Industries in Hetauda Fail to Operate in Full Capacity   

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Industries in Hetauda Fail to Operate in Full Capacity   

April 12: The Hetauda industrial estate is currently grappling with operational challenges, primarily stemming from a decline in the sale of manufactured goods, the state-owned RSS reported 
According to RSS, factors such as a scarcity of raw materials, increased costs, and high interest rates imposed by banks have constrained production levels, with many industries operating at only 40 percent capacity. Currently, out of 147 established industries, 115 are operational, but their productivity is significantly reduced.
The Industrial Area Management Office told RSS that these industries, which once operated round-the-clock in three shifts, are now restricted to just one shift. Consequently, there has been a wave of layoffs as the industries grapple with diminished capacity.
Bhojraj Biradi, the head of the office, attributes this downturn to the economic slowdown following the COVID-19 pandemic. As a result, steps are being taken to terminate contracts with approximately two dozen dormant industries. However, legal challenges have emerged, with some industries contesting the contract cancellations in the District Court.
Meanwhile, industrialists lament the dire state of affairs, citing difficulties in meeting rental obligations amid dismal industry conditions, RSS added. The Chamber of Commerce and Industry officials echo these concerns, underscoring the fragility of the industrial sector due to high production costs, unsold inventory, and the economic slowdown.

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