29th August 2024, Kathmandu

Industry, Commerce, and Supply Minister Damodar Bhandari has announced a sweeping action plan aimed at overhauling Nepal’s industrial, commercial, and supply sectors.

Industry Minister Damodar Bhandari Unveils Comprehensive Action

The newly unveiled strategy outlines ambitious reforms designed to address key challenges and drive growth in these critical areas.

The action plan, developed after consultations with stakeholders including private sector leaders, academic experts, start-up innovators, consumer rights advocates, former ministers, and ex-secretaries, includes a range of policy and legal reforms. It is divided into short-term and long-term initiatives, with actionable items to be implemented within 3 months and 1 year, respectively.

The immediate focus of the action plan involves policy and legal adjustments within the next 3 months. This includes the formulation and amendment of policies related to industrial and investment promotion, in collaboration with the Prime Minister’s Office, the Ministry of Law, and the Ministry of Finance. Key procedures to be introduced include the Start-up Management and Operation Procedure 2081, the Industrial Village Operation Procedure 2081, and the Indigenous Product Usage Guidelines 2081. Additionally, the process for granting operational permissions for the Panchkhaal and Simra Special Economic Zones will commence.

Infrastructure development is a significant component, with plans to advance the construction of the Damak industrial area under a public-private partnership model. The ministry also aims to finalize four zones of the Lakshmipur industrial area and initiate environmental studies for the Daiji industrial area within the year.

Over the next year, the ministry will draft and propose six new laws to the Council of Ministers. These include the Industrial Policy 2081, Industrial Intellectual Property Bill 2081, and the Mining and Minerals Bill 2081. Additionally, the Industrial Business Regulations 2078 and the Mining and Minerals Regulations 2056 will be prepared.

The plan also includes the establishment of new standards, such as those related to raw material consumption and product production, and the approval of three new standards from the Industrial Investment Promotion Board. Efforts to enhance business incubation and support for start-ups will continue, including the introduction of Business Incubation Center Procedure 2081 and the Startup Enterprise Loan Procedure 2081.

In the petroleum and mining sectors, the action plan outlines the completion of petroleum drilling in Dailekh within 3 months and the preparation of a detailed project report for the Dhowadi Iron Mine within the year. The exploration process for petroleum and various minerals, including limestone and iron, will be advanced in several locations.

Addressing the issue of sick industries, the plan includes a proposal for forming a study group to identify and report on distressed private sector industries. For government-owned sick institutions, a draft implementation procedure for the Nepali Production and Consumption Enhancement Program will be prioritized.

Additionally, the quality assessment of Hume pipes and the approval of 40 Nepalese standards by the Nepal Quality Council are set to take place. The ministry also plans to develop quality assessment methods for industrial items and establish colour standards for gas cylinders.

This comprehensive action plan aims to foster industrial growth, enhance trade, and improve supply chains, marking a significant step towards transforming Nepal’s economic landscape.

Industry Minister Damodar Bhandari Unveils Comprehensive Action