INDUSTRIAL ENTERPRISES Act 2076 - PDF

Industrial Enterprises Act, 2076: Unofficial Translation for students purpose only
Chapter 1:
PRELIMINARY
1.1 PREAMBLE, SHORT TITLE AND COMMENCEMENT (Section 1)
Purpose (Objectives) of the • To increase national productivity and make job opportunities by fostering industrial
Industrial Enterprises Act, enterprises making the environment of industrial investment more congenial, competitive,
2076 straightforward and encouraging.
• To make optimum utilization of natural, physical or human resources available in the
country.
• To make progressive economy by encouraging more imports and exports through the
increment in the productivity.
• To make available effective protection to industries by ensuring that such protection helps
in the appropriate utilization of available resources.
1.2 DEFINITIONS PROVIDED IN THE INDUSTRIAL ENTERPRISES ACT (Section 2)
S. No. Term Definition

(a) 'Industry' “Industry” means any industry as referred to in Section 17.
(b) 'Body for registration “Body for registration of industries” means the department and it also includes province level
of industries' department or office looking after industry.
Industrial Enterprises Regulation, 2076
• Cottage Industries and Department of cottage and small
• Small Industries industries
• Medium Industries based on national Department of Industries
investment,
• Large Industries based on national
investment and
• Industries based on Foreign Investment
• Industries with national investment Special Economic Zones Authority
established in special economic zones established as per SEZ Act, 2073
(c) 'One Point Service 'One Point Service Centre' means one point service center as referred in section 37.
Center'
(d) 'Transactions' 'Transactions' means the manufacturing or distribution of goods or services as per the
objectives of the industry and this term also includes other transactions related to such
manufacture or services.
(e) 'Fund' 'Fund' means fund as referred in section 51.
(f) 'Cottage Industry' “Cottage Industry” means any industry as referred to in Section 17 (1) (b).
(g) 'Large Industry' “Large Industry” means any industry as referred to in Section 17 (1) (e).
(h) 'Prescribed' or 'As “Prescribed” or “As prescribed” means prescribed or as prescribed in rules made under this
Prescribed' Act or in order issued by GoN by notification published in the Nepal Gazette.
(i) 'Export industry' “Export Industry” means any industry which exports more than 40% of its products.
(j) 'Board' “Board” means the Industrial and Investment Promotion Board constituted under Section 20.
(k) 'Intellectual Property “Intellectual Property Rights” means any patents, trademarks. Designs, service marks,
Rights' business secrecy, etc. and it also includes copyrights as defined in the prevailing laws.
(l) 'Medium Industry' “Medium Industry” means any industry as referred to in Section 17 (1) (d).
(m) 'Ministry' “Ministry” means Ministry of Nepal looking into Industry.
(n) 'NPIs' “National Priority Industry” means any industry as referred to in Section 19.
(o) 'Micro Industry' “Micro Industry” means any industry as referred to in Section 17 (1) (a).
(p) 'Board' “Board” means the Industrial Promotion Board constituted under Section 18.
(q) 'Small Industry' “Small Industry” means any industry as referred to in Section 17 (1) (c).
(r) 'Permanent Capital' “Permanent Capital” means the assets referred to in section 18.
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Chapter 2:
PROVISIONS FOR REGISTRATION OF INDUSTRIES
2.1 INDUSTRIES TO BE REGISTERED (Section 3)
Mandatory Registration (1) No person by himself or cause to incorporate or operate any industries without registration
under this act.
Previously registered Notwithstanding anything contained in sub section (1), industries registered under previous
industries no re-register (2) industries enterprises act need not register again under this act.
Section industry (3) Any industry incorporated as section industry prior to commencement of this act, shall, within
prescribed time, be registered as a separate industry under this act.
Unit industry (4) Any industry desirous to make their manufacture or locate any part in a place different than
the place where the industry was located or any section industry not desiring to register as
separate industry pursuant to sub section (3), may, incorporate and operate such part or section
as unit industry.
Unit industry = new industry While registering any industry as unit industry, all the procedures required for incorporation
(5) of new industry shall be followed, except for registration.
Records of unit industry to be The unit industry shall prepare and maintain records of their manufactures, transactions and
sent to main industry (6) all other records and shall be sent to main/head industry also.
2.2 APPLICATION FOR REGISTRATION (Section 4)
Application to body for Any person, firm or company desirous to establish following industry as per this act shall
registration of industries (1) make an application to the department for registration on of industries in the prescribed form
along with the prescribed documents:
i. Industries requiring permission
ii. Industries to be incorporated with foreign investment
iii. Industries related with matters specified in Schedule-5 of Constitution of Nepal
i.e following industries
a) Relating to defense and military
b) Protection of national unity and territorial integrity
c) Relating to national security
d) Arms and ammunitions factories and production thereof
e) Central Police, Armed Police Force, national intelligence and investigation,
peace, security
f) Central planning, central bank, finance policies, monetary and banking,
monetary policies, foreign grants, aid and loans
g) Foreign and diplomatic affairs, international relations and United Nations
related matters
h) International treaties or agreements, extradition, mutual legal assistance and
international borders, international boundary rivers
i) Telecommunications, allocation of radio frequency, radio, television and
postal matters
j) Federal civil service, judicial service and other government services
k) Policies relating to conservation and multiple uses of water resources
l) Inland and inter-State electricity transmission lines
m) Central statistics (national and international standards and quality)
n) Central level large electricity, irrigation and other projects
o) Central universities, central level academies, universities standards and
regulation, central libraries
p) Health policies, health services, health standards, quality and monitoring,
national or specialized service providing hospitals, traditional treatment
services and communicable disease control
q) Federal Parliament, Federal Executive, Local Level related affairs, special
structure
r) International trade, exchange, port, quarantine

s) Civil aviation, international airports

t) National transportation policies, management of railways and national
highways
u) Laws relating to the Supreme Court, High Courts, District Courts and
administration of justice
v) Citizenship, passport, visa, immigration
w) Atomic energy, air space and astronomy
x) Intellectual property (including patents, designs, trademarks and
copyrights)
y) Measurement
z) Mines excavation
aa) National and international environment management, national parks,
wildlife reserves and wetlands, national forest policies, carbon services
bb) Insurance policies, securities, cooperatives regulation
cc) Land use policies, human settlement development policies, tourism
policies, environment adaptation
dd) Criminal and civil laws making
ee) Security printing
ff) Social security and poverty alleviation
gg) Constitutional Bodies, commissions of national importance
hh) Sites of archaeological importance and ancient monuments
iv. Industries with work places in two or more provinces
v. Service relating to education consultancy under diplomatic mission
The application shall be accompanied by following documents along with fees:
a) Copy of Citizenship or Passport for foreign nationals,
b) Registration certificate of firm or company,
c) Details of location with map of the place industry is to be set up,
d) Power of attorney of authorized representative if elected for application,
e) Copy of approval of foreign investment, if any,
f) Partnership deed, if industry is to be established under partnership,
g) Recommendation of VDC or municipality in which industry is to be established,
h) Other documents, as prescribed
All procedures at concerned All the activities relating to registration, renewal and monitoring of the industries other than
provincial government (2) the industries specified in sub section (1) shall be performed in the concerned provincial
government.
However, permission shall be obtained for those industries which requires permission.
All procedures at department Notwithstanding anything mentioned in sub section (2), until concerned provincial
till provincial laws are made government do not make legal provisions for all the activities relating to registration, renewal
(3) and monitoring of the industries, it shall be performed by the body for registration of
industries/ department.
Atomic energy, radio-active Notwithstanding anything mentioned in sub section (1) or (2), industries producing atomic
materials and uranium by GoN energy, radio-active materials and uranium shall be established and operated by the
only (4) Government of Nepal only.
E-registration (5) Certification of the documents relating to registration by electronic signature shall also be
valid and such documents can also be presented online in electronic form.
Extra documents, if asked for, On examination of application, if the body for registration of industries thinks that the
to be submitted within 90 days submitted documents and information are inadequate, it may call for extra information and
(6) documents and it shall be the duty of the concerned applicant to submit them within 90 days.
Grounds of rejection of The body for registration of industries, may reject the application for registration after
application (7) examination, on being satisfied that all the prescribed documents and information have not
been received or all the procedures for registration as specified in this act or bye laws under
this act have not been complied with and information, along with reasons, about such rejection
shall be provided to the applicant within five days.
Make application to concerned Any person, firm or company desirous to establish any other industries, otherwise than
province level for other industries mentioned in sub section (1), as per this act shall make an application to the body
industries (8) for registration of industries of concerned province in the prescribed form along with the
documents prescribed by the concerned provincial laws.

