E-Kantipur

KATHMANDU, SEP 21 -

Registrations of cottage and small industries (CSI) grew 12.35 percent in the last fiscal year. However, the proposed total capital investment by these factories has fallen 3.59 percent.

A total of 14,629 CSIs applied for registration in 2010-11. They include 11,317 registrations at the Department of Cottage and Small Industries (DoCSI) and 3,312 at the Cottage and Small Industry Development Board (CSIDB). These firms have a combined proposed investment of Rs 14.75 billion.

Among the CSIs that have been registered in the last fiscal, one-fourth are based in the Kathmandu Valley, with the largest number 2,873 being registered in Kathmandu district. These firms have a combined investment of more than Rs 4 billion.

DoCSI Director Gokul Prasad Dhital said that the number of registrations increased as a result of the government’s policy to facilitate micro enterprises in rural areas. “However, lack of an investment-friendly environment has kept large investors away,” added Dhital.

The current industrial policy has maintained the provision of providing a tax discount of 40 to 80 percent to CSIs established in remote areas of the country. However, most of the registrations were in urban areas. “Although the government has been making an effort to increase entrepreneurship through development of micro enterprises in remote areas, many such firms are still attracted to urban sectors,” said Dhital.

Meanwhile, the number of CSIs registered in Manang district surged to 24 last year from six in the previous year, according to the CSIDB. Hem Kumar Rai, deputy executive director of the CSIDB, attributed the increase in remote hilly districts like Manang to programmes like “Skill for Employment”. The government in association with the Asian Development Bank has been implementing the programme in Manang, Humla, Achham, Doti, Arghakhanchi, Myagdi, Khotang and Sindhuli since 2006, according to Rai.

Meanwhile, the number of jobs that these firms are expected to provide has increased to 72,918 from 70,561 previously. The CSIs registered last year are expected to provide 12.28 percent of the employment generated to women. The number of jobs has decreased to 8,956 from 9,314 in the previous year

The government has announced a discount of 35 percent in the registration fee to CSIs operated by women in a bid to promote their participation. “However, their participation has not increased despite a rise in participation in capacity building programmes conducted by the government,” said Dhital.

Rai stressed the need to launch more women-based training programmes in remote areas to increase their participation.

Posted on: 2011-09-21 09:31

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