Special Economic Zone (SEZ) in Birgunj

1. Introduction
 

Special Economic Zone (SEZ) is a tax free zone with industries and trading houses specially geared towards export . It combines both trade and manufacturing. The essence of SEZ is the establishment of modern manufacturing units in the related industrial estate by providing suitable package of incentives to foreign and local investors in beaurocracy hassle free environment. Though, in concept, SEZs are made both for the local and foreign investors, in reality attempt is to attract foreign multinationals and industrial companies, which can bring both investment and technologies in order to generate employment and enhance technological capability of indigenous investors as well as earn foreign currency. SEZs are thus essentially special enclaves created for the benefit of the country by bringing foreign investors.

Government of Nepal has decided to establish SEZ at the periphery of Birgunj, Panchkhal, of Kabhre and at Ratmate-Jilling of Nuwakot. Prefeasibility study to establish the SEZs has already been completed for these Locations.

 

  

2.Birgunj and its Periphery
 

Birgunj is one of the main industrial city of the nation, which lies in the Central Development Region of Nepal and is about 270 km. from Kathmandu the capital city. The whole area of Parsa district lies in the southern fertile plain of Nepal and is bordered in the south by India. Birgunj is the headquarter of Parsa district and is one of the major gateway to India in Central Region of Nepal.

Significant numbers of export oriented industries of various kinds have been established in Parsa, Birgunj and its vicinity. Hetauda Industrial District (HID) in Hetauda is only about 40 km. from Birgunj city. This industrial estate also helps to promote the SEZ at Birgunj. Fertile land and existence of numerous irrigation schemes have further enhanced the prospect of agro-based industries in Parsa district and its vicinity. At present industrial products such as ready made garments, woolen carpets, pashmina, woolen garments, handicrafts, medical herbs, precious and semiprecious stones and ornaments, leather goods, hand made papers, vegetable ghee, cotton towels and clothes, agro products (fruits, vegetables etc.) are being exported to India and other countries. Industries with investment about 729 million rupees as authorized capital are being established only in F/Y 2002/03 in this Development Region.

Since Inland Container Depot (ICD) is constructed at Birgunj it will be very easy to export the productions. As the broad gauge railway line is also connected to the ICD, it helps to promote the establishment of SEZ at Birgunj from where the exported goods could pass directly to the Calcutta port by rail. The boarder city of India, Raxaul, is about 3 km away from Birgunj city. Being closer to the boarder with India, Birgunj has best benefit and the golden opportunity to send the production to the different cities of India as well as to import the raw materials from those cities.

 

  

3. The proposed location of SEZ at Birgunj
 

a) BSF's Sugarcane Farm at Simara, Bara

    
 

For the construction of SEZ in Birgunj the GON has allocated about 500 Ha (800 bigahs) of land which was previously been under sugarcane farm of Birgunj Sugar Factory. The land lies in Simara & Dumarbana VDCs of Bara disctict.

The main market at Birgunj is about 27 km. away from this while the nearest highway is only 3 km. away.  Water have to made available from the boring well system. Dudhaura river and existing canal are available for drainage outlet. Telecommunication facilities and postal service are available near by Electric power supply can be supplied from 132 KVA  Power grid through Simara substation. The Simara Airport is about 1 km. away from the proposed area. Birgunj ICD is 31 km. away. HID (Hetauda Industrial District) is also near from this area.

The land is divided into 5 large plots spread along 4 km of road stretch. It is slightly tilted towards south.

In 2004/5, the SEZP has carried out pre-feasibility study for establishment of SEZ in this area. Based on that study estimated amount of investment for construction of basic infrastructure (road, storm and waste water drainage, Electricity, communication etc) is Rs. 5362 million.

This fiscal year (064/65) SEZP has started construction of Garment Processing Zone (GPZ) in a part of the plot A of BSEZ. GPZ will cover about 100 Ha of land. This year’s target is to upgrade the approached road, construction of boundary wall with some river training works.

 

 

 

 

  
b) Land near ICD    
 

 

The main market at Birgunj is 4 km. away form the ICD at Birgunj. To the north side of ICD, more than enough land is available for SEZ. The offer site on the west of ICD is about 3.5 km. in length (from ICD to the Tilau River) and about 2 km. in width. At present the land is occupied by spores villages and paddy fields. If SEZ is established near ICD it will be very easy to extend the railway line up to SEZ area. However, cost of land is high.

 

  

Latest Photos of Simara Birgunj SEZ
 

 

Industry Mix of the potential Industries in Birgunj SEZ: Birgunj

 

  

S.N.

Industries Categories

Type of industries

Unit

Quantity

Remarks

 

1

Large Industries

1

Diamond and gems cutting

No

1

Manuf.

 

2

Large Industries

2

Electronic goods (TV, VCR ,computer, diskette)

No

1

Manuf.

 

3

Large Industries

3

Export quality alcoholic beverage

No

1

Manuf.

 

4

Large Industries

4

Gold and Silvery Jewellery

No

1

Manuf.

 

5

Large Industries

5

Iron and steel products (hospital , lab accessories)

No

2

Manuf.

 

6

Large Industries

6

Jute and jute product

No

1

Manuf.

 

7

Large Industries

7

Pharmaceuticals

No

1

Manuf.

 

8

Large Industries

8

Readymade Garments

No

4

Manuf.

 

9

Large Industries

9

Woolen carpets (hand knotted)

No

4

Manuf.

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

10

Large Industries

1

Hotels

No

2

Service

 

 

 

 

 

 

2

 

18

 

 

 

 

 

 

 

 

1

Medium Industries

1

Solvent extracts, oil  sal seed

No

1

Ag

 

1

Medium Industries

2

Wooden and bamboo products

No

2

Ag

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

1

Medium Industries

1

Bristle and bristle products (artist brush paints brush)

No

1

Manuf.

