CNI Urges Government Not to Cut Power to Industries Amid Industrial District Rent Dispute
19th June 2026, Kathmandu
The Confederation of Nepalese Industries (CNI) has strongly urged the government and relevant authorities not to disconnect electricity lines to manufacturing plants operating within industrial districts.
CNI Urges Government
The apex body representing Nepalese industries has requested that no punitive actions be taken until the ongoing legal dispute regarding land and facility rent hikes reaches a final judicial resolution.
The Core of the Rent Dispute: Supreme Court’s Verdict
The dispute stems from a rent hike initiated by the Industrial Districts Management Limited (IDML). On March 25, 2025 (Chaitra 12, 2081 BS), the Supreme Court of Nepal issued a verdict stating that the newly increased rental rates enforced by IDML could only be retroactively applied from July 6, 2022 (Asar 22, 2079 BS).
While Nepalese industrialists have formally accepted this ruling and expressed readiness to clear their dues based on this timeline, the situation remains complicated. IDML has filed for a judicial review of the Supreme Court’s decision, meaning the case is still actively under legal scrutiny.
“Since Industrial Districts Management Limited has gone back to the Supreme Court for a review, the dispute has not reached its final legal conclusion,” CNI stated in its official press release. “Therefore, CNI requests that power lines not be cut, and electricity be immediately restored to those factories where connections have already been severed.”
Key Demands Raised by CNI
To ensure industrial stability and protect the manufacturing sector, CNI has highlighted two critical areas requiring immediate attention from the government and utility providers:
1. Extension of the 7-Day Payment Deadline
Following the court’s verdict, authorities issued a strict 7-day ultimatum for factory owners to clear their outstanding rental dues. CNI pointed out that while many industrialists are fully willing to pay, a one-week window is entirely insufficient for businesses to manage the required cash flow. The confederation has formally requested an extension of this payment deadline.
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2. Uninterrupted Power Supply for Economic Stability
CNI emphasized that disconnecting electricity directly hurts production, affects employment, and dampens investor sentiment at a time when the domestic economy requires active stimulation.
Production Continuity: Manufacturing units need uninterrupted power to meet market demands.
Economic Drivers: Productive industries should be incentivized and protected rather than face sudden operational halts.
Facilitation Over Punishment: CNI has urged all state organs to coordinate and facilitate smooth operations instead of enforcing disruptive measures.
Moving Forward: A Call for Stakeholder Collaboration
CNI concluded its statement by appealing to all stakeholders, including the Ministry of Industry, Commerce, and Supplies, IDML, and the Nepal Electricity Authority (NEA), to foster an industry-friendly environment.
The body maintains that safeguarding operational factories is vital to keeping the broader Nepalese economy moving forward while the judiciary finalizes its decree.
For more: CNI Urges Government