2.3 GRANT REGISTRATION CERTIFICATE TO THE INDUSTRIES (Section 5)
Registration Certificate to be The body for registration of industries, after examination, on being satisfied that all the
provided within 5 days (1) prescribed documents and information have been received and all the procedures for
registration as specified in this act or bye laws under this act have been complied with, within
five days from the date of application for registration, shall register such industry and issue
an industry registration certificate to the applicant as prescribed.
Contents of Registration The registration certificate shall inter alia contain the following particulars:
Certificate (2) • Date of registration
• Duration within which the industry need to commence its operation or transactions
• Terms and conditions to be fulfilled
• Other conditions, if any as specific for specific type of industries
Micro industries & Cottage Micro industries and cottage industries may apply for registration within 1 year from the date
Industries (3) of operation.
2.4 APPEAL (Section 6)
Appeal to Ministry within 30 If the body for registration of industries rejects the registration of industries, any person not
days (1) satisfied with the decision may appeal, within 30 days as follows:
Appeal to Rejection done by
Ministry Department
Ministry looking after industries in the Body for registration of industries of a
concerned province province
Decide within 30 days (2) On receipt of application of appeal, after examination, decision shall be made by the
concerned ministry within thirty days of receipt of application.
Other provisions (3) Other provisions relating to appeal shall be as prescribed.
2.5 MITIGATION OF NEGATIVE EFFECT ON ENVIREONMENT (Section 7)
EIA or IEE (1) If any industries registered as per section 5 is requited to conduct Environment Impact
Assessment (EIA) test or Initial Environment Examination (IEE), it shall initiate
incorporation, operation, commercial production and transactions only after approval of such
reports.
Capital increment, efficiency Notwithstanding anything mentioned in sub section (1), if as per prevailing laws, Environment
increment, objectives addition, Impact Assessment (EIA) test or Initial Environment Examination (IEE) is required to be done
objectives change or relocation before capital increment, efficiency increment, objectives addition, objectives change or
(2) relocation of such industries, it shall be the duty of such concerned industries to conduct such
tests.
Pollution control (3) Responsibility of mitigation of negative effect on environment shall be on the industry itself.
Ramesh Kumar Singh Vs. कुनै पनन उद्योग वा व्यावसानयक प्रनिष्ठानले आफ्नो उद्योग कारखाना वा व्यावसानयक प्रनिष्ठान
Ramagya Shah Kalwar
सञ्चालन गर्ाा वािावरणमा प्रनिकूल प्रभाव नहुने गरी उद्योग सञ्चालन गनप ुा ने । उद्योग सञ्चालनबाट
वािावरणमा पने प्रनिकूल प्रभाव वा प्रर्ष
ू ण न्यून गने उपायहरू वास्िववक रुपमा अवलम्बन गनप ुा ने र
यसरी प्रर्ष
ू ण ननयन्रण वा वािावरणमा पने प्रनिकूल प्रभाव न्यूनीकरणको लागग उद्योगले अपनाएको
पद्धनि वा उपकरणमा लागेको खचामा कर छूट पाउने समेिका व्यवस्था कानूनले गरे को स्स्थनिमा
स्थावपि उद्योगको कारणले उद्योग अवस्स्थि क्षेरमा वािावरण प्रर्ष
ू ण हुन नदर्नु उद्योगको प्रमुख
किाव्य िथा र्ानयत्वमा पने ।
Jasmuddin Mansur Vs कुनै पनन उद्योगको स्थापनाबाट वािावरण र आमजनिाको स्वास््यमा र आवासीय क्षेरमा केही न केही
Ministry of Industries
अनुकूल एवं प्रनिकूल प्रभाव पने भए पनन र्े शको आगथाक ववकास एवं आमजनिाको आवश्यकिाहरू पूरा
गने प्रयोजनको लागग सेवामूलक उद्योगहरूको योगर्ान र महत्वलाई न्यून आंकलन गना नसककने ।
कानूनमा व्यवस्था भएबमोस्जम वािावरणीय पक्ष अध्ययन गरी ियार भएको प्रनिवेर्न समेिको आधारमा

उद्योग सञ्चालनको स्वीकृनि प्रर्ान गररएको र उद्योगले प्रनिकूल प्रभाव पारे को कुरा वस्िग
ु ि रुपमा
पुस्ष्ट समेि हुन नसकेको अवस्थामा मनोगि कुराको आधारमा मार वािावरण, आमजनिाको स्वास््य
एवं आवासीय क्षेरमा प्रनिकूल प्रभाव परे को र सो कारणले उद्योग बन्र् गनप
ुा नेसम्मको अवस्था उत्पन्न
भएको भनी मान्न नसककने ।
Madhyamanchan Bone उद्योग र्िाा हुुँर्ा पालना गने गरी स्वीकार गरे का सिाहरू उद्योग सञ्चालनका क्रममा पुरा नगरे कोमा
Industries Vs. Ministry of
सो सिा परु ा गना पटकपटक उद्योगलाई पराचार गरे को र्े खखयो । उद्योगका िर्ाबाट ललखखिरूपमा
Industries
वािावरण संरक्षण गने भनी भएको सिा सम्झौिा पुरा गने भनी प्रनिबद्धिा जाहे र गरे पनन सो प्रनिबद्धिा
कायाान्वयन भएको भने र्े खखएन । स्वच्छ र स्वास््य वािावरणमा जीवन स्जउने हक प्रत्येक व्यस्तिको
हुन्छ । ननवेर्कको उद्योग खोल्ने, व्यापार व्यवसाय गरी आगथाक उन्ननि गना पाउने हक ननरपेक्ष होइन
। ननजको प्रगनिको मूल्य त्यस क्षेरमा बस्ने सबै जनिाले आफ्नो स्वास््य बबगारी चकु ाउनु पने होइन
। ननवेर्कको काम कारवाहीबाट त्यस क्षेरका नागररकहरूको वािावरण प्रर्वु षि गरी स्वास््य वािावरणको
हकबाट वस्ञ्चि गना लमल्र्ै न । त्यसैले स्वास््य वािावरण मानव जीवनको आधार हो । स्वच्छ वािावरण
र मानव स्वास््य भन्ने ववषय अनि संवेर्नशील भएकोले ववकास कायाको नाममा मानव स्वास््यमा
प्रनिकूल असर पने गरी कसैले पनन कुनै उद्योग सञ्चालन गना छुट नपाउने ।
Monitoring of EIA or IEE (4) Body for registration of industries shall monitor about such EIA or IEE and may give direction
or also recommend about punishments, if any if not complied with, to the concerned
department.
Self-Declaration by others (5) Industries not requiring to conduct EIA or IEE, shall provide the basis and reason for not
requiring to conduct such tests and also make a self-declaration that they shall take all
necessary measures for protection of environment and mitigation of all the negative effects.
2.6 PERMISSION (Section 8)
Permission required from Following industries shall have to obtain permission from board before registering the
board before registration (1) industries:
a) Industries Specified in Annexure 1:
1. Industries producing explosives including arms and ammunitions and gunpowder
(Such industries shall obtain prior approval from ministry of council, Government of
Nepal also)
2. Industries producing atomic energy or radioactive materials
3. Industries printing securities, bank notes and minting coins
4. Cigarettes, bidi, cigar, chewing tobacco, khaini industries and industries producing
other goods of similar nature utilizing tobacco as the basic raw material
5. Alcohol and beer producing industries, except micro-breweries
6. Industries involved in extraction and refining of gitti, dhunga and baluwa
7. Industries producing radio communication equipment
8. Industries involved in extraction of mineral, petroleum, etc
9. Industries refilling LPG
10. Industries producing drones or providing services by means of drones
11. Other industries requiring permission as per prevailing laws
b) Industries requiring permissions under Foreign Investment and Technology Transfer Act
Application to board through Person desires to establish an industry for which a permission is required to be obtained by
body for registration of virtue of sub-section (1) shall, for obtaining permission, be required to make an application to
industries (2) the board in the prescribed form along with the prescribed particulars through the body for
registration of industries.
Body for registration of On examination of application, if the body for registration of industries is satisfied that all the
industries to report & prescribed documents and information have been received or all the procedures for
recommend to board (3) registration as specified in this act or bye laws under this act have been complied with, it shall
forward a report along with its recommendations, if any to the board within 7 days.
Decision of board within 30 The Board shall make a decision on whether to provide permission or not, to the applicant,
days (4) within 30 days of application.
Terms & Conditions (5) In issuing the permission as per sub section 4, the board may specify necessary terms and
conditions.

Issue permission letter within 5 The body for registration of industries shall, within five days of receipt of information about
days (6) granting of permission by the board issue a permission letter in the prescribed format.
Application for registration (7) Application for registration of industries shall be made within the time specified in the
permission letter and if application is not made within specified time, the permission shall be
ipso facto inactive.
Rejection of permission to be If the Board decides not to grant permission as per the decision under sub section 4, the body
informed within 5 days (8) for registration of industries shall inform about such rejection within five days.
No transfer or sale of The permission granted as per sub section 6 shall not be transferred or sold before operation
permission (9) and commercial production or transactions.
However, if the applicant dies before operation and commercial production or transactions,
remaining acts may be completed by the legal heir of such applicant as per prevailing laws.
2.7 INFORMATION ABOUT COMMERCIAL PRODUCTION OR COMMENCEMENT OF TRANSACTIONS

(Section 9)
Commercial production or Every industry registered under this act, shall start its commercial production, operation and
commencement of transactions commence its transactions within the date as specified in certificate of registration and
to be started within time information of such commencement shall be provided to the body for registration of industries
specified in RC (1) within 30 days.
Apply for extension of time If any industry is not able to start its commercial production, operation and commence its
period (2) transactions, then it shall inform about its inability, with reasons, within before 30 days of
expiry of time specified in the registration certificate, to the body for registration of industries
and apply for extension of time period.
Apply for extension with fine Industries failing to apply for extension as per sub section 2, may, with delay fines, by
(3) mentioning reasons of being unable to start its commercial production, operation and
commence its transactions, make an application to the body for registration of industries for
extension of time period within expiry of time specified in the registration certificate or within
6 months of expiry of time specified in the registration certificate.
Extension to be provided by On receipt of application for extension, and if it is satisfied that the reasons specified in the
body for registration of application are satisfactory, by considering the progress of work or nature of industry, the
industries (4) body for registration of industries may grant the extension of time period as prescribed.
However, if extensions is to be granted for more than three times, approval from board shall
be obtaining.
Start within extended date (5) The concerned industry shall start its commercial production, operation and commence its
transactions within the extended date as per sub section 4.
Refusal to be informed (6) If extension is not granted, written information along with reasons shall be provided to the
applicant within 7 working days.
Cancellation if no extension (7) If time extension is not granted, then the registration permission of the concerned industry
shall ipso facto be cancelled.
2.8 INSPECTION AND SUPERVISION (Section 10)
Inspection of industry (1) The body for registration of industries or Ministry may, from time to time, inspect whether
this act, rules or regulations made hereunder or the conditions specified in the certificate of
registration are complied with or not.
Information to be asked during The officer deputed for inspection and supervision as per sub section 1 may, while on his duty,
inspection (2) enter into the industry, collect audio or video records or other documents and information,
examine necessary records and documents or call for any other information or documents.
However, prevailing laws regarding intellectual property rights shall be complied with, if
necessary.
Duty of industry to coordinate It shall be the duty of the concerned industry to provide the information or documents asked
during inspection (3) for during such inspection.
Assistance for such industry On receipt of information or documents as per sub section (3), if the body for registration of
(4) industries or Office finds that there occurs some type of problems in the operation of such
industry, it may provide necessary assistance to such industry.

