FNCCI urges govt to stop power cuts and arrests that disrupt factories in industrial zones

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the Ministry of Industry, Commerce and Supplies (MoICS), and Industrial Zone Management to halt administrative measures that have disrupted operations at about 700 factories across 10 industrial areas.

In a press release on Thursday, the FNCCI said authorities had prepared to cut electricity lines and to arrest industrialists using administrative force at sites run by Industrial Zone Management. The federation warned that these actions, taken while the land rent dispute is before the courts, undermine the rule of law and business ethics.

The FNCCI noted that Industrial Zone Management has itself filed review petitions in the Supreme Court and the High Court against earlier court decisions. The umbrella organisation of private sector criticised a sudden demand for arrears with a seven-day deadline and the cutting of power to industries.

The federation said those measures have placed unnecessary mental pressure on business owners and obstructed production. “It is the primary responsibility of the state to encourage and protect manufacturing industries to mobilise the currently sluggish economy,” the FNCCI said.

The FNCCI added that Industrial Zone Management should support uninterrupted industrial operation. It warned that halting production and forcing closures would damage investor confidence and deter both domestic and foreign investment.

The FNCCI called on all parties to resolve the land rent dispute through dialogue and consensus while respecting the legal process, and offered to act as a facilitator in negotiations. The federation demanded an immediate end to activities that it said are terrorising industries and disrupting production.