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Vol. 20 :: No. 58
THE NATIONAL NEWSMAGAZINE
Aug 24 - Aug 30 ,
2001.

INDUSTRIAL SECURITY


Do Or Die

As the government fails to provide security, industrialists are facing their remaining option: closing down their establishments

By A CORRESPONDENT

It seems the command-and-control system of the Maoist party is on the wane even before the insurgent group sits down for talks with the government. Hundreds of Maoist supporters gathered near Shah Distillery Pvt. Ltd at Khajura in the mid-western district of Banke on Saturday and set the factory on fire.

Balaju industrial area : Security conscious
Balaju industrial area : Security conscious

Ironically, the incident took place a day after the All Nepal Women’s Association (Revolutionary), sister organization of the underground Maoists, called for stopping all its ‘actions’ related to its campaign to ban sales and consumption of alcohol. The association said it had taken the decision as the talks with the government were continuing. The organization had earlier called for a nationwide prohibition on the sales and consumption of alcohol beginning August 18.

According to reports, within hours all the seven buildings owned by Shah Distillery were damaged in the fire that also destroyed machinery, equipment, liquor produced by the distillery and a truck, a jeep, a motorbike and several bicycles. The Maoist broad daylight attack and the failure of the administration to provide security came as a shock to the entire industry and business sector.

"If such conditions and threats prevail, there is no way industries can operate in Nepal," said Ravi Bhakta Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). "The government should take serious step to restore confidence of the business community."

Added Surendra Bir Malakar, vice-president of Nepal Chamber of Commerce, "The government must ensure that such incidents don’t repeat in future."

What has worried the business community is that the Khajura incident is not an isolated one. Suspected Maoist rebels have already targeted joint-venture companies, including Colgate-Palmolive and Surya Tobacco. "What has baffled us is the government’s indifference toward such attacks," said a foreign investor, on condition of anonymity.

As the government is trying to trade peace with the Maoists, the rebels have launched a campaign of extortion and coercion. Director of Shah Distillery, Kedar Lal Shrestha, admitted that he had paid Rs 25,000 as ‘donation’ to the Maoist party as against their demand for Rs 50,000. "Of late, they had not made any demand."

By targeting the alcohol industry in the first phase of their agitation, the rebels seem to be trying to drain out one of the government’s major sources of revenue. This would mean that the government would have fewer resources to fight the rebels. "It exposes the real intention of the rebels though they are talking of holding dialogue with the government," said a critic. "The ‘fund raising’ drive launched by the rebels all over the country also proves the same."

The government, unfortunately, has remained a mute spectator. "The government must tighten security measures keeping in mind long term development of the industries and businesses in the country," said Rajendra Khetan, vice-president of the FNCCI. "Once the business confidence islost, its almost impossible to revive it."

Until now, businessmen appear unwilling to fight the rebels on their own. But they should understand well that their turn would come if they keep silent. They must demand adequate security from the government that has proposed to levy `security tax’ from them in this year’s budget.

Alcohol Industry

—10 billion investment in beverage industry
—Nearly 25,000 workers with 100,000 dependents
—Nearly 30,000 shops and 30,000 food outlets could be affected by a ban
—Direct revenue to the government Rs 7.5 billion, indirect up to Rs 5 billion
—Auxiliary industries like packaging, food stuff business are also suffering
—Agriculture products including maize, sugarcane, barley, rice etc. will suffer}
—Impact on transport, transit, warehouse, local taxes

(Source: Industry estimates)


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