Industrial Enterprises Act, 1992 (IEA)

Objectives :

To development overall economic status of the country, to make arrangements for fostering industrial enterprises in a competitive manner through the increment in the productivity by making the environment of industrial investment more congenial, straightforward and encouraging the act is enacted in 2049.

Major provisions in the act

Constitution of Industrial Promotion Board:

a) The Minister or State Minister for Industries - Chairman

b) The Assistant Minister for Industries -  Member

c) Member (looking after industries), National Planning Commission - Member

d) The Governor, Nepal Rastra Bank - Member

e) The Secretary, Ministry of Industry - Member

f) The Secretary, Ministry of Finance - Member

g) The Secretary, Ministry of Commerce - Member

h) The Secretary, Ministry of Tourism - Member

i) The Director General, Department of Cottage and Small Industries - Member

j) Representative, Federation of Nepalese Chambers of Commerce and Industry - Member

k) Two persons, nominated by Nepal Government, either from among the industry, commerce and tourism sector organizations or from among the persons of high distinction in the same field. - Member

l) The Director General, Department of Industries - Member Secretary

 Functions, Duties and Powers of the Board:

a) To render necessary cooperation in formulating and implementing policies, laws and regulations pertaining to the industrialization of the country.

b) To give guidelines in attaining the objectives of liberal, open and competitive economic policies pursued by the country so as to make the industrial sector competitive.

c) To maintain coordination between the policy level and the implementation level of the industrial policy.

d) To cause to follow the ways and means for the prevention of the environmental pollution by putting more emphasis on the avoidance of effects on the environment and the public health.

e) To make recommendation to Nepal Government for the inclusion of any industry in the classification of industries.

f) To make recommendation to Nepal Government to introduce changes in the Areas mentioned in Annex – 3 by making evaluation thereof from time to time.

g) To give directives to the concerned body after making inquiries into the application submitted by any industry complaining that the industry has not received the facilities and concessions to be made available by the Committee.

h) Other functions, duties and powers of the Board shall be as prescribed.

Constitution of the One-Window Committee:

1) Nepal Government shall, for the purpose of making available the facilities and concessions to be enjoyed by any industry under this Act in time from a single place, constitute a One-Window Committee consisting of the following:

a) The Director-General, Department of Industries Coordinator

b) The Director-General, Department of Customs Members

c) The Director-General, Department of Excise Duty Member

d) The Director-General, Tax Department Member

e) The Director-General, Sales Tax Department Member

f) The Director-General, Department of Commerce Member

g) The Chief Controller, Nepal Rastra Bank Member

h) Representative, Federation of Nepalese Chambers of Commerce and Industry Member

i) One expert in the field of industry and commerce as designated by Government or one representative from the Federation Member

Function, Duties and Powers of the Committee:

a) To make necessary decisions for making available the facilities and concessions to be enjoyed by any industry under this Act.

b) To perform such functions as may be delegated by the Board under its functions, duties and powers.

b) To make recommendations as may be required for making time-bound provisions on making available infrastructural services such as electricity, water, means of telecommunications, land, road, and so on required for the industries.

c) Other functions, duties and powers of the Committee shall be as prescribed.

2) Any decision made by the Committee,

National Priority Industries

1. Agro and Forestry-based Industries.

2. Engineering Industry (Producing Agricultural and Industrial Machine).

3. Industry Manufacturing Fuel Saving or Pollution Control Devices.

4. Solid Waste Processing Industry.

5. Road, Bridge, Tunnel, Ropeway and Flying Bridge Constructing and Operating Industry, and Trolley Bus and Tram Manufacturing and Operating Industry.

6. Hospital and Nursing Home (Only outside the Kathmandu Valley).

7. Industries Producing Ayurvedic, Homeopathic and other Traditional Medicine, and Industries Producing Crutch, Seat Belt, Wheel Chair, Stretcher and Stick and so on to be used in aid of the disabled and orthopedic.

8. Cold Storage installed for the storage of Fruits and Vegetables.