The government has announced a comprehensive revival package for entrepreneurs affected by the devastating Bhotekoshi floods, offering customs duty exemptions, concessional loans, and loan restructuring facilities.
The measures were endorsed by the Cabinet on Thursday following a proposal from the Ministry of Finance and are aimed at easing the financial burden on affected businesses while supporting their recovery and revival.
Under the package, commercial and transport vehicles that were swept away or damaged beyond repair by the floods will have their registrations cancelled. Entrepreneurs importing replacement vehicles will receive a full customs duty exemption.
Similar concessions will apply to plants, machinery, equipment, and other industrial assets destroyed by the disaster. Replacement assets can be imported with customs duty exemptions, provided their value does not exceed that of the damaged equipment.
The government has also introduced special arrangements for goods that had already cleared customs at the Rasuwa Customs Office but were destroyed by the floods before reaching their destinations. Importers bringing in similar goods within six months will be allowed to adjust the customs duties they had previously paid.
The relief package also includes a one-year concessional loan facility for flood-affected borrowers. Interest rates will be capped at the bank’s base rate plus 0.5 percentage points, or the existing premium rate, whichever is lower.
Affected borrowers will also be allowed to restructure or reschedule their loans once, extending the repayment period for both principal and interest. Banks will consider the nature of the business, the extent of the damage, and insurance claims when rescheduling loans linked to goods destroyed in the floods.
In addition, banks will be authorized to provide additional financing to help revive industries, sustain businesses, and protect employment. Entrepreneurs whose vehicles, machinery, and equipment were damaged will also be eligible for concessional loans to purchase replacements.
The government said the relief measures will come into effect after Nepal Rastra Bank issues the necessary directives and guidelines for their implementation.
The August 26 Bhotekoshi floods caused extensive damage to transport networks, industrial assets, machinery, vehicles, and trade-related goods. The new package is expected to provide immediate financial relief while supporting the long-term recovery of businesses affected by the disaster.
