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Ban on sand, stone export flayed
KATHMANDU, JAN 12 -
Entrepreneurs on Tuesday criticised the government's decision to ban the export of sand and crushed stones saying that the decision had been taken unilaterally.
They complained that the government did not discuss the matter with the stakeholders before issuing the order. Addressing a press meet, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi said that the government's sudden decision could affect 100,000 workers directly and put 500,000 households in difficulty.
Joshi said that a number of unscrupulous traders might have been mining valuable resources illegally, but the government should not make the entire industry suffer.
He urged the government to conduct a study on the issue before imposing a blanket ban. "There should be a clear provision on the quantity of supply and excavating limit after the study," Joshi said.
On Jan. 4, the parliamentary Natural Resources and Means Committee had directed the coalition government to immediately stop the export of sand and stones to India to prevent environmental degradation
The government ban is likely to affect Rs. 40 billion worth of investment.
Crusher entrepreneurs said that they had already taken large advance payments from Indian importers. "Besides, we are being blamed as being anti-nationalist," they said.
"We have been observing the government's environmental guidelines," said Krishna Sharma, coordinator of the crusher entrepreneurs' ad hoc committee formed to pressure the government on the issue.
According to him, there are 200 crusher industries established across the country to export sand and crushed stones. Similarly, 5,000 tippers and 750 heavy loaders were being used for the purpose.
Of the total investment, 75 percent is of banks and financial institutions. The annual production in the sector is Rs. 60 billion of which Rs. 50 billion worth is exported to India. The industries have been paying Rs. 2.5 billion to the government in taxes.
Krishna Prasad Prasain, advisor to the committee, said that they had been exploiting the stones and sand swept down by the rivers in the Chure-Bhawar to the Tarai plains.
"These abundant mounds of stones and sand in the rivers are collected for crushing as per the government's standards and directives," he said. The recently signed revised Nepal-India treaty allows stone aggregates, boulders, sand and gravel to be exported to India.
Similarly, Nepal's decision to ban the export of sand, boulders and crushed stones is going to affect India's construction industry.
The crusher entrepreneurs admitted that there had been rampant illegal excavation to export boulders and crushed stones to India, which they said the government should stop by being more vigilant.
According to a study, nearly 60,000 tons of sand, stones and boulders are being exported to India daily.
FNCCI speak
Rs. 40 billion investment affected
Industries pay Rs. 2.5 billion in tax
Jobs of 100,000 workers at stake
Entrepreneurs following the government's environmental guidelines
Revised Nepal-India treaty allows stone aggregates, boulders, sand and gravel export
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