Source::RSS
RSS
Kathmandu
The Federation of Small and Medium Enterprises Nepal has urged the government to consider exemption in the interest rate for small and medium scale enterprises (SMEs) in the country hit hard by the COVID-19 pandemic.
The recommendation was furnished here today during a meeting with the Industry and Commerce, Labour and Consumer Interest Protection Committee under the House of Representatives about the measures to be taken by the government to reform and revitalize the flagging conditions of SMEs as well as cottage industries.
The Federation recommended providing loan up to Rs 10 million to SMEs that contribute in job creation as per the interest rates of the banks. The Federation also advised incorporating the programme in the government's monetary policy that provides loans to impoverished communities and engages them in the SMEs.
Federation's senior vice-president Umesh Prasad Singh argued that SMEs should also avail as many facilities and privileges like those industries falling in the special economic zone.
The Federation has urged to provide 50 per cent subsidy or not exceeding Rs 500,000 on the cost price of tools and equipment that are used by the enterprises that are based on local raw materials such as Allo, Babiyo, , Lokta and Sisnu and Banana. Furthermore, the Federation has demanded cent per cent customs duty exemption on equipment to set up industries employing innovative technologies for and by youths returning home from foreign countries.
The utilization of skills and capital of youths returning from foreign employment has been underscored. There are a total of 470,681 SMEs registered in Nepal from 1990 to the last fiscal year, among them 352,427 are in operation, according to the Department of Industry. These enterprises have Rs 50 billion investment in total and have provided employment to more than 2.8 million people.
Receiving the recommendation letter of the Federation, Committee's President Bimal Prasad Shreevastav pledged to address the issues of the small and medium scale entrepreneurs after holding consultation with the stakeholder Ministries.
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