Industrial Income up by 8%w

Kathmandu / Oct. 2: In the last quarter of the Fiscal Year 2020/21, about 64.8 per cent industrial capacity in the country was utilised, concluded the ‘Industrial Status Report’ published by the Confederation of Nepalese Industries (CNI).

The first report produced after the analysis of the industrial activities in the major industrial areas in Nepal concluded that the income of industry increased by 8 per cent against the last quarter of FY 2019/20. Such income in the fourth quarter of FY 2018/19 was negative by 4.7 per cent.

The report has shown that Nepali economy is gradually coming out from the impacts of the COVID-19 pandemic. The pandemic had directly affected the utilisation of the industrial capacity.

Vice chairman of the National Planning Commission (NPC), Dr. Bishwo Nath Poudel, launched the first issue of the report at a programme on Friday. It includes the detailed statistics on the status of manufacturing industry, and service, agriculture and energy sector.

In the fourth quarter of the last fiscal (mid-April to mid-July), agricultural sector industries paid 8.3 per cent interest on loans on an average, energy sector industries 7.4 per cent, manufacturing enterprises 7.7 per cent and service sector businesses 8.4 per cent.

Manufacturing industries have obtained loan equal to 66.1 per cent of their working capital.

About 83 per cent of the industries participated in the survey said that they were ready to make new investments. The report showed that 69.7 per cent industries are relying on generator to operate their plant. This contrasts the Nepal Electricity Authority’s information that the electricity is surplus in the country. Fossil fuel based energy has increased the production cost by 4.9 per cent, read the report.

Dr. Poudel said that the government was working on the basis of the statistics. “Governance based on the statistics is the good governance. We are trying to formulate policies based on the statistics,” he said.

According to him, the report has helped the government with the present status of the industrial sector and information about the plight of the private sector entrepreneurs and businesses.

President of CNI Vishnu Kumar Agrawal said that CNI was trying not only to present recommendations to the government but also to show the real picture of the industries.

He said that the report in future would include more information.