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9,000 jobs to be generated at Bhairahawa SEZ
Sep '10
Bhairahawa Special Economic Zone (SEZ) would generate 9,100 jobs over a decade. According to the report 'Creating Competitive SEZ Regime' prepared jointly by the International Finance Corporation (IFC), Foreign Investment Advisory Service (FIAS) and IFC-South Asia Enterprise Development Facility (IFC-SEDF), the SEZ could generate around 13,300 jobs in a progressive case situation and it could employ 20,500 people in the best case situation.

Bhairahawa SEZ, the first of its kind in Nepal, is shortly going to become functional and it is also anticipated to fetch investments worth Rs. 427.86 million in a decade in a conservative case situation, Rs. 625.34 million in a progressive case situation and Rs. 883.94 million in the best case situation over a span of 10 years.

The SEZ will generate employment as well as attracts investment and will earn a revenue for the government. According to the report, the SEZ could generate earnings worth Rs. 4.5 million for the operator in the worst case situation, Rs. 6.65 million in the middle case situation and Rs. 10.25 million in the best case situation for the operator over a decade.

Uday Raj Pandey, the first vice president of Garment Association of Nepal, said that the development of SEZ is commendable but the bill is still pending in the parliament. According to him, only upgrading the SEZ is not sufficient.

Other services like bank finance, lease facility, special labour act are also required for the successful functioning of industries in SEZ. He also added that Bhairahawa SEZ could be slightly more expensive than the Birgunj SEZ which is still under consideration. But the entrepreneurs are hopeful about the benefits which are going to follow when the bill comes into effect.

Construction of SEZ in Bhairahawa and Birgunj shows a positive direction taken towards constructing additional serviced industrial land for overseas and domestic investors in Nepal.

Fibre2fashion News Desk - India

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