Print Edition - 2017-03-02 | MONEY
IIPB mulls relief for scrapped industries
Around 600 industries registered with DOI have lost their legal status with the new act coming into effect
Mar 2, 2017-Industrial and Investment Promotion Board (IIPB) is considering bringing a provisional policy to award time extension to industries whose registration certificates were scrapped for their failure to start operation within the pre-set time.
According to recently-endorsed Industrial Enterprise Act, any entity failing to come into operation within the predetermined date, it has to file an application at Department of Industries (DOI) seeking an extension or face annulment of its registration.As around 600 industries registered with DOI lost their legal status with the act coming into effect, a meeting of IIPB held on Wednesday discussed bringing such a provisional policy given the fact that there was no such provision in place when these industries were registered.
The meeting, held under the leadership of Industry Minister Nabindra Raj Joshi who also chairs IIPB, decided to seek suggestion from the Law Ministry on issuing such a provisional policy to provide relief to industries that were affected by the new law.
“We will forward a letter to the Law Ministry seeking suggestion and our decision will be based on the suggestion received from the ministry,” said DOI Director General Pradip Kumar Koirala, who is also the member secretary of IIPB.
The meeting also approved capital increment plan of six entities, including a hotel, two cement factories and three hydropower companies.
Soaltee Crown Plaza’s proposal to increase its capital to Rs2.9 billion from existing Rs1.26 billion has been endorsed, while Langtang Bhotekohsi Hydropower Company, a Chinese joint venture, has been allowed to increase its capital by Rs17.48 billion to Rs20.38 billion.
“With the increase in investment, the power developer will raise the installed capacity of the hydropower plant to 120MW from 97.5MW,” said a DOI source present in the meeting.
Sino Hydro Sagarmatha Power Company, another Chinese joint venture has also been allowed to boost its capital to Rs19.55 billion, with an injection of Rs3.4 billion.
The board also approved Sarbottam Cement’s capital increment plan, allowing it to hike its capital by Rs3.97 billion to Rs9.97 billion.
The board also approved merger of two units of Arghakhachi Cement with a total capital of Rs3 billion. “This is a merger rather than capital increment,” said the source.
Published: 02-03-2017 09:38