A taskforce formed to make recommendations on operationalising Bhairahawa-based Special Economic Zone (Sez) has suggested banning strikes inside the Sez and operate it 24 hours a day for export-import purposes.

The panel headed by Dinesh Kumar Ghimire, joint secretary at Ministry of Industry, also suggested ensuring uninterrupted electricity supply to the Sez.

Energy crisis and labour unrest have remained as big concerns of industrialists. While the labour problem has somewhat eased, power outages have constrained the ability of industries to utilise their full capacity.

“Bandas and strikes should be banned inside the Sez and surrounding areas within 5km radius,” the taskforce recommended.

Although the industrialists have been demanding that strikes be banned, the proposed Sez Act and Sez Operation Standard and Working Procedure and have not mentioned that such activities would be banned inside the Sez. Both the documents have stated that acts that harm the industries will not be allowed.

After a failure to bring the Bhirahawa Sez into operation even after its inauguration on Nov 18, 2014, the government formed the taskforce to suggest measures to enable its operation.

The government plans to bring it into operation through the Sez Operation Standard, but the taskforce has pointed out several problems that discourage industries to set up inside the Sez. “One of biggest concerns of the industrialists is the long procedure for the selection of industries,” said the taskforce’s coordinator Ghimire.

As the Operation Standard has provisioned that the Sez authority should first call for the expression of interest, the taskforce has suggested proposals be directly called from interested industries. It has also recommended that the number of days required for issuing approval or rejection of the proposal be lowered to 90 days from the current 150 days. With the Operation Standard allowing the government to terminate licences of non-operating industries as per the agreement signed or those acting against the agreement, the taskforce has suggested that a deadline of six months be fixed for the industries to start operation. In the case of out-of-control situation, it suggested that the deadline be extended by six months by fining the concerned industry Rs100,000.

The taskforce has recommended that the maximum licensing period be set at 90 years, with the industries requiring to renew the permit every 10 years after the first 30 years ends.

It has also asked for a review of the land lease rate. “The land lease rate in the Bhairahawa Sez is higher compared to Bangladesh and other industrial zones in the country,” said Ghimire.

The Operation Standard has fixed the rate at Rs150 per month per square metre which will be hiked by 10 percent every year.

The panel has recommended ensuring facilities such as immigration, bank, customs, postal, labour, tax, insurance and security under one window system. The operation standard has not addressed this issue, according to the taskforce. “The Sez Operation Standard has failed to make provisions that are attractive to industries,” said Ghimire.

Other recommendations of the taskforce include prioritising the introduction of the Sez Act as soon as possible, providing bonded warehouse facilities,

more incentives for export-based industries, special initiative to attract multinational companies inside the Sez, and incorporating the services industry.