2.9 RELOCATION OF INDUSTRIES (Section 11)
Apply for relocation (1) Any industry registered and in operation in one area, if desires itself to be relocated to another
area for any reason, shall make an application with reasons to the body for registration of
industries.
But, if relocation is from one province to another, permission of department is required.
The application for relocation shall be accompanied by following documents along with fees:
a) Tax clearance certificate of previous year,
b) Audit report of previous year,
c) Recommendation of VDC or municipality in which industry is to be relocated,
d) IEE Report,
e) If any facilities, concessions or rebates are availed, copy of recommendation from
the authorities granting such facilities, concessions or rebates,
f) Details of project.
Permission after On receipt of application as per sub section (1), the body for registration of industries may
recommendation (2) permit the relocation after considering recommendation from concerned province level where
the industry is being relocated. Ministry looking after industries of the concerned province as
well as local level shall be informed about such permission.
Other provisions (3) Other provisions relating to relocation of industries shall be as prescribed.
2.10 CAPITAL INCREMENT, EFFICIENCY INCREMENT, OBJECTIVES ADDITION OR ALTER OBJECTIVES

(Section 12)
Apply for permission (1) Any industry desiring capital increment, efficiency increment, objectives addition or
alteration of objectives, shall make an application for such permission to the body for
registration of industries in the format as prescribed.
The application for amendment of permanent capital shall be accompanied by following
documents along with fees:
a) Copy of registration certificate, memorandum of association and articles of
association if such industry is a company or copy of partnership deed if such industry
is a partnership firm,
b) Tax clearance certificate of previous year,
c) Audit report of previous year,
d) Updated details of industry,
e) Recommendations of any concerned departments, if required.
Permission within 90 days (2) On examination of application as per sub section (1), if the body for registration of industries
is satisfied, permission shall be granted for capital increment, efficiency increment, objectives
addition or alteration of objectives within 90 days.
If due to capital increment, efficiency increment, objectives addition or alteration of
objectives, the classification of industry is changed, the register shall be updated and such
matter shall be mentioned in the registration certificate.
No permission required for Notwithstanding anything mentioned in sub section 1 and 2, micro industries and cottage or
micro & cottage or small with small industries not requiring permission with fixed capital up to Rs. 1 crore, shall not require
fixed capital up to 1 crore (3) permission for capital increment or efficiency increment.
However, before such capital increment or efficiency increment, if as per prevailing laws,
Environment Impact Assessment (EIA) test or Initial Environment Examination (IEE) is
required to be done, it shall be the duty of such concerned industries to conduct such tests.
No efficiency increment if only Making production more than the projected production without changing the existing plant or
due to management efficiency machineries, but by increasing capacity and efficiency of management, shall not be considered
(4) as efficiency increment.

2.11 RETURNS TO BE SUBMITTED (Section 13)
Submit returns within 6 Every industry after commencement of its commercial production, operation or after
months of end of FY (1) commencement of its transactions submit the prescribed information and documents to the
body for registration of industries within six months of end of every financial year.
The prescribed information and documents shall be as follows:
a) Tax clearance certificate of previous year,
b) Audit report of previous year,
c) Approved and installed load (Capacity),
d) Others.
Electronic form permitted (2) These information and documents as per sub section 1 may be sent in electronic form also.
Zero return (3) Notwithstanding anything mentioned in sub section 1, if any industry is closed for more than
one fiscal year or due to any reasons no transactions or operation is done, it shall submit zero
return for such period.
However, if the body for registration of industries had been informed about such closure and
it had updated its register, returns for such period of closure is not required.
2.12 INFORMATION ON CLOSURE OF INDUSTRIES (Section 14)
Inform within 30 days If any industry is to be closed due to some reasons or operation and transactions is halted for
some time, then information about such closure or halt must be provided to the body for
registration of industries within 30 days of such closure or halt in the prescribed format.
2.13 APPLICATION FOR CANCELLATION OF REGISTRATION OF INDUSTRIES (Section 15)
Apply for cancellation if If any industry, due to some reasons is unable to carry on, then it shall apply to the body for
reasons persists (1) registration of industries for cancellation of registration with prescribed documents and in the
prescribed format.
However, if the industry is deemed to be insolvent as per prevailing laws, such acts shall be
applicable.
The application for cancellation of registration shall be accompanied by following documents:
a) Assets Valuation report prepared by a licensed valuator.
(However, in case of industry with fixed assets up-to one crore, a report prepared by
the industry itself shall be accepted.),
b) Documents proving of settlement of all the liabilities pending relating to workmen
engaged in the industry,
c) Documents proving settlement of all other liabilities,
d) Report of liquidator, if any,
e) Audit report of previous year,
f) Original registration certificate,
g) Self-declaration that no claims are pending in the court (if any such claims pending,
documents proving deposit of security up-to the amount of dispute).
On receipt of such application, the body for registration of industries shall order the concerned
industry to publish a public notice in national daily newspaper to make claims pending if any
within 35 days.
Cancellation only after all On receipt of application for cancellation of registration as per sub section (1), the body for
liabilities are settled (2) registration of industries after confirming that all the liabilities of such industry are settled and
if it deems fit, shall cancel the registration and notify the applicant as well as all the concerned
government departments.
Insolvency act applicable if Notwithstanding anything mentioned in sub section 1 and 2, industries within the company
gone into insolvency which had gone into liquidation proceedings as per prevailing laws, the prevailing laws shall
proceedings (3) be applicable and the liquidator shall inform about the closure of industry to the concerned
body for registration of industries.
2.14 MANAGEMENT OF RECORDS AND REGISTERS (Section 16)
Duty of body for registration It shall be the duty of body for registration of industries to maintain records and documents
of industries (1) related to industry administration including registration, renewal, transfer, change of name,
relocation, efficiency increment, capital increment, alteration of objectives, objectives
addition or cancellation of registration.
Apply for Copies (2) Any industry or owner of such industry, may apply to the body for registration of industries,
if any documents or records or information mentioned in sub section 1, is required.
Duty to provide copies (3) The body for registration of industries shall, by taking prescribed fees, provide the certified
copies of any documents or records or information, on receipt of application as per sub section
2.
Lost or destroyed (4) If due to any reasons, the records and registers maintained in the body for registration of
industries is destroyed or could not be found, the body for registration of industries shall, on
the basis of documents or information maintained in other concerned government departments
and other documents or information submitted by the industries, update its register and
provide copies as referred to in sub section (3).
Cancellation of copies if later If, later on, it is found that any information or document is different than mentioned in the
found different (5) copies provided pursuant to sub section (4), the body for registration of industries may cancel
such copies.
Provide to industry or owners Any documents or information maintained by the body for registration of industries shall not
only (6) be made available to anyone except such industry itself or owners of such industry.
However, such document or information may be provided to court, government departments
or entities while making investigation or any other governmental actions.
Electronic records (7) The body for registration of industries shall also maintain and keep safely the documents or
records or registers or information in electronic form and my making guidelines and policies
such electronic records may be exchanged with other government departments.
Chapter 3:
CLASSIFICATION OF INDUSTRIES AND PERMANENT
CAPITAL
3.1 CLASSIFICATION OF INDUSTRIES (Section 17)
For the purpose of this Act, industries are classified as follows (1)
(a) Micro Industries Except the industries requiring permission as specified under section 8, following industries
are classified as micro industries:
1) Maximum Rs. 20 Lakhs fixed assets investments (except land and building),
2) Entrepreneur self-involved in management,
3) Maximum 9 employees including entrepreneur,
4) Yearly transaction less than 1 crore,
5) If such industry has used engines, equipment’s or machines then energy used in such
devices in the form of electricity or diesel or petrol or other crude oils shall not exceed 20
Kilo watt.
(b) Cottage Industries 1) Traditional industries,
2) Industries utilizing specific skill or local raw materials and resources, and labor intensive
and related with national tradition, art and culture,
3) If such industry has used engines, equipment’s or machines then energy used in such
devices in the form of electricity or diesel or petrol or other crude oils shall not exceed 50
Kilo watt.
4) Industries specified in Annexure 2:
Handloom, Pedal loom, Semiautomatic loom, Warping, Dyeing and printing, Tailoring
(Other than Readymade Garments), Knitting, Hand knitted Woolen Mat and Blanket
(Radi, Pakhi), Woolen Carpet, Pashmina, Woolen Garments, Carpentry, Wooden Artistic
product, Cane and Bamboo Works, Natural Fiber Products, Hand Made paper and Goods
made up thereof, Gold, Philigiree Products including Silver, Brass, Copper Precious and
Semi-Precious Stones, Ornaments, Sculptures and Pottery, Honey, chyuri, Cardamom
Processing, Clay or Ceramic Pottery, Leather Cutting and Tanning, Rural Tanning and
Leather Goods producing Works, Jute, Sabai Grass, Babio, Choya, Cotton Thread
Products, Artistic Products made up of Bones and Horns, Stone Carving, Ceramic Fine
Arts, Pauwa, Boutique, Incense Stick (Dhup), Dolls and Toys industries.
(c) Small Industries Permanent Capital: Up to 15 Crores (Except Micro and cottage Industries)
(d) Medium Industries Permanent Capital: 15 - 50 Crores
(e) Large Industries Permanent Capital: Above 50 Crores
On the basis of products and types of services above industries are classified as follows (2)
(a) Energy Based Industries Industries generating energy as specified in Annexure 3:
Water resources, wind, solar, coal, natural oil, gas, bio-gas or any other sources, electricity
transmission lines, electricity distribution systems, atomic energy, uranium energy, electricity
energy produced as co-products to sugar industries, study or research on possibilities of
energy.
(b) Manufacturing Industries Industries which produce goods by utilizing or processing raw materials, semi-processed
materials, by products or waste products or any other goods.
(c) Agro and Forestry Based Business mainly based on agriculture or forest products as specified in Annexure 4:
Industries Sericulture and silk production, horticulture and fruit processing, animal husbandry, dairy
industry, poultry farming, fishery, tea gardening and processing, vegetable seed farming,
mushroom, vegetable farming or vegetable processing, tissue culture, green house, bee-
keeping, honey production, rubber farming, floriculture and production, and forestry related
business such as leasehold forests, agro-forestry, saw-mill, parqueting, plywoods, etc.
(d) Mineral Industries Mineral excavation or processing thereof.
(e) Construction Industries Industries constructing or operating physical infrastructures as specified in Annexure 5:
Road, bridge, ropeway, railway, trolley bus, tunnel, flying bridge and industrial, commercial
and residential complex construction and operation, stadiums, export processing zones,
special economic zones, cargo complex, waste water treatment plants, telephone towers,
optical fiber networks, space satellites, film city, film studies, private ware house, pipe line
for fuel or energy, vehicle parking, irrigation infrastructures, airport or run ways, etc.
(f) Tourism Industries Industries relating to tourism services as specified in Annexure 6:
Tourist lodging, motel, hotel, restaurant, resort, travel agency, skiing, gliding, water rafting,
cable car complex, pony-trekking, hot air ballooning, Para sailing, golf-course, polo, horse-
riding, water parks, entertainment parks, wildlife reserves, casinos, massage, spa, travel
agencies, tour operators, hill stations, etc.
(g) IT & communication Industries providing facilities of Information and communication technology by Information
technology Industries collection, processing and transmission; as specified in Annexure 7:
Technology parks, I.T. Parks, Biotech parks, software development, computer or related
services, data refining, cyber cafes, digital mapping, business process outsourcing, knowledge
process outsourcing, data centers, data mining, cloud computing, digital signatures
certification agencies, internet service providers, telephone, mobile phone, mobile satellite
phone operators, teleporting, satellites, V-Sat Services, broadband, optical networks, satellite
networks, F.M. radios, digital radios, television, online net televisions, cable, Direct to home
(DTH), DTV networks, recording studios, broadcasting studios, print medias, audio visual
materials production and distribution, advertisements, movies, etc.
(h) Service Industries Industries producing or providing services as specified in Annexure 8:
Workshop, printing press, consultancy service, cinematography, construction business, public
transportation business, photography, hospital, nursing home, educational and training
institution, laboratory, air services, cold storage, yoga, libraries, sports, swimming pool,
courier, securities, publications, soil testing, health clubs, business incubation, foreign
employment man-powers, commercial tissue paper steeling, ball bearing assembly, etc.
Ipso facto classification (3) Any industry which had increased capital or increased efficiency or made additions to
objectives or altered objectives as per section 12, shall be ipso facto classified to the class in
which they are to be classified.
Reclassification by GoN (4) Notwithstanding anything mentioned elsewhere in this section, Government of Nepal may,
on recommendation of Board, by publishing a notice in Nepal gazette, make provisions to
include any type of industry in any classification or reclassification.
Cooperatives to register Any cooperatives association incorporated under prevailing laws, desirous to register any
industry under this act (5) industry under its ownership, may register industries as per this act.
Body for registration of Any industries registered prior to commencement of this act, desirous to be classified as per
industries to change (6) this act, the body for registration of industries may reclassify and update its register.
Alteration by GoN (7) Government of Nepal, may by publishing a notice in Nepal gazette, may make necessary
alteration in sub section 1 or 2.
3.2 PERMANENT CAPITAL OF INDUSTRIES (Section 18)
Fixed Assets of an industry The fixed asset of an industry shall consist of the following movable and immovable assets:
consists of (1) a) Land and physical infrastructures made on land, underground, in space, above water or
under water,
b) Physical infrastructures made above land (i.e. sewerage, internal roads, infrastructures
of drinking water, system of water distribution)
c) Office, factory building, go-down
d) Residential buildings made for employees,
e) Equipment related to electricity distribution,
f) Machinery, equipment and tools and consumables,
g) Means of transportation,
h) Office equipment of capital nature,
i) Furniture and fixture,
j) Equipment related to communication system.
Application for change in the Industrial Enterprises Regulation, 2076
permanent capital The application for amendment of permanent capital shall be accompanied by following
documents along with fees:
f) Copy of registration certificate, memorandum of association and articles of
association if such industry is a company or copy of partnership deed if such industry
is a partnership firm,
g) Tax clearance certificate of previous year,
h) Audit report of previous year,
i) Updated details of industry,
j) Recommendations of any concerned departments, if required.
Capitalized Expenditure also In addition to the assets referred to in sub-section 1 above, expenses incurred or to be incurred
to be considered as Fixed in connection with technical consultancy and supervision prior to the making of investment
Assets (2) in any industry or during different stages of construction and which is to be capitalized, pre-
investment and pre-operation costs as well as the amount of interest during the construction
period and expenses relating to study of environmental impact and research incurred prior to
operation, which is to be capitalized, shall be considered as the fixed assets of any industry.
3.3 NATIONAL PRIORITY INDUSTRIES (Section 19)
Annexure 9 1) Energy based Industries

