Kathmandu, February 1
The recent government decision to scrap National Trading Limited has been taken as an example of how China-assisted ventures are being attacked in order to serve interests of India.
In the meantime, some stakeholders have identified the need to reflect on why most of China-assisted public service utilities failed in the country.
Before the National Trading, the PSUs that were established with the Chinese support but were shut down later were Bhrikuti Paper Factory, Gorakhkali Rubber Udyog, Hetaunda Kapada Udyog, Harisiddhi Tile Karkhana, Himal Cement, Kathmandu-Bhaktapur Trolleybus and Bansbari Leather.
Whereas the government claims that the companies were dissolved as they continued to bleed the state coffers dry and failed to produce estimated returns as while elephants, critics argue that China-assisted utilities have been made an easy prey to the economic liberalisation policy of the Nepali Congress.
Former Finance Secretary Rameshore Khanal says the Nepal government has failed to properly utilise Chinese assistance. He says bad conduct and corruption has forced many projects to shut down even if they were functioning properly.
“At China-assisted projects and companies, no good people were appointed. There were political interference and rampant corruption.”
Experts and stakeholders do not formally accept the public opinion that India has a hand to discourage Chinese investment here. They say the companies were marred by internal problems including political interference.
Former Finance Minister and CPN-UML leader Surendra Pandey says the country’s fiscal policies and assistance policies of donors also have a role in the issue.
