Industrial Enterprises Act, 2020

28. Special Provisions relating to Industries Operating in Industrial Zones: The Government of Nepal may make special arrangements regarding incentives, exemptions, facilities, or concessions for industries operating within industrial zones, industrial clusters, industrial corridors, and industrial villages. 29. Additional Facilities and Concessions: In addition to the exemptions, facilities, and concessions mentioned in Sections 24, 25, 26, 27, and 28, the following additional facilities and concessions may be given to the following industries:-

(ka) Forest-based industries may be provided with the right to use a specific forest area under the prevailing law on covenant or lease by prescribing necessary conditions.

(kha) No fee or royalty leviable under the prevailing law shall be charged on electricity produced by an industry for its own purposes.

(ga) If an industry produces surplus electricity for its own purposes and wishes to sell it, such electricity may be sold under the prevailing law at a rate mutually agreed upon, based on the quantity of electricity to be sold.

(gha) The Government of Nepal may provide additional facilities and concessions, by publishing a notification in the Nepal Gazette, to export-oriented industries, industries to be established in special economic zones or government or private industrial zones as prescribed.

(nga) For industries established with national priority or maximizing the use of domestic raw materials, labor, and skills, or by inventing technology or goods within Nepal, the Government of Nepal may, upon the recommendation of the Board, provide additional facilities and concessions by publishing a notification in the Nepal Gazette.

(cha) Based on the proportion of time without electricity supply, the Government of Nepal may provide an exemption on the demand charge imposed on the electricity tariff paid by the industry, according to the prescribed basis and by following the prescribed procedure.

(cha) To establish industries in very underdeveloped regions, the Government of Nepal may provide grants as seed capital to cooperatives, micro enterprises, cottage and small industries, as prescribed by publishing a notification in the Nepal Gazette.

(ja) Industries operated with foreign investment may be permitted to import goods produced by the parent company located abroad for a certain period, for the purpose of producing new goods and market development and promotion, subject to the prescribed conditions and limits.

(jha) For productive industries as per sub-section (2) of Section 17, except for tobacco and alcohol industries, agriculture and forest produce-based industries, and mineral industries, the Government of Nepal may provide incentives, exemptions, facilities, or concessions as prescribed.

(nya) Micro, cottage, and small industries may be granted exemption from customs duty leviable on the import of new technologies such as machinery, equipment, and tools required for enhancing the capacity of their industry.

(ta) The Government of Nepal may make special arrangements regarding incentives, exemptions, facilities, or concessions for industries operating within industrial zones, product-specific zones, and industrial villages.

(tha) The Government of Nepal may provide additional incentives, exemptions, facilities, or concessions to industries to be established in very underdeveloped, underdeveloped, and less developed regions.