KATHMANDU: As many as 4,00,000 domestic and small enterprises across the country have been on the verge of displacement following the lockdown that started on March 24 to contain Covid-19 pandemic.
These industries are likely to be shutdown due to low operating capital, production dependent on human labor and shrinking markets.
According to the Industry and Business Council under the Federation of Nepali Chambers of Commerce and Industry (FNCCI), 90 percent of the operators have fled due to non-operation of these enterprises.
Council Chairman Kishor Kumar Pradhan says, “Around 90 percent of the industries with working capital of up to Rs 2 million have been shut down.”
According to him, in the last five months, small, home-based, micro-service, food production and innovation industries and businesses have been in crisis.
According to the FNJ study, most of the small and cottage industries have been shut down, the capacity of medium scale industries has dropped to 30 percent and large scale industries are on the verge of crisis.
The Department of Industry has stated that the situation of small, cottage and small scale industries is critical even though the exact details of the impact of COVID-19 have not been revealed.
Rita Singh, President of the Federation of Women Entrepreneurs of Nepal, said that the industry could not pay the rent and bank interest. According to her, 90 percent of the industries are facing such problems.
“Even though some of the city’s industries have refined themselves according to the times, almost all the enterprises outside the valley are facing problems,” she says.
As many as 1,177 large, 1,861 medium and 5,235 small scale industries were registered in the Department of Industry. These industries have an operating capital of more than Rs. 100 million, according to the department.
According to Economic Census 2075, there are currently 923,356 industries and business establishments in operation across the country. Out of them, more than 4,00,000 are domestic and small scale industries.
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