Gen-G movement puts private sector in more crisis

Kathmandu. The government has concluded that the private sector is in further crisis due to the Gen-G movement. The conclusion was drawn in a detailed action plan for the reconstruction and rehabilitation prepared by the government after the massive physical damage caused by the agitation on September 7 and 24, 2008.

According to the action plan report, the government has concluded that the weak economy after COVID-19 and the private sector, already affected by external economic pressures, are in further crisis due to the agitation.

Stating that the protection of private property and business is the main responsibility of the state, the government has adopted a policy and action plan to facilitate the reconstruction. As per the action plan, the local levels will be requested to waive the map pass fee for the reconstruction of the damaged structures. It will also ask private businesses to waive property tax for three years on the basis of damages.

Arrangements will be made to pay the insurance amount immediately to the insured structures. If there is a shortage of liquidity in the insurance companies, arrangements will be made to provide short-term loans at concessional interest rates through Nepal Rastra Bank, Employees Provident Fund and Citizen Investment Trust.

The provincial government will be requested to waive the tax levied on the collection of fully damaged private vehicles. Similarly, businesses who have taken working capital loans but have completely lost their assets will be provided the facility to convert the loan into installments.

The period for loan rescheduling and restructuring of businesses affected by the agitation has been extended till Ashad end, 2083. Arrangements will also be made to extend the grace period as per the need for the resumption of business.

The government has made an arrangement to provide loan for five years with only 0.5 percent premium added on the base rate to those willing to take loan at fixed interest rate.

Similarly, relief will be provided to private vehicles, mobiles, laptops and clothes damaged in the premises of government offices during the agitation. Arrangements have been made to provide relief up to 25 percent of the total cost of the project through the District Administration Office on the basis of the police report.

The government has made a reconstruction strategy. According to the strategy, the three tiers of government would manage the expenses related to the maintenance of buildings and structures that suffered minor damages during the agitation from internal resources, the amount allocated in the current fiscal year would be transferred to the bodies concerned and a three÷year strategy for public sector reconstruction has been taken.

As per the government’s strategy, the reconstruction of partially and fully damaged government buildings and structures will be completed within the next two fiscal years by entering the National Project Bank, medium-term expenditure structure and ministry-level budget information system.

Likewise, the government has a policy of mobilizing cost-sharing, coordination, facilitation and support for the reconstruction work. The government plans to reconstruct only the buildings and physical assets required to operate the service.