2) Agro and Forestry-based industries.
3) Construction based Industries
4) Export Industries
5) Tourism Industries
6) Industries related to Mineral, petroleum and natural gas extraction and production
7) Industries producing clinkers and cement using domestic raw materials, Pulp and paper,
sugar, fertilizers, powder milk, medicines, etc.
8) Engineering Industry (Producing Agricultural and Industrial Machine).
9) Industry Manufacturing Fuel Saving or Pollution Control Devices.
10) Solid Water Processing Industry.
11) Road, Bridge, Tunnel, Ropeway and Flying Bridge Constructing and Operating Industry
and Trolley Bus and Train Manufacturing and Operation Industry.
12) Hospital (Human and animals) and Nursing Home (Only outside the Kathmandu
Valley).
13) Medical research industries
14) Industries producing vehicles operating from electricity
15) Cottage Industries

16) Industries permitted by GoN under national trade integration strategies (NTIS)
Chapter 4:
PROVISIONS RELATING TO INDUSTRIAL INVESTMENT
PROMOTION BOARD
4.1 FORMATION OF THE INDUSTRIAL PROMOTION BOARD (Section 20)
To make decisions on policies Number & Position Person

regarding promotion and 1 Chairman Minister or State Minister for Industries. Commerce and supplies
incorporation of industries, 1 Member Member of National Planning commission looking after industries
encouragement of investments, 1 Member Governor, Nepal Rastra Bank
protection and extension of 1 Member Secretary, Ministry looking after industries
industries and to foster the 1 Member Secretary, Ministry of Finance
pace of industrialization, an 1 Member Secretary, Ministry of Labor, employment and social security
industrial promotion board 1 Member Secretary, Ministry of Land Management, Cooperatives and
shall be constituted with Poverty Alleviation
following members (1) 1 Member Secretary, Ministry of Forest and Environment
1 Member Chief Executive Officer, Office of the Investment Board
1 Member Joint-Secretary, Industrial Promotion Department (Mahasakha)
1 Member President, Federation of Nepal Chamber of Commerce and
Industry (Mahasangh)
1 Member President, Confederation of Nepalese Industries (Parisang)
1 Member President, Federation of Nepal Cottage and Small Industries
(Mahasangh)
1 Member President, Federation of Women Entrepreneurs Association
2 Members Two persons nominated by Government of Nepal, from experts
among industry sector (One must be Female)
1 Member - Secretary Director General, Depart of Industries
State minister as member (2) Notwithstanding anything mentioned in sub section 1, in case where both minister and state
minister are present in Ministry, the state minister shall remain as member only of the board.
Observers, if any in meetings The Board may, if it deems necessary, invite any secretary of Government of Nepal or
(3) Provincial Government, related to the field or any officer employee or any national or foreign
expert or consultant at any meeting of the Board to participate therein as an observer.
Meetings of board (4) Meetings of the board shall be held at least once in two months and as per necessity.
Agendas to be sent at least 24 The member secretary shall, on consultation with chairman, prepare agendas for the board
hrs. prior (5) meeting and send notice along with such agendas to all the members at least twenty-four hours
prior to the board meeting.
Interested member not For any agenda that is presented in the board meeting for decisions, the board member with
allowed to vote in board's personal concern or interest is restricted in taking part in decision making in such particular
meetings (6) subject.
Void if contravened (7) Any decisions made in contravention to sub section 6 shall be void.
Duty of secretary (8) The secretary shall authenticate and keep the records of the decisions made by the board.
Secretariat (9) Secretariat of board shall be located in Department of Industries.
Other provisions (10) Other provisions relating to meetings of the board shall be prescribed by the board itself.
4.2 FUNCTIONS, DUTIES AND POWERS OF THE BOARD (Section 21)
Functions, Duties and Power of 1. To render necessary cooperation in formulating and implementing policies, laws and
the Board (1): regulations pertain to the industrialization of the country.
1. Policy formulation 2. To give guidelines in attaining the objectives of liberal, open and competitive economic
2. Guidelines policies pursued by the country so as to make the industrial sector competitive.
3. Foreign Investments 3. To make recommendation to Government of Nepal regarding to the foreign investment
4. Coordination and technology transfer.

