The industrial sector contributes 12.30 percent to the gross domestic product of the Far West Province. But government data shows that the province's industrial sector is going through a period of transition. According to the data of the Directorate of Industry, Commerce and Consumer Protection, more than half of the industries registered across the province are not renewed.

According to the data up to the fiscal year 2081/82, 54,481 industries have been registered in the Far West. This seems to be an encouraging trend of opening industries in the province. But out of the registered ones, 28,454 industries were not renewed. Only the remaining 26,270 industries seem to have been renewed.

288,844 people have found employment in these industries. But since half of the industries are not renewed, the government agencies themselves seem unaware of the status of the jobs created from them. The number of industries that are completely closed down across the province is also large.

Not only in the hilly districts, the rate of industry registration but not renewal is the same in the two districts of the Terai. Kailali, known as the provincial capital, economic, administrative center and industrial hub, has the highest number of industry registrations. According to the Directorate's data for the fiscal year 2081/82, there are 16,567 industries registered here. Out of which 81,446 people have found employment. But out of the registered industries in the entire district, only 8,566 industries have been renewed. During this period, 1,353 industries have been abolished.

After Kailali, the district with the highest number of industry registrations is Kanchanpur. Where 12,082 industries are registered. Out of which 51,036 people are employed. But here too, only 7,368 industries have been renewed.

So far, 25,832 industries have been registered in the 7 hilly districts of the Far West. From which 76,362 people have got employment. However, the situation of renewal seems very pathetic compared to registration. In these districts, only 10,093 industries have been renewed, while 860 industries have been officially cancelled.

Among the hilly districts, Baitadi has the highest number of registered industries. Where 4,946 industries have been registered, and 9,325 people have got employment. However, here too, only 1,673 industries have been renewed, and 155 industries have been cancelled.

Achham, which has the lowest number of registered industries, has registered 2,674 industries, and 8,142 people have got employment. Here too, only 1,120 industries have been renewed. The data shows that 70 industries have been cancelled.

Even though industries are registered in the Far West, the main reason for the decline in the number of renewals is the change in the rules, says Hemant Bahadur Singh, Director of the Directorate of Industry, Commerce and Consumer Protection, Dhangadhi. ‘Earlier, there was a provision to renew every year, but later it was every two or three years, but now there is a rule to renew only after 5 years of industry registration,’ says Director Singh. ‘The industries being renewed now were registered in previous years, due to which there is no uniformity in the number of registrations and renewals.’ He says that many industries may not have come forward for the renewal process due to the lack of time for renewal.

Many ‘paper’ industries
Regarding the increasing trend of industry cancellation, Director Singh says that many industries are not actually registered but only for paper procedures. ‘Most industries are registered only on paper for ‘visa purposes’ to go abroad rather than actually operating. After the purpose of showing income and assets is fulfilled or after the visa is issued, such industries come to be liquidated,' he said.

However, the provincial government has given special concessions to encourage industrialists. The government's policy of waiving 90 percent of the fine for industries that have not renewed for more than 5 years and renewing them by charging only 10 percent has given relief to many.