Finance Minister Dr. Swarnim Wagle: Government Policy to Hand Over Problematic State-Owned Industries to Private Sector

Kathmandu. Finance Minister Dr. Swarnim Wagle has stated that it is the government's policy to hand over the operation of closed and problematic state-owned industries to the private sector. He clarified this while speaking at the 28th general assembly of the Nepal Economic Journalists Association (SEJON) on Friday. He said that the narrative created that the government itself is running industries is wrong. He informed that the assets and liabilities of state-owned industries will be managed and handed over to the private sector after completing a certain process. According to him, detailed due diligence (DDA) has been completed for seven industries including Gorakhkali Rubber Industry, Hetauda Cement, and Udayapur Cement. He said that based on the evaluation of those bodies, the government land and assets can be managed and given to the private sector for operation. He mentioned that arrangements will be made for the private sector to take over the operation without touching the controversial issues that arose in the past. He emphasized the need to manage the accumulated loans, interest, and other financial liabilities for a long time before handing over the industries to the private sector. Speaking about the misconception that the government is trying to run industries, he said, 'It seems like the government has started running industries. We have only dusted them off. We will take this to a certain point and hand it over to the private sector.' Mentioning that the work is progressing through the Public Investment Management Committee, he added, 'There is a Public Investment Management Committee where Anjan ji is also a member. Under the leadership of the Finance Minister, Gorakhkali, Hetauda Cement, and Udayapur have undergone formal DDA.' Clarifying the ownership of land and the operating model, he said, 'As per the conclusion of the DDA of seven bodies, there might be some additions or subtractions to the government land and ownership, but this is land owned by the Nepali people. We will not touch the big dispute that arose in 2048 BS, and we are creating an environment to give it to the private sector for operational lease.' Speaking about the settlement of old liabilities, he added, 'We have to settle many financial liabilities that have been burdened by loans, interest, and principal for decades. We are working diligently in that direction. This will be handed over to the private sector to operate. Therefore, building a premature narrative is not useful.' Finally, Finance Minister Wagle clarified that the government is focused on creating an environment of fair competition rather than doubting the legitimate profits of the private sector.