Only half of cottage and small industries still in operation
KATHMANDU, SEP 10 -
Only half of the cottage and small industries (CSIs) registered as of the fiscal year 2009-10 are still in operation, the rest have closed down or never got off the ground. According to the Federation of Nepal Cottage and Small Industries (FNCSI), around 110,000 CSIs out of the 229,000 registered as of 2009-10 are currently functioning.
“Lack of security, proper legal provisions, advanced technology, market and managerial capability along with high interest rates have led to many CSIs to shut down,” said Lata Pyakurel, president of the FNCSI. The federation said many of the functioning factories are operating under capacity while some have turned sick.
Pyakurel stressed the need to introduce a new Industrial Enterprise Act to address the problems afflicting CSIs. “The proposed act has envisioned providing soft loans to such industries,” she said. The draft also contains special provisions for CSIs operated by women, registration of trade marks of products produced by CSIs and ensuring smooth supply of raw materials at a subsidised rate.
Micro enterprises and CSIs are considered to be the foundation for employment and income generation to eradicate poverty mainly in rural areas of Nepal. “These industries can help in modernising agriculture, promoting micro and small hydropower projects and facilitating rural tourism,” said Pyakurel.
FNCSI general secretary Shyam Prasad Giri said that the federation has been promoting capacity building of micro enterprises and CSIs to promote the sector. According to him, the federation has opened 12 Koseli Ghar in rural areas to facilitate marketing the products of these industries.
He added that they were also making efforts to link up the poverty alleviation programmes being operated by development partners. “The motive of the effort is to promote entrepreneurship skills among rural people,” said Giri. More than 35,000 micro enterprises and CSIs are affiliated to the FNCSI’s 74 district units. Similarly, it has organised 11,000 women entrepreneurs through its Women Entrepreneurs Committee in 54 districts.
Posted on: 2012-09-10 08:45