5. Prevent environment 4. To maintain coordination between the policy level and the implementation level of the
pollution industrial policy.
6. Recommend GoN 5. To cause to follow the ways and means for the prevention of the environmental pollution
7. Give directions by putting more emphasis on the avoidance of effects on the environment and the public
8. Entertain grievances health.
9. One window 6. To make recommendation to Government of Nepal for the inclusion of any industry in
committee the classification of industries or reclassification.
7. To make recommendation to Government of Nepal to introduce changes in the Areas by
making evaluation thereof from time to time.
8. To give directives to the concerned body after making enquiries 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.
9. To provide guidelines and make policies to create coordination between and provide
recommendations to province governments and local levels.
10. To entertain or cause to entertain the grievances relating to industry.
11. To operate One Window Committee.
12. Other functions, duties and power of the board shall be as prescribed.
Delegation (2) The board may delegate any of its function, powers and duties to any department or officer of
Government of Nepal.
Report to ministry annually, The board shall prepare and submit a report of its annual activities to the ministry within thirty
within 30 days of end of F.Y. days of completion of a fiscal year and the ministry shall publish such report in its website.
(3)
4.4 SECRECY (Section 22)
Maintain confidentiality (1) No person shall himself or cause to supply or disclose any confidential information or notice
obtained in the course of performing the duties of office to another person in unauthorized
manner or use such information or notice for benefits of any person.
Violation of code of conduct (2) If chairperson, members, member-secretary or any person invited in meetings or employees
performs the acts specified in sub section (1), he shall be deemed to have acted against
professional code of conduct and official responsibility
4.4 PROVISIONS RELATING TO PROVINCE LEVEL INDUSTRIAL PROMOTION BOARD (Section 23)
Province level industrial To make decisions on policies regarding promotion and incorporation of industries in
promotion board (1) province level, encouragement of investments, protection and extension of industries of
province level and to foster the pace of industrialization in province level, an industrial
promotion board may be constituted in province level also.
Work in province level (2) The functions, duties and power of this board shall be similar to the industrial promotion
board formed under section 21 but it shall be relating to province level only.
Recommend to ministry (3) The province level industrial promotion board may, through concerned provincial ministries,
provide necessary recommendations to the ministry for promotion of industries in province
level.
Chapter 5:
CONCESSIONS, FACILITIES AND EXEMPTIONS AVAILABLE
TO INDUSTRIES
5.1 FACILITIES AND CONCESSIONS RELATED TO INCOME TAXES (Section 24)
Type/ Nature of industry Facilities and concessions

Manufacturing 20 % rebate on applicable tax rates
& if Manufacturing and exporting Additional 5 % rebate

Industries investing in and operating Road, Bridges, Tunnels, Rope-ways, 40 % rebate on applicable tax rates
Trams, Trolley Buses, Airports, Industrial infrastructures and complexes
Industries other than wine, cider or brandy industries based on fruits Rebate up to 10 years of commencement of
incorporated and operating in areas specified: commercial manufacturing or operation:
Rebate Areas
90 % Remote
80 % Undeveloped
70 % Underdeveloped
Industries relating to wine, cider or brandy production based on fruits Rebate up to 10 years of commencement of
incorporated and operating in areas specified: commercial manufacturing or operation:
Rebate Areas
40 % Remote
25 % Undeveloped
Annexure 10: Classification of Areas
Remote Darchula, Baitadi, Bajhang, Bajura, Achham, Doti, Mugu, Dolpa, Humla, Jumla, Kalikot, Jajarkot,
Rolpa, East Rukum, West Rukum, Mustang, Manang, Solukhumbu, Khotang, Okhaldhunga,
Taplejung, bhojpur & Panchthar
Undeveloped Dadeldhura, Pyuthan, Myagdi, Dailekh, Parbat, Lamjung, Salyan, Gulmi, Baglung, Gorkha, Dolakha,
Ramechhap, Sindhuli, Sindhupalchowk, Rasuwa, Dhankuta, Sankhuwasabha & Terathum
Underdeveloped Kanchanpur, Kailali, Bardiya, Dang, Surkhet, Palpa, Arghakanchi, Shyangja, Kapilbastu, Tanahu,
Nuwakot, Dhading, Kavrepalachowk, Rautahat, Sarlahi, Mahottari, Siraha, Saptari, Udyapur & Illam
Domestic tea production and processing industries, dairy industries with 50 % rebate on applicable tax rates
business of mil related products, garment industries producing clothes
Royalties on export of intellectual property rights 25 % rebate on applicable tax rates
Sale of intellectual property rights 50 % rebate on applicable tax rates
Manufacturing or service industries to be incorporated with fixed assets or 100 % Rebate up to 5 years of commencement of
permanent capital above 1 arba and providing employment to more than 500 transactions and 50 % Rebate for next 3 years
employees throughout the year,
And
Industries now in operation with increment of minimum 25% of its installed
capacity and capital maintained up to 2 arba and also providing employment
to more than 300 employees throughout the year.
Person or entity with permission for Production, transmission or distribution 100 % Rebate up to 10 years of commencement of
of hydroelectricity, projects producing electricity from solar energy, wind transactions and 50 % Rebate for next 5 years
energy or biotechnology up to 2080 B.S.
Industries engaged in extraction and refining of minerals except lime stones, 100 % Rebate up to 7 years of commencement of
petroleum, natural gas or fuels commencing its financial transactions within transactions and 50 % Rebate for next 3 years
2080 B.S.
Industries relating with tourism incorporated with more than 2 arba fixed 100 % Rebate up to 5 years of commencement of
assets or permanent capital transactions and 50 % Rebate for next 3 years
Industries notified by the Government of Nepal by publishing a notice in 50 % rebate on applicable tax rates
Nepal Gazette, relating to zoological, geological, biotech, IT parks, software
developers, data refining, cyber cafes, digital mappings, etc.
Manufacturing or IT related industries providing employment to prescribed No of Nepalese Rebate
number of Nepalese employees throughout a year: Employees
300 or more 15 %
1200 or more 25 %
If the employees contains minimum 50 % of
female or dalits or differently abled persons, 15
% rebate is provided on the applicable tax rates
of the concerned year in addition to normal
rebates as provided above.
Expenditures done by any industry relating to long term benefits of its Allowable
employees or welfare activities like life insurance, health and medical
facilities, social security fund, education and trainings, child care, physical
fitness, etc.

Any manufacturing industry with trainees (minimum 10 % of its total Allowable

employees) and making expenditure in training of such trainees, daily
allowances and expenditures made for increment and development of
efficiency of employees
Expenditures made for equipment relating to pollution prevention or control Expenditure allowed in the same year: 50 % of
or recycle and reuse of waste products or any other techniques or methods or Adjusted Taxable Income and
products that helps in reducing or controlling pollution Expenditure in excess of above are to be
capitalized in the beginning of next F.Y. and
depreciation can be claimed
Expenditure relating to techniques or methods or products that helps in Allowable
reducing energy consumption by increasing energy efficiency
Expenditures made for increasing production, efficiency of employees, Expenditure allowed in the same year: 50 % of
research and development and new techniques formulation Adjusted Taxable Income and
Expenditure in excess of above are to be
capitalized in the beginning of next F.Y. and
depreciation can be claimed
Expenditures relating to market or business promotion, penetration and Allowable up to prescribed limit
advertisement
Expenditures relating to security of physical assets of the industry and Allowable
insurance premium
Preservation of Intellectual Property Rights registered in Nepal Allowable
Fees paid for registration of IPRs outside Nepal Allowable
Donation or gifts granted to tax exemption entities Allowable: Lower of
a) Rs. 1 lakhs or
b) 5 % of Adjusted Taxable Income
More than one facilities in relation to same income Only one facility as opted by the industry
Except tobacco or alcohol related industries or casinos, all industries which No dividend tax on such capitalization
have used the retained earnings in efficiency increment of the industry or
manufacturing or energy based or agriculture based industries which have
converted such retained earnings into capital
5.2 FACILITIES AND CONCESSIONS RELATED TO CUSTOM DUTIES (Section 25)
Industry Facilities and concessions

Industries exporting their products or services without availing Refund of amount of duty drawback
facilities of bonded warehouse or cash retention (pass book)
Industries exporting their products or services without permission Can import the raw materials or other necessary raw
of bonded ware house but through LC or prevailing banking materials or packaging items not produced in Nepal by
systems or sale within Nepal in convertible foreign currency depositing guarantee
Import of industrial machineries or generator of 10 KW or more or Lowest custom rates
other industrial equipment
Import of machineries relating to quality check or other scientific Lowest custom rates
equipment or machineries or equipment relating to research and
development
Industries producing intermediate goods used in products that are Refund of custom duties on the basis of quantity
exported consumption, if application made within a year of export
5.3 OTHER FACILITIES AND CONCESSIONS TO MICRO INDUSTRIES (Section 26)

Micro Industries 1) No registration fees on registration of Micro Industries.
2) 5-year Tax Holiday for any Micro Industries in operation before this act or any Micro Industries
incorporated under this act.
3) Addition 2 years tax holiday if such micro industry is being operated by women entrepreneurs
5.4 ADDITIONAL FACILITIES AND CONCESSIONS TO WOMEN ENTREPRENEURS (Section 27)


