64.4 percent of the industries operating in Nepal depend on generators

The report of the confederation states that 64.4 percent of the industries operating in Nepal are running on generators due to non-supply of electricity. The Confederation of Nepalese Industries (CNI) has released the third issue of the Industrial Status Report after studying the industrial activities of Nepal’s industries.

In the second quarter of the current Fiscal Year 2078-79 BS, detailed statistics of manufacturing industry and service sector industries have been included in the report. The report shows that industries utilized 71% of their total production capacity during the period.

The report shows that the income growth rate of the industry has increased by 27.1 percent in the corresponding period of the current Fiscal Year as compared to the second quarter of the previous Fiscal Year 2077/78. According to the report, the capacity utilization of the business seems to be improving.

During the period under study, manufacturing industries paid an average of 9.4 percent (as against 8.6 percent in the same period last year) and service industries paid an average of 9.1 percent. The study found that manufacturing industries borrowed 43.8 percent of their working capital from banks and financial institutions. It had borrowed 54.1 percent in the corresponding period of the previous year.

Of the participants in the study, 65.5 percent said they were ready for new investments. The study found that 64.4 percent of industries are still using generators due to power supply problems.

The Industrial Status Report of this issue has been prepared focusing on the budget of the Government of Nepal. The report includes budget preparation and implementation process, comparative study, and key suggestions given by the Confederation of Nepalese Industries in the budget for the current fiscal year.

Confederation President Bishnukumar Agrawal said that the report also showed how the private sector was working as a think tank. He said that the confederation was not only giving suggestions but also trying to present a realistic picture of the industry through this report. Chairman Agrawal said that the confederation was working by giving priority to the development of industrial sector and job creation. He informed that additional areas will be included in the study and will be expanded.

Confederation Vice President Birendra Raj Pandey said that the report would provide information about the state of the industry and it would be published every quarter. He says such reports will help boost the credibility of the private sector.

The confederation has prepared such a report for the first time in the absence of periodic statistics of Nepal’s industrial sector. The research cell under the confederation has prepared the report based on the survey with the industries.

The Confederation is confident that this report will help in formulating fact-based policy in Nepal. The Confederation believes that the report will be useful as an important study material for all stakeholders interested in the industry, including policy makers.