Industrial Districts Management (IDM) Ltd will fix a new rate for the rent of land and buildings inside industrial districts within a week.
Due to growing complications regarding the revision of the rent, IDM has decided to form a seven-member committee with representation of three industrialists to discuss on the revised rent.
“We have already requested the industrialists to forward the names of their representatives to sit for a dialogue with representatives of the management to revise the current rent of land and buildings of industrial districts,” said chairman of IDM Devendra Kumar Yadav.
There are 11 industrial districts in the country and IDM is responsible for their management. “Rent at industrial districts has not been revised for a long time and we will come forward with a revised rate within a week after the committee is formed,” he said.
According to Yadav, infrastructure at industrial districts has become obsolete and needs renovation according to present requirements. “We plan to increase the rate only to modernise current infrastructure for its sustainability,” he said. He also added that industrial districts are the responsibility of IDM and it needs to take care of the infrastructure.
The current rent for one ropani land at the industrial districts is Rs 450 per month, which is quite low and it must be revised for infrastructural development of the industrial districts, says IDM. However, industrialists have blamed IDM for making an arbitrary decision to hike the rent.
According to the Federation of Nepal Cottage and Small Industries, IDM has tried to increase the rate by 850 to 1400 per cent, which is not acceptable. “The decision to increase the rent was arbitrary, hence it is not acceptable,” said general secretary of the federation Bishnu Bahadur Luitel.
He said that it would be difficult for industrialists to pay the rent with such an instant huge hike. The federation has also requested concerned authorities to address the issue of unusual rent hike.