Industry with women 1) Notwithstanding anything contained in the prevailing laws, the concession of 35% shall
entrepreneurship be provided in the registration fee prevailing at the time of registration if any industry is
registered under the sole ownership of women entrepreneur.
2) Notwithstanding anything contained in the prevailing laws, the concession of 20% shall
be provided in the registration of industrial assets prevailing at the time of registration of
assets to any industry registered under the sole ownership of women entrepreneur,
3) If women entrepreneur wishes to establish industry in an industrial area, she shall be
availed space inside the industrial area with priority as prescribed.
4) Industry registered with the sole ownership of women entrepreneur may be availed export
credit as prescribed for the purposes of export of its industrial production on the basis of
financial position of the business.
5.5 SPECIAL PROVISIONS FOR INDUSTRIES OPERATING IN INDUSTRIAL AREAS (Section 28)

Industry located in Industrial Areas, Industrial Clusters, Industrial Corridors, or As specified by Government of Nepal
Industrial Grams
5.6 FURTHER FACILITIES AND CONCESSIONS (Section 29)
The following industries, in addition to the facilities and concessions as set forth in section 24, 25, 26, 27 & 28, may be
granted further facilities and concessions as below:
Industry Further Facility

Forest based industry Forest-based industry may be made available any forest on a leasehold basis.
Generates electricity for its own No royalty shall be imposed if any industry generates electricity for its use.
use
Sale of electricity generated for If electricity generated for its use is in excess then it can be sold as per the rate under contract.
own use
Industries established in EPI Government of Nepal may, by notification published in the Nepal Gazette, grant additional
and Industrial estates facilities to the Export Promotion Industry and prescribed industries established in the Export
Processing Zone and in the government or non-government industrial estate.
National Priority Industries On the recommendation of and with the decision of the Council of Ministers, and by
notification published in the Nepal Gazette, additional facilities may be granted to any
National Priority Industry or any industry established in Nepal by the way of invention done
in in Nepal itself.
Concessions during the period Concessions can be provided to the industries for the period when there is no electricity
of lack of electricity supply supply as per demand charge.
Grants for seed capital Grants can be provided to micro, cottage or small industries situated in remote areas for Seed
capital: aLp k"FhL -l;8 Soflk6n_.
Import permission for new For industries operating under foreign investment, import permission can be provided for
products new product manufacture and promotion if such import is done from parent company.
5.7 PROVISIONS RELATING TO LAND (Section 30)
Land to be purchased by Land should be purchased by industry itself.

industry itself Provided that, if the entrepreneur cannot purchase by himself then he may apply, with
reasons, to the department and department can assist in such purchase.
Industrial Enterprises Regulations, 2076
Following industries shall obtain such assistance from department:
a) National Priority Industries,
b) Export Industries,
c) Medium and Large scale industries established in Under-developed areas,

d) Industries providing employment to minimum 500 employees,

e) Industries investing more than ten arba in Permanent Capital,
f) Industries based on minimum 50% local national raw materials in its finished goods
and in case of imported raw materials, medium and large scale industries with
minimum 50% value addition.
5.8 LAND TO BE MADE AVAILABLE ON LEASE (Section 31)
Land to be made available in 1. National Priority Industries can apply to the department for lease rental facility for land
lease under ownership of GoN.
The application for such land lease shall be accompanied by following documents:
a) Copy of registration certificate,
b) Details of industry project,
c) Details of area required and location of land,
d) Recommendations to be obtained from any other authority, if any,
e) Reasons for obtaining such lease,
f) Recommendation from concerned local federal level.
2. Applications received from such NPIs shall be forwarded to ministry.
3. Facility may be provided by GoN as per prevailing laws.
4. Terms and conditions of lease rental shall be as per the agreement between GoN and
applicant.
5. If any industry in operation on lease rental land is unable to operate then, the land shall
revert to GoN and agreement shall be ipso facto suspended.
5.9 POSSESSION OF LAND IN EXCESS OF THRESHOLD LIMIT (Section 32)
Possession of Land in excess of If any industries require land in excess of threshold limit, it shall make an application to the
threshold limit: apply for body for registration of industries to for permission to own and possess such land in excess
permission (1) of the threshold limit prescribed.
Report to Ministry (2) On receipt of such application, the body for registration of industries shall, after inquiry and
investigation prepare and forward a report along with its recommendation to the ministry.
Grant of permission by GoN (3) Government of Nepal may grant such permission to keep or possess such land in excess of
the threshold limit prescribed on the basis of necessity or scheme or project proposal
presented by the industry.
Monitoring & if misused taken Body for registration of industries may monitor the use of such excess land and if any misuse
back (4 & 5) is found Government of Nepal may revert back such land without any conditions.
Nontransferable or cannot be Such land owned or possessed in excess of the threshold limit prescribed on permission of
kept as collateral (6) GoN shall not be sold or transferred or disposed off otherwise or kept as collateral for bank
loans.
5.10 GUARANTEE OF FACILITIES (Section 33)
Once registered facilities and An industry which is operated by obtaining permission or by getting registered under the
concessions are granted (1) Industrial Enterprises Act, 2073 shall continue to enjoy the time bound facilities and
concessions under the Act and with regard to the facilities and concessions for which no time
has been fixed; it shall enjoy the facilities and concessions under this Act.
Industries registered before • An industry which has been registered or has obtained permission before the
this act shall also enjoy the commencement of this Act, but which has started its commercial production only after the
facilities and concessions (2) commencement of this Act shall enjoy the facilities under this Act.
• Provided that if the time bound facilities and concessions to be enjoyed under the Industrial
Enterprises Act prevailing at the time registration or obtaining permission by such industry
are for more than the period as granted by this Act or if the facilities and concession are
not to be made available under this Act, nothing shall prevent from enjoying the facilities
and concessions under the prevailing Industrial Enterprises Act.

• An industry which has been registered or has obtained permission before the
commencement of this act shall be entitled to enjoy such time-bound facilities and
concessions as are being enjoyed by it at the time of registration of obtaining permission
in accordance with the law and with regard to the facilities and concessions for which no
time has been fixed, it shall enjoy the facilities and concessions under this Act.
Kantipur television Network सरकारले कुनै उद्योग व्यवसाय सन्चालनको लागग कसैलाई सहमिी प्रर्ान गरी आश्वासन दर्एपनछ
Ltd. Vs Ministry of
त्यही ववश्वासमा परी अको पक्ष अगाडि वढे कोमा सरकारले पनछ कुनै कारण जनाई पदहला दर्एको
communication
अनुमिी कर्िाा ललन सतर्ै न, त्यस्िो सहमिी र अनुमिी पुरा गनप
ुा ने ।
5.11 INDUSTRIES NOT TO BE NATIONALIZED (Section 34)
Prohibited (1) No Industry registered under this act shall be nationalized.

No acquisition or takeover (2) No industry shall be directly or indirectly acquired or taken over, except for the shake of public
interest. For acquisition or take over for the shake of public interest, applicable prevailing
laws shall be complied with.
5.12 PROVISIONS RELATING TO INDUSTRIAL SAFETY (Section 35)
Prescribed by GoN For the industries registered as per the prevailing laws, Government of Nepal shall provide
the industrial safety as prescribed.
5.13 NO MISUSE OF FACILITIES AND CONCESSIONS (Section 36)
Use as per granted (1) The facilities and concessions granted to industries shall be utilized for the same purpose for
which it was granted.
If contravened, no facilities (2) If any industry contravenes this act, or rules or regulations made hereunder such industries
shall not be granted concessions and facilities under this chapter.
Chapter 6:
PROVISIONS RELATING TO ONE WINDOW COMMITTEE
6.1 ONE-WINDOW COMMITTEE (Section 37)
Constituted by GoN (1) For the purpose of making easy and on time availability of the services, facilities, exemptions,
rebates and concessions to be enjoyed by any industry under this Act or any other relevant
acts or facilitating all activities to be performed by different government authorities at one
place and services of permission, registration, extension or cancellation of industries at one
place Government of Nepal constitute a One-window committee and operate.
As prescribed (2) The location, facilities that may be provided to industries by such committee, representatives
of department in the committee shall be as prescribed.
Delegation of functions and For representation of different departments in the committee, concerned committee shall send
duties (3) their employees in required number and delegate different functions and duties to them as per
prevailing laws.
As prescribed (4) Other provisions relating to the one-window committee shall be as prescribed.
Committee for service (5) Until the one-window committee as prescribed in sub section 1 is established, government of
Nepal shall constitute a committee for an one-window facility service by publishing a notice
in official gazette.
6.2 FUNCTIONS, DUTIES AND POWERS OF THE COMMITTEE (Section 38)

Functions, Duties and Power of 1. To perform functions relating to, as per prevailing laws, registration of company, firm or
the Committee industries, permission, renewal, approval for commencement of transactions, efficiency
increment, winding up (Except insolvency) and other administrative functions,
2. To perform functions relating to approval of foreign investment as per prevailing laws,
3. To perform functions relating to approval of labor or work agreements as per prevailing
laws,
4. To perform functions relating to visas as per prevailing laws,
5. To perform functions relating to EIA or IEE as per prevailing laws,
6. 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,
7. To implement and make necessary decisions for making available the facilities and
concessions to be enjoyed by any industry under this Act or any other prevailing laws,
8. To perform functions relating to approval of foreign exchange as per prevailing laws,
9. To provide PAN as per prevailing laws,
10. To perform functions relating to department of export, commerce and consumer welfare,
export relating services, EXIM code, bonded ware house facilitations as per prevailing
laws,
11. To perform such functions as may be delegated by the Board under its functions, duties
and powers,
12. To coordinate to the concerned departments for mines and related permissions,
13. To accept the documents regarding registration of industries in electronic form and to
develop system of electronic process among inter departments,
14. To facilitate then acquisition of land by industry, assist in obtaining land on lease and
facilitate if land is required in excess of limit prescribed,
15. To recommended export permission, if required, as per prevailing laws,
16. To establish investment portal and disseminate information regarding investments,
17. To perform all kinds of activities to facilitate industries,
18. To cause to comply with directions provided by department or ministries,
19. Other functions, duties and powers of the Committee shall be as prescribed by publishing
in Nepal Gazette.
Chapter 7:
PROVISIONS RELATING TO SICK INDUSTRIES
7.1 IDENTIFICATION OF SICK INDUSTRIES (Section 39)
Sick industries (1) • Minimum 5 years has elapsed since commencement of production or business
• Except on intentional or management weakness
• Running under 30% or less of its production capacity during previous 3 years (Continuous)
• Continuous loss for 3 years above
Government of Nepal on recommendation from Ministry of Finance, declare any of the
following industry as sick industry:
a) Industries unable to repay loan and interest,
b) Industries with exceptionally high loan in proportion to capital,
c) In case of industries listed in Nepal Stock Exchange, industries with share’s market
price lower than face value,
d) Industries producing lower than break-even point for continuous previous 3 years,
e) Industries unable to be operated due to natural calamities, force majure or other
circumstances beyond control,
f) Industries unable to compete in international markets, due to changes in international
industrial or financial provisions.
Revival of sick industries (2) For revival, reconstruction and management of industries closed on being sick industry as per
sub section 1, on examination of the scheme or project analysis submitted by such industry,
Government of Nepal may grant prescribed facilities or concessions for certain period.

