The government also plans to appoint a chief personnel solely to cater to the rural businesses and cottage industries
The People’s Democratic Party (PDP) government plans to find ways to provide loans to small and medium industries in line with the Economic Stimulus Plan (ESP).
Economic Affairs Minister Norbu Wangchuk said the ministry’s department of small and cottage industry is working on it. He said the financial issue is a consistent constraint small and cottage industry have been facing.
Lyonpo said, “Firstly, we have to convince the financial institutions because financial institutions if you know would give out credits which are absolutely risk free.”
He also said that in the interim, “This is going to take some time to change the norms of providing credit but we are looking for the projects and finances of which one is the stimulus plan.”
Lyonpo Norbu also shared that policies, regulations and incentives are all in place. “Now it is time to have policies implemented on ground. So we are developing in conjunction with Bhutan Development Bank Limited (BDBL) and our department of small scale industries will see how we could come up with the plans.”
Prime Minister Tshering Tobgay said the government will allocate substantial amount of fund from the stimulus plan, to stimulate the rural business especially with the small business like cottage industries throughout the country.
He said, “ The previous government had tried to do a lot to promote rural business but we believe that enough work hasn’t been done.”
Lyonchhen also said the government is looking at appointing a chief who shall cater solely to the cottage industries and rural businesses. “This person is going to have access to all ministers, agencies and banks. This chief is going to be one stop shop for rural business,” he said. “It is this person job to actively promote cottage industries throughout the country.”
Lyonchhen also said that he is in touch with Bhutan Chamber of Commerce and Industry (BCCI) and they have proposed three products per dzongkhag. Lyonchhen added the goal is to give good push towards developing cottage industry.