India has offered help to Nepal in its plan to establish the Special Economic Zones (SEZ) for giving a boost to the industrial base of the neighbouring country.
The offer was made by Commerce and Industry Minister Kamal Nath at his meeting with Commerce and Supplies Minister of Nepal Rajendra Mahato here yesterday.
Nepal is setting up four SEZs as the new Maoists-led coalition government is embarking on new policies to seek investment,including the foreign direct investment.
In his address to the leaders of the Indian industry, Nepal Prime Minister Pushpa Kamal Dahal 'Prachanda' had said his government would introduce reforms in the industrial policy and "SEZ will be established to promote the country's exports".
A business delegation accompanying 'Prachanda' complained that a surge in Indian SEZs have eroded the preferences for manufacturing goods in Nepal. This went against the spirit of the 1996 treaty between the two countries,they said.
Over 87 SEZs are operational in India while 250 tax free enclaves have been notified and are under different stages of implementation.
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They said imposition of export duty by India on items like steel has affected the Nepalese economy which depends considerably on Indian imports.
The Nepalese delegation also lodged its complaint over the Special Additional Duty imposed by India on imports from Nepal.
The bilateral trade of $2 billion is highly skewed in favour of India, which the new Nepalese Government wants to correct.