Tenants of industrial estates protest rent hike

Tenants of the country´s 11 industrial estates have launched series of protest programs against the government´s unilateral decision to increase rent of land and buildings inside the industrial estates.
The businessmen operating factories inside industrial estates went on warpath after Industrial Estate Management Limited (IEML) - the authority overseeing the management of industrial estates - increased the rent going against the agreement that it reached with Federation of Industries in Nepal Industrial Estates (FINIE) in January.
FINIE is the umbrella organization of more than 600 factories operating inside industrial estates.
IEML revised rent for spaces and buildings inside industrial estates effective from mid-April.
“We announced the protest after IEML went against the agreement,” Shailendra Lal Pradhan, president of FINIE, said. “We want IEML to stick to the agreement.”
Issuing a press release, FINIE has issued ultimatum to IEML to correct its decisions by Sunday. "We have asked the government to implement the understanding reached between FINIE and IEML in January," Pradhan said. "If the government didn´t address our demands, we will launch protest programs from May 6.”
According to the release, the FINIE has devised protest programs like submitting a memorandum to Minister for Industry and Secretary at the Ministry of Industry, urging all the political parties for their solidarity, and stop paying rent to IEML.
Meanwhile, Devendra Kumar Yadav, chairman of IEML, said the state-owned agency has not gone against the spirit of the agreement. “We have revised the rate as per the understanding reached with the tenants,” he added.
Private sector has made investment of more than Rs 13 billion in industrial estates. Factories in the industrial estates employ around 25,000 people, according to the release.