December 6, 2022, Tuesday
Nepal 1:37:26 pm

Two third industries still rely on generators for energy: Report

The Nepal Weekly
January 4, 2022

The capacity utilisation of Nepali industries has increased as the country is witnessing decline in the impact of COVID-19.

According to an Industrial Status Report made public by the Confederation of Nepalese Industries (CNI), the capacity utilisation of the industry has significantly improved in the current fiscal year 2021/22 as compared to the last quarter of the last fiscal year 2020/21.

After studying the activities of major industrial sectors, the CNI has released the second edition of ‘Industrial Status Report’.

According to the report, Nepali industries have utilised 70.5 per cent of their total capacity in the first quarter of the current fiscal year. The capacity utilisation of the industries was 64.8 per cent in the last quarter of last fiscal year.

Meanwhile, the income of manufacturing industries has also improved during the review period.

The income growth rate of the industry is 41.15 in the first quarter of the current fiscal year 2021/22 as compared to the first quarter of the previous fiscal year 2020/21, the report said.

The study found that 61.8 per cent of industries are still operating generators for energy which increased industrial costs by 5 per cent monthly.

During the period of study, agro-based industries paid interest an average of 8.7 per cent, energy sector industries an average of 7.7 per cent, manufacturing industries an average of 8.7 per cent and service sector industries an average of 8.2 per cent. This rate of interest paid is more than the last quarter of the last fiscal year.

Similarly, manufacturing industries borrowed 54.1 per cent of their working capital from banks and financial institutions, according to the study.

Of those surveyed, 61.7 per cent said they were ready for new investments. Such industrialists were 83 per cent in the last quarter of last year.

Of the industries participating in the survey, 61.7 per cent said that they were ready for new investments. Such industrialists were 83 per cent in the last quarter of last fiscal year.

Secretary at the Ministry of Industry, Commerce and Supplies Arjun Prasad Pokharel unveiled the second issue of the quarterly report made public by the CNI the other day.

The  reports includes detailed data on the condition of manufacturing industry, service sector, agriculture and energy sector industries.

Speaking on the occasion, Secretary Pokharel remarked that the research conducted by the private sector would help the government in formulating appropriate policy. He said that the government has been incorporating the suggestions received from the private sector in the policy making process, adding that the government would continue to work with the private sector for industrial development in the future as well.

He also said that the government would move ahead by making necessary policy arrangements for the promotion of domestic industries.

On the occasion, President of the CNI Vishnu Agrawal stressed on the need to formulate a sectoral policy for industrialisation and implement it.

“We find that neighbouring Bangladesh has different policy arrangements for different industries, which has made rapid industrialisation possible there,” he said. “Nepal can make similar policy arrangements.”

Similarly, Rohit Gupta, vice-president of the Confederation, said that the member organisations of the CNI would assist the government in implementing the workplace-based skills programme to be promoted by the government. He informed that the CNI had launched ‘Skill Nepal’ campaign and aims to produce 100,000 skilled manpower annually. The research cell under the Confederation has prepared a report based on a survey of 62 industries. The Confederation is confident that this report will help in formulating fact-based policy in Nepal.