Saroj Sah at his factory in Dhanusha. Photo: Himal Press
JANAKPURDHAM: A detergent factory owned by Saroj Sah in Janakpurdham Sub-metropolitan City-1 has run into financial problems.
The small-scale factory, which was performing very well before the COVID-19 pandemic with more than 12 full-time workers, is now struggling to remain afloat.
“Demands started falling after the pandemic,” Sah said. “I scaled down production as demand was not picking up.”
Sah currently employs five people in his factory.
“Consumers prefer products brought from across the border. Local products are not becoming competitive as we are not getting any support from the provincial government and local units alike,” Sah added. “Since we are not finding buyers for our products, it is becoming difficult for us to service bank loans.”
Sah is not the only one. Numerous cottage and small industries, which have run into trouble, are expecting support and cooperation from the provincial government. These ventures haven’t been able to access concessional loans. Likewise, industrialists complain that they have not received any support in the import of raw materials and marketing of their products.
Minister for Industry, Commerce, and Tourism, Sunita Yadav, said that the provincial government was taking necessary initiatives to help small-scale industries in the province. “The provincial government has taken a policy of creating jobs in villages and helping the local people in income generation,” she added.
According to Yadav, 71 cottage and small-scale industries closed down in Dhanusha district in the fiscal year 2022/23, rendering more than 5,000 local people jobless. Twenty-eight of these industries were micro, 42 small-scale, and one was a cottage industry.
A total of 536 small-scale, 551 micro, and one cottage industries are currently in operation in Dhanusha district. The combined capital of these industries is Rs 3.55 billion.
Minister Yadav said the provincial government has taken a policy of promoting these industries that utilize locally available raw materials.
Plans underway to build 13 industrial villages
The provincial government is targeting to open industrial villages at 13 locations in the province in coordination with the federal government, according to Minister Yadav.
“The rate of outmigration is comparatively higher in Madhesh Province. We are planning to open industrial villages to check this trend by creating employment opportunities,” Yadav said.
She added that the provincial government was preparing to bring a new industrial policy to facilitate the registration of industries and provide concessional loans, among other facilities.
Jitendra Mahaseth, president of Janakpur Chamber of Commerce and Industries, welcomed the plan to open industrial villages. “Plans brought by previous governments have been limited to paper. If the provincial government is making plans in earnest, we welcome it. The private sector is ready to work with the government,” he added.
