The Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) has hailed programs for
infrastructure development in the new budget, but said the budget lacks
incentives for export-oriented industries and substantial programs to
address existing energy crisis.
Organizing a press meet here on Tuesday to make public its view on the annual budget unveiled on Sunday, the apex body of Nepalese private sector said though the budget has some good program for long-term energy supply, it lacks programs to encourage private power producers to address energy crisis.
Speaking at the press meet, Gyanendra Lal Pradhan, executive committee member of FNCCI, said the budget has not addressed the concerns of the private power producers who can bail the country out of the energy crisis by completing undergoing projects.
“Instead of helping undergoing projects that can end load-shedding within next five years, the budget talks about using surplus power for the east-west electric railway and building cross-boundary transmission line for export,” said Pradhan. “Power producers have been left discouraged. They cannot earn profit by selling power are the existing power purchase agreement (PPA) rate.”
He also said project development cost is increasing at a hefty pace. “Though there is provision for income tax and customs duty waiver, the government still charges 10 percent VAT on construction materials and contract,” he added.
The FNCCI had demanded that the government reimburse certain percentage of VAT paid by power producers and review PPA rates.
“But the government didn´t address our demands. It is also silent on our demand of using remittance amount in hydropower projects instead of going for bond investment,” added Pradhan.
FNCCI also said the budget of Rs 300 million allocated to distribute incentives for export-oriented industries is too low. “The budget repeatedly talks about promoting export-oriented industries. But the amount allocated made for the purpose is simply insufficient,” FNCCI said in a press statement issued on Tuesday.
Bhaskar Raj Rajkarnikar, acting president of FNCCI, thanked the government for the on-time budget. “It will increase public expenditure and make the economy vibrant,” the statement quoted Rajkarnikar.
Among others, FNCCI has welcomed the government decision to establish international standard exhibition center and dry port in Kathmandu and the announcement of the Prime Minister Entrepreneurship Award to individuals/firms investing more than Rs 1 billion.
src: Republica
Organizing a press meet here on Tuesday to make public its view on the annual budget unveiled on Sunday, the apex body of Nepalese private sector said though the budget has some good program for long-term energy supply, it lacks programs to encourage private power producers to address energy crisis.
Speaking at the press meet, Gyanendra Lal Pradhan, executive committee member of FNCCI, said the budget has not addressed the concerns of the private power producers who can bail the country out of the energy crisis by completing undergoing projects.
“Instead of helping undergoing projects that can end load-shedding within next five years, the budget talks about using surplus power for the east-west electric railway and building cross-boundary transmission line for export,” said Pradhan. “Power producers have been left discouraged. They cannot earn profit by selling power are the existing power purchase agreement (PPA) rate.”
He also said project development cost is increasing at a hefty pace. “Though there is provision for income tax and customs duty waiver, the government still charges 10 percent VAT on construction materials and contract,” he added.
The FNCCI had demanded that the government reimburse certain percentage of VAT paid by power producers and review PPA rates.
“But the government didn´t address our demands. It is also silent on our demand of using remittance amount in hydropower projects instead of going for bond investment,” added Pradhan.
FNCCI also said the budget of Rs 300 million allocated to distribute incentives for export-oriented industries is too low. “The budget repeatedly talks about promoting export-oriented industries. But the amount allocated made for the purpose is simply insufficient,” FNCCI said in a press statement issued on Tuesday.
Bhaskar Raj Rajkarnikar, acting president of FNCCI, thanked the government for the on-time budget. “It will increase public expenditure and make the economy vibrant,” the statement quoted Rajkarnikar.
Among others, FNCCI has welcomed the government decision to establish international standard exhibition center and dry port in Kathmandu and the announcement of the Prime Minister Entrepreneurship Award to individuals/firms investing more than Rs 1 billion.
src: Republica
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