 

2

Medium Industries

2

Cereal food preparations

No

1

Manuf.

 

3

Medium Industries

3

Computer software

No

1

Manuf.

 

4

Medium Industries

4

Electronic and electric goods

No

2

Manuf.

 

3

Medium Industries

5

Instant foods

No

1

Manuf.

 

4

Medium Industries

6

Jute and jute goods (sacks, Hessian, twine, mat)

No

1

Manuf.

 

5

Medium Industries

7

Leather goods (jackets, shoe, purse, wallets, belts)

No

1

Manuf.

 

6

Medium Industries

8

Metal, wood craft and utensils

No

1

Manuf.

 

7

Medium Industries

9

Mountainering equipment and wear

No

1

Manuf.

 

8

Medium Industries

10

Non alcoholic beverage (soft drink)

No

1

Manuf.

 

9

Medium Industries

11

Paints

No

1

Manuf.

 

10

Medium Industries

12

Pharmaceuticals (animals)

No

1

Manuf.

 

11

Medium Industries

13

Readymade garments

No

2

Manuf.

 

12

Medium Industries

14

Rosin and turpentine

No

1

Manuf.

 

13

Medium Industries

15

Tea and coffee processing

No

1

Manuf.

 

14

Medium Industries

16

Textile crafts and wears

No

1

Manuf.

 

15

Medium Industries

17

Tooth paste and powder

No

1

Manuf.

 

16

Medium Industries

18

Woolen carpets

No

1

Manuf.

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

1

Medium Industries

1

Ground talk , raw talk

No

1

Mineral

 

2

Medium Industries

2

Marble slabs and store carving

No

1

Mineral

 

1

Medium Industries

3

Mineral water

No

1

Mineral

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

2

Medium Industries

1

Travel and tourism

No

1

Service

 

 

 

 

 

 

1

 

27

 

 

 

 

 

 

 

 

3

Small Industries

1

Dairy products and condensed milk

No

2

Ag

 

4

Small Industries

2

Essential oil

No

1

Ag

 

5

Small Industries

3

Floriculture (cut flower , orchids)

No

2

Ag

 

6

Small Industries

4

Flower seeds, bulbs, tubers, plants

No

1

Ag

 

7

Small Industries

5

Fruit, fruit juice, preservation, canning

No

2

Ag

 

8

Small Industries

6

Ginger, cardamom and high value crops

No

2

Ag

 

9

Small Industries

7

Herbal tea

No

1

Ag

 

10

Small Industries

8

Honey

No

1

Ag

 

11

Small Industries

9

Jam, jelly, juice

No

2

Ag

 

12

Small Industries

10

Medicinal herbs

No

2

Ag

 

13

Small Industries

11

NTFPs (Rudrachhya, high mountain high value herb

No

2

Ag

 

14

Small Industries

12

Seed production (vegetable, oil, niger)

No

1

Ag

 

15

Small Industries

13

Vegetable ghee

No

3

Ag

 

16

Small Industries

14

Vegetable preservarion (mushrooms+)

No

1

Ag

 

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

1

Small Industries

1

Ayurvedic medicine

No

1

Manuf.

 

2

Small Industries

2

Bone and horn products

No

1

Manuf.

 

3

Small Industries

3

Ceramic and clay products

No

1

Manuf.

 

4

Small Industries

4

Cotton garments / Dhaka / Khadi

No

4

Manuf.

 

5

Small Industries

5

Fish preservation and caning

No

1

Manuf.

 

6

Small Industries

6

Gift items (metal frames , toy kits, idols)

No

1

Manuf.

 

7

Small Industries

7

Hand tools , garden equipment

No

1

Manuf.

 

8

Small Industries

8

Hides and skins

No

3

Manuf.

 

9

Small Industries

9

Household textile goods (towels, bed sheets)

No

1

Manuf.

 

10

Small Industries

10

Knife, wear, caps, hosiery

No

3

Manuf.

 

9

Small Industries

11

Leather wears

No

3

Manuf.

 

10

Small Industries

12

Metal statue

No

2

Manuf.

 

11

Small Industries

13

Nepali khukure and crafts

No

1

Manuf.

 

12

Small Industries

14

Paper and paper products

No

3

Manuf.

 

13

Small Industries

15

Pasmina shawl, blankets, scarf

No

4

Manuf.

 

14

Small Industries

16

Silk and silk products

No

3

Manuf.

 

15

Small Industries

17

Silver goods, crafts, curio, jewellery  filigiree

No

4

Manuf.

 

16

Small Industries

18

Stone carving

No

2

Manuf.

 

17

Small Industries

19

Strawboard

No

1

Manuf.

 

18

Small Industries

20

Table ware (table mat, cover and other wares)

No

1

Manuf.

 

19

Small Industries

21

Thanka, paper products, arts and art prints

No

5

Manuf.

 

20

Small Industries

22

Wall hanging and bead jewellery, bags, purse

No

1

Manuf.

 

21

Small Industries

23

Wood carving and sclupture

No

2

Manuf.

 

 

 

 

 

 

49

 

 

 

 

 

 

 

 

 

 

22

Small Industries

1

Semi precious stone / healing stones

No

1

Mtneral

 

 

 

 

 

 

1

 

73

 

 

 

 

 

 

 

 

 

 

 

Total

 

118

 

118

 

 

Industry Typology: Birgunj

 

  

S.N.

Type

Categories

Total
Small Medium Large
1 Agro-based 23 3 0 26
2 Manufacturing 49 20 16 85
3 Mineral 1 3 2 6
4 Services 0 1 0 1
  Total 73 27 18 118