have the following service facilities with its premises:

 

 

 Banking Post Costume
  Insurance Courier Fire Station
 

Freight Forwarding

 Child Care Security Other Necessary Facilities

 

 

After completion of its construction BEPZ will have to pre service factories with to premises:

  

 

C.   Facilities Management:

 

 

BEPZ will be administered completely by Special Economic Zone Authority under SEZ law, currently being drafted. The law envisages that it will have one window service in its true sense. All administrative works beginning from granting of license to establish industry , export-imports of raw material and finished goods, foreign currency, custom facilities etc to the closer will be performed within EPZ bundry. It will have highly flexible labor regulation which will be geared to maximise the productivity while at the same time safe guarding the legitimate interests of labor.

  
     
6. Development Works  
 
   

Work to establish BEPZ was stated in FY 2057/58. Till date, 52 bighas (approx 38h) of land has been acquired in Bagaha VDC,of Rupendehi district on the way to Sunwal from Bhairahawa. A study on prospects of export industries, operation and management aspects of BEPZ as well as its detailed design have been completed. Total cost of establishment of BEPZ including land cost according to 2005 study is 51 Crores, 24 lakhs.

Security wall, 6-8 ft high, around the land and an access road 1.2 Km. long has been constructed. With aim to develop partially in the initial phase, drainage works for industrial and storm water, internal roads, land filling etc has been completed to a minimum necessary standard in about 40 bigahas of land, while electric line has been laid in 20 bigahas. Construction of storm water, drain, deep tube well, water tank and distribution works, electric line etc has also been carried out  BEPZ will be able to offer industrial plots of land for lease to prospective national and international investors provided the SEZ law is promulgated and relevant rules and regulations are issued.

Out of estimated 51.2 crores for completion of BSEZ, about 20 crores has been spent.

 

  

New Photos of Bhairahawa SEZ
 

Land Utilization Plan and Scale/Number of Potential Industries for Bhirahawa EPZ

  

 

Description

 Utilization Plan

  • Total Area Land

  32 HA 100%
  • Road
 4.85 Ha 13.2%
  • Green belt
 0.6367 Ha 1.73%
  • Cycle Track
 0.8024 Ha 2.18%
  • Foot Path
 0.45555 Ha 1.24%
  • Greenery
 4.5079 Ha 12.3%
  • Open Space
 4.3080 Ha 12.25%
  • Parking
 0.9144 Ha 2.5%
  • Plots Total Area

(a) Ind. Plots

(b) Adm. & Services

(c) Water Treatment Plant

 

 20.0988 Ha 54.6%
16.6303 Ha 45.2%
1.5191 Ha 4.1%
1.9493 Ha 5.3%
  • Total number of Industrial plots available
 62  
  • Plot Size
    
(a) Max 3737 sq.m.  
(b) Min 1468 sq.m.  
 Recommended Type of small and medium industries

Dairy products including ghee, cheese, paneer and condensed milk, fruit and vegetable preparation (bottled, canned, dried), processed coffee, sugar cubes and ice-sugar, glucose, corn flakes, muesli, noodles and spaghetti, chocolate, biscuit and confectionery, processed honey, mineral water.

Herbal products including ayurvedic medicines, oral preparation, cosmetic and perfumes.

Textile and garment industries like, readymade garments, textiles, furnishers, leather products and garments, sportswear, mountaineering wear hosiery.

Metal and wooden products like wooden metal handicrafts, exotic furniture, utensils and kitchen ware, sculptors.

Other products like hand-made paper and paper products, plastic products, assembling industries, jewellery, gemstones, dry-cell battery, IT products.

 
  • Recommended Type of large industries

Diamond cutting and polishing, manufacturing of mechanical/electrical/electronics components and parts, tobacco-related products, alcoholic and non-  alcoholic beverages, iron and steel fabrication.

 
   
     
 

Potential Industries for SEZ Bhairahawa

  
 

S.N

INDUSTRIES TYPES

ITEMS

 POTENTIAL MARKET
1  Food Products

  • Dairy Products including butter, ghee, cheese,paneer, and condensed milk, canned, mushroom, fruit and vegetable preparations, processed coffee, corn flakes, muesli, noodles and spaghetti, chocolates, glucose, sugar, cubes and ice sugar, processed honey.
  • Indian SAARC Region and overseas markets
2  Tobacco and Beverages

  • Alcoholic and non alcoholic beverages, soft drinks in powdered form
  • Indian and SAARC Region markets
3  Herbal Products

  • Essentials oils, ayurvedic medicines, oral preparations, cosmetics, high quality incense sticks, perfumes
  • Indian and SAARC Region markets
4  Leather Products
  • Bags, gloves, shoes and apparels
  • Overseas markets
5  Garments
  • Pashmina, Dhaka, Bhangro and Woolen apparels, bed-sheets, table-sheets, bags, handkerchiefs
  • Overseas markets
6

 Hand-made

 Paper Products
  • Greeting cards, stationery,  calendars, dairies, bags and folders, paintings
  • Indian SAARC Region and overseas markets
7  Handicrafts
  • Metal and Woolen handicrafts
  • Indian SAARC Region and overseas markets
8  Metal products
  • Exotic metal and wooden furniture, kitchen ware, metal fabrication
  • Indian SAARC Region and overseas markets
9  Sportswear
  • Shoes, high altitude wear, shoes and equipment under sub-contracting
  • Indian SAARC Region and overseas markets
10  Jewellery and garments
  • Silver & White-gold jewellery with semi-precious and precious stones, diamond cutting and polishing
  • Indian SAARC Region and overseas markets
11  Plastic Products
  • Plastic toys & plastic-ware
  • Indian SAARC Region and overseas markets
12  Hosiery products
  • Hosiery products of international brands
  • Indian SAARC Region and overseas markets
13

 Assembled

 electrical/electronics

 products
  • House hold and kitchen equipment, computer, bicycles & motorcycles
  • Indian and SAARC  markets
14

 Electrical/electronics

 parts and components
  • Manufacture of parts and components for watches, electronic items, means of transport, hospital, household and kitchen, machinery, computer
  • Indian SAARC Region and overseas markets
15  IT Products
  • Software for medical, business, education, finance
  • Overseas markets