Laxmi Capital News
Industries flourish in Birgunj industrial corridor

After the ups and downs and uncertainties that lasted fora decade, there are indications that the Birgunj Industrial Corridor hasfinally started to flourish. Within the past two years, several industries havebeen established in this corridor with an investment of billions ofrupees. 

Few years ago, many industrialists operating in thiscorridor had left the country by shutting down their industries, when theMadhesh movement had made it difficult for them to run business in the country.The corridor covers areas of Parsa and Bara districts.

But now, signifying positive change in the businessenvironment, several new industries are being established in this corridor. Inthe past two years, new industries of iron rod, galvanized corrugated sheets,animal feed, biscuits and other edible stuffs have been established here. 

Recently, Keyal group has brought Narayani StripsIndustries into operation that produces iron rods. Similarly, Subha ShreeJagadamba Cement has increased its investment and production here. The factoryis producing around 80,000 sacks of cement a day now, which was previouslylimited to 45,000 sacks. 

A group of industrialists including the Jagadamba grouphas started brick industry inside the corridor. Meanwhile, five industriesamong six new industries of Nimbus Industrial Group have been established here.Chairman of the group, Jagdish Agrawal, has said that an edible oil refineryand a masyaura factory have already been started at Jagaranathpur and a pulseindustry is in the pipeline. Similarly, the multinational company Britannia hasalso started work to establish its biscuit factory in the corridor. 

“Britannia is establishing a factory here investing Rsone billion,” said industrialist Ashok Baidya, who is bringing Britannia inNepal. “It is a good thing that such renowned brand is coming to the countrywith big investment.” 

Likewise, Samar Pharmaceuticals was established last yearwhile Suprim Pharmaceuticals has started operation from this year in thecorridor. Moreover, the Patanjali brand from India has started operation atParsauni. 

“Despite some negative publicity about Birgunj, this is asuitable place for any kind of industry,” said Baidya. He further added thatthe government has started to create investment-friendly environment in thecountry and has started taking investment issues seriously.

Geographical position, easy access to supply andtransportation of raw materials are some of the reasons behind Birgunj beingsuitable for industries, said industrial Pradip Kumar Kedia. 
“This place especially has good potential for production of constructionmaterials,” Kedia said. Industries of construction materials, includingJagadamba Steels, Narayani Rolling Mills, Hama Iron, Ashoka Steel, BandanaRolling, Sakha Steel, Himal, Shalimar, Jagashakti along with other severalsmall and big industries of rod, pipe and iron are operating in this corridor.Currently there are 13 cement industries in this corridor.

The recently inaugurated Integrated Check Post (ICP),dry-port and proximity with the sea port are some of the major advantages forthe industries of this corridor. Moreover, the under constructionKathmandu-Tarai fast track, special economic zone (SEZ) and secondinternational airport are other attractive factors for industries. Besides,Birgunj is getting a six-lane road within one year, which also makestransportation easier. 

Since there are high prospects for new investment in thisarea, the government should bring strict custom policies, said Jagdish Agrawal,chairman of Nimbus group.     

Source : My Republica, 6th May 2018

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