A number of industrialists are vying to open new factories in Nepal, encouraged by the investment friendly environment.

Recently, Baba Baijanath Sugar Mill announced plans to set up its production plant in Dumariya of Katahariya Municipality-9. The sugar factory will be investing a total of Rs1.25 billion to produce 250 tonnes of sugar daily from the new facility.

Baiju Prasad Jaisawal, proprietor of the sugar mill said the factory will have a capacity to utilise 2,000-2,500 tonnes of sugarcane daily. Jaisawal assured that they would provide timely payment to sugarcane farmers.

Similarly, Shreeram Sugar Mill has also started work to set up its production plant in Garuda Municipality. According to the sugar factory, it is now in the process to install the necessary equipment at the production plant.

Garuda Sugar Mill has already been operating its factory in the area. However, sugarcane farmers have been complaining against the existing sugar factory for not receiving their payment on time. The establishment of new sugar factories is expected to provide respite to farmers.

There are seven large factories operating in Rautahat district. Apart from sugar mills, three new manufacturing factories have also started their preparation to set up their production plants this year.

Godavari Steel Industries is one of the manufacturing firms seeking to operate a factory in Balchanpur of Chandrapur Municipality-9. The factory is slated to start production in the next two months. Two production plants of Baba Distillery are located in Birta and Dumariya. Jay Kant Jha, chief at the Office of Cottage and Small Industries, Gaur, said new investors are being attracted to open their factories due to the investment friendly environment. Former Prime Minister Puspa Kamal Dahal had also announced Rautahat district as a hub for the industries.

The new factories are expected to provide more employment opportunities at the local level. Jha said the authority has to form an environment conducive for the promotion of industries for the overall development of the area. According to him, the assurance for safe environment along with adequate infrastructure in particular attracted investors.

As per the office, there are a total of 943 service related firms operating in the district. Similarly, 730 manufacturing, 229 constructions, 157 agricultural and forest based and 94 tourism businesses have been established.

In the first nine months of the current fiscal year, 587 new firms have taken licences. Over the period, the government has collected revenue worth Rs10.8 million in registration fees.

Likewise, the registration of bricks factories has also surged. As of now, there are a total of 132 bricks factories operating in the district.