Deputy Prime Minister and Home Minister Bam Dev Gautam and Industry Minister Mahesh Basnet jointly inaugurated the SEZ’s administrative building.

The government had launched the SEZ plan in 2000, acquiring 55 bighas land, but the construction began only in 2003, with an estimated cost of Rs 540 million. The SEZ currently houses three building blocks and 68 plots meant for factory units to be built.

According to the project office, about 95 percent of the construction work has completed, while infrastructure like petrol pump are in final stages of completion.

However, stakeholders have express doubt whether industries would set up immediately as the government is yet to introduce the SEZ Act. The government made several attempts in the past to bring the Act, but to no avail. And, it is once again geared up to introduce the law.

Until the law is enforced, the government plans to operate the SEZ through a working guideline. The Cabinet has already endorsed the Bhairahawa SEZ Operation Manual and Working Guideline 2014. The government has said a draft of the SEZ Act has been forwarded to the Law Ministry for its inputs.

At the inauguration ceremony, Deputy Prime Minister Gautam said the government would soon introduce the SEZ Act by forwarding the related bills to the Parliament.

Stating the government plans to open 14 more SEZs, Gautam said the government was ready to provide necessary facilities for industries operating inside the SEZs. He expressed hope the Bhairahawa SEZ would help generate employment. “Foreign investment inside the SEZ will be encouraged,” he said.

Industry Minister Mahesh Basnet said the SEZ would be brought into operation at the earliest. He said the government would seek India’s help for connecting the SEZ with the southern neighbour’s broad-gauge railway network. “We have invited the Indian Industry Minister after the Saarc summit to discuss the matter,” he said.

Lawmaker Deepak Bohra said the government has to put forward a proposal, asking India for the electricity and broad-gauge railway link, which has arrived till India’s Nautanwa — 7km from the Bhairahawa SEZ.

Bohra stressed on the need for setting up a taskforce to hold talks with the Indian government to develop necessary physical infrastructure inside the SEZ. “As the SEZ is the country’s model project, its success will attract more investment for similar projects in the future.”

Industry Secretary Uttam Kumar Bhattarai said the

government plans to offer subsidies in income tax, excise duty, VAT and customs duty to factories inside the SEZ. Industries operating inside the economic zone can also take away dividend in foreign currency, besides availing other facilities like immigration, banking and export-import licenses, he said.

As per the plan, manufacturing businesses, including production units of agro-based produces, herbal products, leather goods, readymade garment, carpets, woollen items, pashmina and silk, handmade paper products, handicrafts and jewelleries will be allowed to operate inside the SEZ.

Other businesses that can set up units inside the SEZ include those related to sportswear, jewelleries and precious stones, plastic products, hosieries, assembled electrical products, electronics items, information technology and beverages.

“The firms will also receive single-window services, including customs clearance, insurance, police, fire management, health, postal, information technology, schools, child care centre, and consultancy services for promoting business,” he said.

Local entrepreneurs and industrialists have expressed happiness over the launch of the SEZ. Bishnu Sharma, president of Siddharthanagar Chamber of Commerce and Industry, said the opening of the SEZ has created optimism. “This has encouraged the private sector to contribute to economic development,” said Sharma.

“However, if the SEZ fails to offer promised facilities, it will be worthless,” said Mahesh Agrawal, member of the SEZ Development Committee.