First Business News Portal in English from Nepal
KATHMANDU: The capacity utilisation of Nepali industries has increased as the impact of COVID-19 is declining.
According to an Industrial Status Report made public by the Confederation of Nepalese Industries (CNI), the capacity utilisation of the industry has significantly improved in the current fiscal year 2021/22 as compared to the last quarter of the last fiscal year 2020/21.
After studying the activities of major industrial sectors, the CNI has released the second edition of ‘Industrial Status Report’.
According to the report, Nepali industries have utilised 70.5 per cent of their total capacity in the first quarter of the current fiscal year. The capacity utilisation of the industries was 64.8 per cent in the last quarter of last fiscal year.
In the meantime, the income of manufacturing industries has also improved during the review period.
The income growth rate of the industry is 41.15 in the first quarter of the current fiscal year 2021/22 as compared to the first quarter of the previous fiscal year 2020/21, the report said.
The study found that 61.8 per cent of industries are still operating generators for energy which increased industrial costs by 5 per cent monthly.
During the period of study, agro-based industries paid interest an average of 8.7 per cent, energy sector industries an average of 7.7 per cent, manufacturing industries an average of 8.7 per cent and service sector industries an average of 8.2 per cent. This rate of interest paid is more than the last quarter of the last fiscal year.
Similarly, manufacturing industries borrowed 54.1 per cent of their working capital from banks and financial institutions, according to the study.
Of those surveyed, 61.7 per cent said they were ready for new investments. Such industrialists were 83 per cent in the last quarter of last year.
Of the industries participating in the survey, 61.7 per cent said that they were ready for new investments. Such industrialists were 83 per cent in the last quarter of last fiscal year.
Secretary at the Ministry of Industry, Commerce and Supplies Arjun Prasad Pokharel unveiled the second issue of the quarterly report made public by the CNI Friday.
The detailed data has been included in the report on the condition of manufacturing industry, service sector, agriculture and energy sector industries.
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