Revival by cooperatives (3) Industries declared as sick industry may be revived by any cooperative associations with
approval from investors.
7.2 CLASSIFICATION OF SICK INDUSTRIES (Section 40)
Classification As Prescribed
Prescribed in Industrial Enterprises Regulation, 2076
Classification Fully Sick Sick Partial Sick
Except for intentional or Y Y Y
managerial weakness
Decrement in Equity 70% 50% 30%
Running under ___ % or less of 20% 25% 30%
its production capacity during
previous 3 years (Continuous)
Closed for previous ___ years 3 2 1
(Continuous)
On providing any facilities, 5 3 2
concessions and rebate as
provided under this act or
regulation and expected to
operate in profit within ___ years
7.3 FACILITIES, CONCESSIONS AND REBATE TO SICK INDUSTRIES (Section 41)
Relaxation on taxes on import Government of Nepal may provide full or partial rebate on duty, fees and taxes of any kind
of machineries levied on machineries, equipment, tools or devices imported for extension, reconstruction and
diversification of such sick industry as per section 39 & 40.
Government of Nepal may make recommendations to the concerned authorities for the
following facilities, concessions and rebates:
a) Restructuring the existing loans into soft loans,
b) Rebate in interests and penalty on loans,
c) Provide additional loans at lower discounted interest rates,
d) Full or partial rebate on duty, fees and taxes of any kind levied on machineries,
equipment, tools or devices or raw materials imported,
e) Full or partial rebate on duty, fees and taxes of any kind levied on export of products,
f) Increase repayment period of loans,
g) Provide full or partial rebate on applicable duty, fees and tax rates.
7.4 PROVISIONS RELATING TO REVIVAL OF SICK INDUSTRIES (Section 42)
As prescribed by GoN (1) For the purpose of providing recommendations on identification, classification, revival,
reconstruction or management of Sick industries, Government of Nepal may form a board
constituting of experts of the related fields.
Such board shall have five members as constituted by Special class gazette or equivalent
officer of GoN as convener and First class gazette or equivalent officer of GoN, experts in the
field of industries, commerce, banking and financial sectors as members.
Functions & duties (2) Functions, powers and duties of such board shall be as prescribed.
a) Identify sick industries,
b) Analyze physical and financial state of sick industries,
c) On-site study of sick industries,
d) Recommend GoN about steps for revival of sick industries.

Chapter 8:
PROVISIONS RELATING TO PUNISHMENTS AND APPEAL
8.1 PROVISIONS RELATING TO PUNISHMENT (Section 43)
Offence Punishment
Non registration Order of closing down of such industry and Monetary Fine:
Micro Industries Rs. 5,000.00
Cottage Industries Rs. 25,000.00
Small Industries Rs. 25,000.00
Medium Industries Rs. 50,000.00
Large Industries Rs. 1,00,000.00
Acted against objectives Micro Industries Rs. 2,000.00
Cottage Industries Rs. 50,000.00
Medium Industries Rs. 1,00,000.00
Large Industries Rs. 5,00,000.00
Not commenced its commercial production or Micro Industries Rs. 2,000.00 for every 6 months
transactions as per section 9 or non- Cottage Industries Rs. 10,000.00 for every 10 months
submission of information regarding such Small Industries Rs. 10,000.00 for every 6 months
commencement Medium Industries Rs. 25,000.00 for every 6 months
Large Industries Rs. 25,000.00 for every 6 months
Relocated without permission as per section Micro Industries Rs. 5,000.00
11 or alteration of objectives or capital, etc. Cottage Industries Rs. 25,000.00 to Rs. 50,000.00
on violation of section 12 Small Industries Rs. 25,000.00 to Rs. 50,000.00
Medium Industries Rs. 1,00,000.00 to Rs. 3,00,000.00
Large Industries Rs. 1,00,000.00 to Rs. 3,00,000.00
Non filing of returns on due date as per Micro Industries Rs. 1,000.00
section 13 Cottage Industries Rs. 5,000.00
Medium Industries Rs. 10,000.00
Large Industries Rs. 25,000.00
Violation of section 36 i.e. misuse of facilities Withdraw the facilities or concessions Or
if already utilized then recovery of amount so utilized or fine of same amount
Or
Both
Violation of section 54 i.e. CSR Provisions Monetary Fine: 1.05% of Annual Net profit for first year and addition 0.5%
of Annual Net Profit for each successive years of violation
Noncompliance of the act or rules or Micro Industries Rs. 5,000.00
regulations or directions Cottage Industries Rs. 50,000.00 to Rs. 1,00,000.00
Small Industries Rs. 50,000.00 to Rs. 1,00,000.00
Medium Industries Rs. 1,50,000.00 to Rs. 3,00,000.00
Large Industries Rs. 2,50,000.00 to Rs. 3,00,000.00
Other violations except mentioned above Micro Industries Rs. 15,000.00
Cottage Industries Rs. 15,000.00 to Rs. 30,000.00
Small Industries Rs. 15,000.00 to Rs. 30,000.00
Medium Industries Rs. 30,000.00 to Rs. 50,000.00
Large Industries Rs. 50,000.00 to Rs. 1,00,000.00
While imposing punishments under this section, if the industry is the industry requiring permission as per section 8, additional
50% of the prescribed punishment as above shall be charged.
For industries whose registration and monitoring is done by province level or local level punishments shall be as prescribed by the
prevailing laws made applicable by them.
8.2 RECOVERY AS IF GOVERNMENT DUE (Section 44)
Recovered as government dues Any punishments imposed as per this act shall be recovered as if they were government dues.
8.23 OPPORTUNITY TO SUBMIT CLARIFICATION (Section 45)
Reasonable opportunity Before imposing any punishments as per this act, a reasonable opportunity shall be granted to
submit clarification and defend.
8.4 APPEAL (Section 46)
Appeal within 35 days (1) Any person not satisfied with the punishment orders as per this act, may go for appeal to the
concerned high court within thirty five days of receipt of such information.
Hierarchy of appeal (2) Unsatisfied with decision of Appeal to
Body for registration of industries at local level Concerned District Court
Department Concerned High Court
Chapter 9:
MISCELLANEOUS
9.1 PROVISIONS RELATING TO SPECIAL ECONOMIC ZONES OR EXPORT PROCESSING ZONES OR
EXPORT PROMOTING ZONES (Section 47)
Prescribed by GoN Government of Nepal shall by publishing in official gazette specify special economic zones
or export processing zones or export promoting zones or international economic zones,
tourists or any other areas.
9.2 PROVISIONS RELATING TO NEPAL ENTREPRENEURS FORUM (Section 48)
Formed by GoN (1) For the effective implementation of acts and policies relating to industries, for promotion and
facilitation and increased coordination between public and private sectors, for identification
of problems while incorporating and operating industries and recommending necessary
suggestions and recommendations to Government of Nepal, for assisting in implementation
of such suggestions and recommendations, Government of Nepal shall form a Nepal
Entrepreneurs Forum with the representation form private sector also.
Functions, duties & powers (2) Formation, members, functions, duties and powers of the Nepal Entrepreneurs Forum shall be
as prescribed.
9.3 INDUSTRIAL HUMAN RESOURCES (Section 49)
Human resources must be The human resource required for any industry shall have to be recruited from among Nepali
Nepali Citizens (1) citizens.
Foreign nationals can be Notwithstanding anything contained in sub-section (1) above, if any industry cannot be
employed for max 5 years but operated without person living outside his/her own country expatriate (emigrant) human
with prior permission of resource, foreign nationals may be appointed in such industry with the prior approval of the
department of labor (2) Department of Labor for a maximum period of five years.

