Kathmandu, September 11
Finance Minister Dr Swarnim Wagle has clarified that the government’s policy is to hand over the operation of closed and troubled state-owned enterprises to the private sector.
Addressing the 28th general meeting of the Society of Economic Journalists-Nepal (SEJON) on Friday, Minister Wagle said the narrative that the government was preparing to start operating industries itself was incorrect.
He said the assets and liabilities of state-owned enterprises would be managed and, after completing the required procedures, their operation would be handed over to the private sector.
DDA completed for seven enterprises
Finance Minister Wagle said detailed due diligence assessments (DDAs) had been completed for seven public enterprises, including Gorkharkali Rubber Industry, Hetauda Cement and Udayapur Cement. Based on the assessments, government-owned land and other assets would be managed to clear the way for the private sector to operate the enterprises, he said.
“There is a perception that the government has started running the industries, but we have only dusted them off,” he said. “We will take them to a certain point and hand them over to the private sector. Therefore, the premature narrative being created at this stage is not useful.”
‘Operational lease’ model to avoid disputes
Minister Wagle identified the management of accumulated loans, interest and other financial liabilities as the main challenge before handing the enterprises over to the private sector. He said the government was working diligently to settle liabilities accumulated over decades, including principal, interest and loans.
Recalling major disputes over land ownership during the privatisation process in 1992, he said the government would not touch similarly contentious issues this time.
“There are issues concerning land owned by the Nepali people, and we will not touch contentious matters like in the past,” Wagle said. “However, we are creating an environment to hand over the enterprises to those who come forward saying they can operate them under an operational lease.”
Minister Wagle also clarified that the government was not suspicious of legitimate profits made by the private sector but was focused on creating an environment of fair and healthy competition.
