KATHMANDU, SEP 15 -
The government has planned to resume issuing licences for new liquor factories which have been on hold since 2001. The Cabinet has also stated that the government could issue permits to new investors to make the industry more systematic and organised amid concerns over rising imports and proliferation of foreign products in the market.
Following the Cabinet’s nod, the Ministry of Industry (MoI) and the Department of Industry (DoI) have begun internal preparations to allow new players in the liquor industry. The matter was also discussed at the recent meeting of the Industrial Promotion Board (IPB) which is chaired by Industry Minister Anil Jha.
“As per the decision of the IPB, the ministry has formed a committee to study the overall status of the liquor industry, its market and the laws necessary to regulate it,” said Chabindra Parajuli, co-spokesperson of the MoI.
The committee, which is led by the director of the DoI, will recommend pre-conditions for the issuance of new licences. The seven-member body has been assigned to submit its input within two weeks. The MoI had proposed to the Cabinet to issue new licenses some five months ago.
“As alcoholic products are in high demand and the country is spending millions of rupees on imports, it’s high time the government relaxed restrictions on issuing new permits and allowed existing companies to expand their output,” said Dhruba Lal Rajbanshi, director general of the DoI.
According to the Nepal Liquor Manufacturers’ Association (NELMA), the country imports liquor products worth Rs 4 billion annually while domestic production is worth Rs 11.70 billion. There are 15 big and medium-sized liquor factories registered at the DoI, 10 of which are in operation. In October 2001, the Cabinet decided to halt issuing licenses to new liquor manufacturers following strong pressure from the UCPN (Maoist). Since then, the government has also forbidden existing factories to increase output. The government has also been maintaining a close watch on homemade alcohol.
Parajuli said that the government would be opening another avenue for revenue collection by allowing interested investors to establish liquor factories. “Licenses will be issued soon after the committee submits its report,” he added.
MoI officials said it was necessary to reopen issuance of licenses to control rampant illegal production. “Reopening license issuance will allow illegal producers to become legitimate which will ensure quality and generate revenue for the government,” Parajuli.
Source: http://www.ekantipur.com/2012/09/15/business/ban-on-new-liquor-factories-to-go/360272/
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