Information to be submitted to For the purpose of obtaining approval as per sub section 2, the concerned industry shall apply
Department of Labor (3) to Department of labor with particulars regarding the concerned industry’s requirement, non-
availability of such skills in Nepal, etc.
2 years extension (4) If a person so appointed happens to be a technician of special category but not available within
Nepal, such person may, with the approval of the Department of Labor, be appointed for up
to an additional period of two years.
Foreign nationals can send A foreign national who is working in any industry pursuant to Sub-section (2) above and who
70% of their salaries, is from a country wherein convertible foreign currency is in circulation, may repatriate (take
remunerations, etc. to their home) his salaries, allowances, emoluments, etc., in convertible foreign currency in an amount
home countries (5) not exceeding seventy percent of such salaries, allowances and emoluments.
Restriction of strikes, lockouts, The workers or employees in industries shall not be engaged in strikes, lockdowns, etc. that
etc. (6) may cause obstruction in operation and production.
However the valid demand of workers or employees can be settled in peaceful manner and
with consultation of both parties.
Settlements of disputes (7) Any disputes related to demand of workers or employees shall be settled by tribunals formed
as per relevant act and such decision of tribunals shall be final.
No remuneration (8) Employees who do not perform their duties diligently may not be provided with the
remuneration.
9.4 CONTRACT OR SUB-CONTRACT MANUFACTURING AGREEMENTS (Section 50)
Contract or sub-contract Any industry registered and in operation as per prevailing laws may enter into contract or sub
manufacturing agreements (1) contract to manufacture goods, except their major project, or any goods or services required
for the industry.
Facilities to industry assisting Any industry, by fulfilling prescribed criterions, as per sub section 1, manufactures or
export oriented industry (2) produces services on prescribed quantity, under contract or sub contract, for export oriented
industries, such industries may be provided with exemption and benefit.
Other provisions (3) Other provisions relating to contract or sub contract agreements shall be as prescribed.
9.5 INDUSTRIAL AND INVESTMENT PROMOTION FUND (Section 51)
Formed by GoN (1) For the promotion of industries and investment in Nepal, Government of Nepal shall form
Industrial and Investment Promotion Fund.
Fund (2) The fund shall contain following amounts:
a) Amount received from Government of Nepal,
b) Amount received from National association, entities or persons,
c) Amounts remaining in Micro, Cottage and Small Industries Development Fund,
Venture Capital Fund, Technology Development Fund, Industrial investment
preservation and promotion fund, Sick Industries Revival Fund, Women
entrepreneurship Development Fund before the commencement of this act,
d) Amounts received from Foreign Government, Foreign association, entities or
persons under bilateral or multilateral agreements. (However, before receiving such
amounts permission form Finance Ministries shall be required.)
Use of fund (3) The fund maintained as per sub section 1 may be expended for following activities:
a) Micro, Cottage and Small Industries Development Fund
b) Technology Development Fund
c) Industrial Promotion Fund
d) Sick Industries Revival Fund
e) Women entrepreneurship Development Fund
Expenditure as per approved Expenditure of amounts of such fund as per sub section 3, shall be as per approved annual
annual budget (4) budget of the fund.
Operation & management (5) Other provisions relating to operation and management of such fund shall be as prescribed.
9.6 PROVINCE LEVEL INDUSTRIAL AND INVESTMENT PROMOTION FUND (Section 52)

Formed by Province For the promotion of industries and investment in Province Level, Province Government shall
Government (1) form Province Level Industrial and Investment Promotion Fund.
Operation & management (2) Other provisions relating to operation and management of such fund shall be as prescribed in
the province level laws.
Use of fund (3) The fund maintained as per sub section 1 may be expended for the activities specified in
section 51(3).
9.7 RESTRICTIONS ON PROVIDING DOUBLE FACILITIES (Section 53)
Restriction (1) Government of Nepal or province Government shall not provide double facilities, concessions
or rebates as per this act or other prevailing laws to any industry.
Information exchange (2) Any facilities, concessions or rebates provided by Government of Nepal shall be informed to
the Province level ministry looking after industries and also any facilities, concessions or
rebates provided by Province Government shall be informed to the Department.
9.8 CORPORATE SOCIAL RESPONSIBILITY (Section 54)
Corporate Social Any cottage or small industry having annual turnover more than NPR 15,00,00,000.00 (15
Responsibility (1) Crorers), medium or large industry shall allocate at least 1% of the annual profit to be utilized
towards corporate social responsibility.
Utilization as per annual plans The fund created for CSR shall be utilized on the basis of annual plans and programs in the
& budgets (2) prescribed sectors.
Report to GoN within 6 The progress report of the utilization of the fund collected for CSR shall be submitted to the
months (3) relevant government authorities within six months from expiry of the financial year.
Allowed for tax purpose (4) Amount allocated for CSR as per sub section1, shall be allowed to be deducted as expenditure
for income tax purpose.
9.9 INDUSTRIAL CORRIDOR, INDUSTRIAL GRAM OR INDUSTRIAL CLUSTER (Section 55)
Prescribed by GoN As notified by Government of Nepal in Official Gazette
9.10 PROHIBITION ON BUILDING RESIDENTIAL HOUSE OR OTHER HOUSE IN INDUSTRIAL AREAS

(Section 56)
Prohibition on building • No residential houses or other types of houses as a creation of residential society can be
Residential house or other built in the area notified by GoN as Industrial Corridor, Industrial Gram or Industrial Cluster
house in industrial areas and vice versa.
• If any person sustains loss due to above provision, GoN shall provide reasonable
compensation for that.
9.11 USE OF ELECTRONIC MEDIUM (Section 57)
Prescribed by Body for For the ease and simplicity of industrial registration and other all activities, the body for
Registration registration of industries may make provisions of use of electronic medium as per prevailing
laws.
9.12 USE OF AUTOMATIC ROUTE (Section 58)
Prescribed by GoN For the ease, simplicity and effortlessness of activities relating to industries administration
from industrial registration to cancellation of registration, the Government of Nepal may
implement automatic route by prescribing type of industry, nature of industry or investment
limits.

9.13 DELEGATION OF POWER (Section 59)
Delegation with power of Any industry or owner of any industry may delegate any person by notarized power of
attorney (1) attorney for the functions to be carried out by them..
Send copy to the body for A copy of such notarized power of attorney shall be submitted to the body for registration of
registration (2) industries and if deems necessary the body for registration may sought for the original copy
also
9.14 SPECIAL PROVISIONS FOR EXTENSION OF TIME OR RE-REGISTRATION (Section 60)
Application for extension, On commencement of this act, if any industry registered as per prevailing laws, due to expiry
once, privilege by this act (1) of time period for commencement of commercial production, operation or transactions or any
industry which was not able to commence its commercial production, operation or
transactions even within extended time provided as per prevailing laws, may, only once, under
this act, make an application for extension of time. Within 3 months of commencement of
this act, to the body for registration of industries.
Pay fine (2) On inquiry and examination of application pursuant to sub section 1, if the board for
registration is satisfied, it may grant extension of time, by following the prescribed procedures
after taking following delay fines:
Type of industry Delay Fine
Micro Rs. 5,000.00 for every year
Cottage Rs. 15,000.00 for every year
Small Rs. 15,000.00 for every year
Medium Rs. 50,000.00 for every year
Large Rs. 1,50,000.00 for every year
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Industrial Enterprises Act, 2076: Unofficial Translation for students purpose only

1.2 DEFINITIONS PROVIDED IN THE INDUSTRIAL ENTERPRISES ACT (Section 2)

S. No. Term Definition

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2.1 INDUSTRIES TO BE REGISTERED (Section 3)

2.2 APPLICATION FOR REGISTRATION (Section 4)

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s) Civil aviation, international airports

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2.3 GRANT REGISTRATION CERTIFICATE TO THE INDUSTRIES (Section 5)

2.4 APPEAL (Section 6)

2.5 MITIGATION OF NEGATIVE EFFECT ON ENVIREONMENT (Section 7)

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2.6 PERMISSION (Section 8)

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2.7 INFORMATION ABOUT COMMERCIAL PRODUCTION OR COMMENCEMENT OF TRANSACTIONS

2.8 INSPECTION AND SUPERVISION (Section 10)

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2.9 RELOCATION OF INDUSTRIES (Section 11)

2.10 CAPITAL INCREMENT, EFFICIENCY INCREMENT, OBJECTIVES ADDITION OR ALTER OBJECTIVES

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2.11 RETURNS TO BE SUBMITTED (Section 13)

2.12 INFORMATION ON CLOSURE OF INDUSTRIES (Section 14)

2.13 APPLICATION FOR CANCELLATION OF REGISTRATION OF INDUSTRIES (Section 15)

2.14 MANAGEMENT OF RECORDS AND REGISTERS (Section 16)

3.2 PERMANENT CAPITAL OF INDUSTRIES (Section 18)

3.3 NATIONAL PRIORITY INDUSTRIES (Section 19)

Annexure 9 1) Energy based Industries

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To make decisions on policies Number & Position Person

4.2 FUNCTIONS, DUTIES AND POWERS OF THE BOARD (Section 21)

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4.4 SECRECY (Section 22)

Type/ Nature of industry Facilities and concessions

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Any manufacturing industry with trainees (minimum 10 % of its total Allowable

5.2 FACILITIES AND CONCESSIONS RELATED TO CUSTOM DUTIES (Section 25)

Industry Facilities and concessions

5.3 OTHER FACILITIES AND CONCESSIONS TO MICRO INDUSTRIES (Section 26)

Industry Facilities and concessions

5.4 ADDITIONAL FACILITIES AND CONCESSIONS TO WOMEN ENTREPRENEURS (Section 27)

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Industry Facilities and concessions

Industry Facilities and concessions

5.6 FURTHER FACILITIES AND CONCESSIONS (Section 29)

Industry Further Facility

5.7 PROVISIONS RELATING TO LAND (Section 30)

Land to be purchased by Land should be purchased by industry itself.

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d) Industries providing employment to minimum 500 employees,

5.8 LAND TO BE MADE AVAILABLE ON LEASE (Section 31)

5.9 POSSESSION OF LAND IN EXCESS OF THRESHOLD LIMIT (Section 32)

5.10 GUARANTEE OF FACILITIES (Section 33)

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5.11 INDUSTRIES NOT TO BE NATIONALIZED (Section 34)

Prohibited (1) No Industry registered under this act shall be nationalized.

5.12 PROVISIONS RELATING TO INDUSTRIAL SAFETY (Section 35)

5.13 NO MISUSE OF FACILITIES AND CONCESSIONS (Section 36)

6.2 FUNCTIONS, DUTIES AND POWERS OF THE COMMITTEE (Section 38)

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7.2 CLASSIFICATION OF SICK INDUSTRIES (Section 40)