The private sector's umbrella organization Federation of Industries and Commerce, Pokhara Industry and Commerce Association and Nepal Dairy Industry Association have expressed dissatisfaction with the preparation of DDC.
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After the Dairy Development Corporation (DDC) started preparing to open a milk processing and packaging plant in Pokhara, private sector organizations have protested. The private sector's umbrella organization Federation of Commerce and Industry, Pokhara Chamber of Commerce and Industry and Nepal Dairy Industry Association have expressed dissatisfaction with the preparation of DDC.
Federation has written a letter to Finance Minister Bishnu Prasad Paudel and Gandaki Province Industry and Tourism Minister Mitralal Basyal for support.
It is mentioned in the federation's letter that the decision to restore and operate the factory that was handed over to the private sector two decades ago has made the private sector more worried. The decision to re-operate DDC's milk processing and packaging plant in Pokhara has resulted in the shrinking of billions of dollars of investment in the dairy business from the private sector and thousands of jobs created by it.
The decision to weaken the morale of the private sector should be immediately postponed in the current situation where the economy needs to be strengthened by encouraging the private sector to protect investment and promote more investment. In the letter signed by Gokarnaraj Awasthi, Director General of the Federation, it is requested to support the promotion of dairy and other industrial businesses in that area. It is expected that the Minister who has always been encouraging and supporting the private sector will postpone such decisions as soon as possible and help the private sector to move forward.
The Pokhara Chamber of Commerce and Industry has stated that it is sad that the government has come again when DDC handed over the milk processing and packaging plant in Pokhara to the private sector in 2061.
The dairy industry in Pokhara is meeting the demand of the market here. Competition cannot be prohibited in an open market economy. The association encourages more private investment in the dairy business,'' said the statement issued by the general secretary of the association, Shobha Gautam, "However, it cannot be considered good from any angle that a company that is fully government-owned and subsidized by the government competes with the private sector." It is our understanding that trying to return DDC to Pokhara is against the government's policy.' "At the time of privatisation, there were 4 industries in operation, now there are billions of rupees invested in more than 30 industries, big, medium and small," said the statement issued by Rajkumar Dahal, president of the association, "while DDC itself is in a dilapidated state, there has been a move to destroy the private dairy industry, which occupies 90 percent of the market share." It is not acceptable for the union to try to go to the same area again when DDC has been privatized.'
According to the Ministry of Finance, the loss of DDC till 2080/81 is Rs 2.8 billion. Despite operating at a loss of around 300 million per year, it is being tried to increase investment in land and infrastructure in the interest of a limited group. It is estimated that in 2081/82, the loss of DDC will further increase and the net assets will reach negative 71 crores. It seems selfish to increase investment in land and infrastructure in privatized areas," said Chairman Dahal.
