Nepali industries run at higher capacity in improved electricity supply, less strikes: study

Source: Xinhua| 2017-12-10 22:26:28|Editor: ZD
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KATHMANDU, Dec. 10 (Xinhua) -- Nepali manufacturing industries utilized their capacity better in the last fiscal year 2016-17, thanks to improvement in electricity availability, low number of industrial strikes and reduced supply disruptions, Nepal's central bank said.

The study titled "Economic Activities Study Report 2016-17" released by the Nepal Rastra Bank (NRB) on its website on Saturday, showed that manufacturing industries utilized 57.3 percent of their capacity on average in fiscal year 2016-17 that concluded in mid-July. The NRB has been conducting such study in every six months since last six years.

The study is based on the capacity utilization of manufacturing units producing 23 different types of goods.

The capacity utilization witnessed in the last fiscal year was three-year high. It was 52.7 percent in fiscal year 2014-15 and 48.2 percent in fiscal year 2015-16. The highest capacity utilization that Nepal's manufacturing units saw was 59.3 percent in fiscal 2013-14.

The industrial capacity utilization improved in fiscal 2016-17 compared to previous fiscal year when the Himalayan country had suffered badly from "unofficial trade blockade" from India hindering all economic activities.

"Improved electricity supply and hardly any labour related obstructions contributed to better capacity utilization of industries last fiscal," Hari Neupane, managing director of Ambe Cement, a leading cement manufacturer in Nepal, told Xinhua on Sunday.

He said that industries are now getting uninterrupted power supply at around 18 hours a day which was a day dream until two years ago. Nepal suffered load shedding up to 18 hours a day a few years ago.

Pashmina, livestock feeds, beer, noodles, processed tea and cement are among the industries that witnessed highest capacity utilization last fiscal, according to the report. There has been strong rebound in capacity utilization of industries producing construction materials such as iron steel and cement.

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