FNCCI Demands Immediate Halt to Administrative Force Against Industrialists

Kathmandu. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to immediately stop plans to cut power lines of industries operating within industrial districts and to arrest industrialists.

In a press release issued on Thursday, the FNCCI stated that its serious attention has been drawn to preparations to use administrative force to cut power lines and arrest industrialists in around 700 industries located within 10 industrial districts operated by the Industrial Districts Management Limited under the Government of Nepal.

According to the FNCCI, the dispute regarding the rent hike of land in industrial districts is sub-judice in the Supreme Court and High Court. The FNCCI stated that demanding the payment of dues and threatening to cut electricity by giving a short deadline of seven days—even when the Industrial Districts Management Limited itself has filed a case in court for a review on the matter as per the decision of its board of directors—is against the principles of the rule of law and business etiquette.

The FNCCI mentioned that creating mental pressure in a way that affects industry operations, even when industrialists have not been provided with the clear details of the rent rates they requested, is not appropriate.

Mentioning that it is the primary responsibility of the state to encourage and protect manufacturing industries at a time when the economy is sluggish, the FNCCI stated that it is also the responsibility of the Industrial Districts Management Limited to support and facilitate the uninterrupted operation of industries.

The press release warned that if production is brought to a halt by cutting the power lines of industries and a situation is created where industries are forced to close, it will weaken the morale of domestic investors and discourage both domestic and foreign investments.

The FNCCI has demanded the Ministry of Industry, Commerce and Supplies and the Industrial Districts Management Limited to immediately stop all activities that terrorize industries and disrupt the flow of production.

Furthermore, respecting the legal process, the federation has urged all concerned parties to find a scientific and practical solution to the land rent dispute only through dialogue and consensus, stating that it is ready to provide the necessary facilitation to solve the problem.