the border with India and ini!

ated the basic physical infrastructure Current status SEZs in Nepal:

development works. A study rela!ng to the prospects of poten!al 1) Bhairahawa Sez:
industries that can be set up inside the zone and its management Loca!on :- Rupandehi district , Bagaha VDC, Ward No 7
and opera!on modali!es was also conducted. This study has Area of land :- 36.8 ha
Present status :- At the phase of comple!on
iden!"ed 15 varie!es of poten!al industries that can be set up 2 ) Simara SEZ:
in the zone. They are: Food products, herbal products, leather Loca!on:- Bara district , Simara
products, garments, handmade paper products, handicra#s, metal Area of Land:- 564 ha approx.
Present Status:- Upgrading of 2km long approach road, Boundary wall under construc!on,
products, sports wears, jewelry, plas!c products, hosiery products,
3) Panchkhal SEZ :
assembled electrical and electronics products, electrical/electronic Loca!on :- Hokse V.D.C, Panchkhal 3 km. east from Panchkhal Bazaar in Kavrepalanchowk district.
parts and components, IT. Moreover, the products iden!"ed by NTIS Area of land :- 50 ha. approx.
like ginger, instant noodles etc are also included. Present status :- Feasibility study completed, Environmental Impact Assessment Ongoing, land acquired
4) Biratnagar SEZ :
The current status of the Bhairahawa SEZ is given in following table. Loca!on :- Amaduwa V.D.C of district Sunsari and Biratnagar Sub-Metropoli!an city , Morang
About 3 K.M. west from Rani Customs in Biratnagar
Area of land :- 200 ha. approx
Undergoing Work Completed Work Remaining works
Present status :- Feasibility study completed and land acquis!on work on-going
Parking area development, Water Supply, Road, Tele- Weighing Bridge, 5) Kaspilvastu SEZ:
Strom Water Side Drain, Site communica!on, Electricity, Petrol Pump Loca!on :- Sauraha V.D.C , Kapilvastu 20 km. East from Krishnanagar Customs Point.
Development, Construc!on Drainage, Land Development, Area of Land :- 64 ha. approx.
of Generator House Service Building, Administritave Present status :- Feasibility study completed.
Building, Security Checkposts, 6) Jumla SEZ:
Treatment Plant Loca!on:- Pandugupha V.D.C, Jumla 1.5km. North from Nagma-Mugu road .
Area of Land :- 47 ha. approx.
2. Simara SEZ: Present status :- Feasibility study completed , Approach Road is under construc!on
7) Dhangadi SEZ :
GoN has selected Simara and its vicinity for establishment of a SEZ.
Loca!on :- Shreepur V.D.C , Haraiya, 3.8 km north of Khu!ya along East West highway.
It is one of the main industrial city of the na!on, which lies in the Area of Land:- 180 ha. approx.
Central Development Region of Nepal and is about 270 km. from Present Status:- Feasibility study completed.
Kathmandu by road. 8) Nuwakot SEZ:
Loca!on:- Ratmate, Jilling
Signi"cant numbers of export oriented industries of various kinds Area of Land:- 70 ha. approx.
have been established in Parsa, Birgunj and its vicinity. Hetauda Present status:- Pre-feasibility study completed
Industrial District (HID) in Hetauda is only about 40 km. from Birgunj 9) Nepalgunj SEZ:
city. Fer!le land and existence of numerous irriga!on schemes Loca!on:- Naubasta VDC
have further enhanced the prospect of agro-based industries in Area of Land:- 348 ha. approx.
Parsa district and its vicinity. At present industrial products such as Present Status:- Pre-feasibility study completed
10) Jhapa SEZ:
readymade garments, woolen carpets, pashmina, woolen garments, Loca!on:- Ratuwamai Forestry Land,Topganchhi V.C.D Ward no. 5, district Jhapa
handicra#s, medical herbs, precious and semiprecious stones and Area of Land:- 300 ha. approx.
ornaments, leather goods, handmade papers, co$on towels and Present Status:- On-going Feasibility study but now under considera!on.
clothes, agro products (fruits, vegetables etc.) are being exported to 11) Dhanusha SEZ:
India and other countries. Loca!on:- Umaprempur V.D.C
Area of Land:- 55 ha approx.
Since Inland Container Depot (ICD) is constructed at Birgunj with Present Status:- Feasibility Study on-going
broad gauge railway line connec!on to the Indian railways, Birgunj 12) Rautahat SEZ:
has the best opportunity to send the products to the di%erent ci!es Loca!on:- Jhunkhunwa V.D.C
of India and third countries as well as to import raw materials from Area of Land:- 106 ha. Approx.
there. Present Status:- Feasibility Study on going
13) Siraha SEZ:
The following table shows the current status of Simara SEZ Loca!on:- Gobindapur V.D.C
Area of Land:- 106 ha. Approx.
Undergoing Work Completed Work Present Status:- Feasibility Study on going
14) Gorkha SEZ:
Boundary Wall Construc!on Feasibility Study, Master Plan of Block A, Loca!on:- Deurali VDC
Upgrading of 2km long approach road Area of Land:- 60 ha. Approx.
Present Status:- Feasibility Study on going
Background
Export industry sector is a major driving force for the Nepalese
economy. As the na!onal investment capacity is low, signi"cant
expansion of the export industry depends on the a$rac!on of
foreign investment bringing in technology, marke!ng exper!se and
capital.
Nepal a#er being a member of WTO, must li# its capacity in
economic front to sustain and move forward through the highly
compe!!ve world economic market. Promo!on of export based
industries and diversi"ca!on of export market are the major factors
which can contribute signi"cantly to the development of economic
ac!vi!es and thus to the overall upli#ment of the living standard of
the people.
Government of Nepal (GoN) has adopted the concept of Special
Economic Zone (SEZ) to a$ract foreign and na!onal investors
to invest and establish industrial and business units, which will
contribute in increased promo!on of export .
SEZ refers to a totally commercial area specially established for
the promo!on of foreign trade. A Special Economic Zone is a
geographical region that has economic laws more liberal than a
countrys typical economic laws. Usually the goal is &ourishment
in foreign investment. Moreoever, SEZs are speci"cally delineated
enclaves treated as foreign territory for the purpose of industrial,
service and trade opera!ons, with relaxa!on in customs du!es and
a more liberal regime in respect of other laws, foreign investments
and other transac!ons.
Concept of Special Economic Zone (SEZ)
Special Economic Zone (SEZ) is the advanced concept of Export
Processing Zone, and is also called the 'Free Trade Zones' which
includes Export Processing Zones, Special Trade Zones, Tourism-
Entertainment Zones, Informa!on and Technology Parks, Banking
etc. There is a likelihood of developing, opera!ng and maintaining
SEZ on a Public Private Partnership (PPP) model also.
The main objec!ves of crea!ng 'Special Economic Zone (SEZ) are:
To develop compe!!ve capacity of export oriented goods
and services in the interna!onal market.
To a$ract Foreign Direct Investment (FDI).
To a$ract domes!c and foreign capital and advanced state
of-the-art technology by providing appropriate facility for
the industry through one door.
To widen the export trade all over the world.
Investment on land, infrastructures development and maintenance
by the government and investment by domes!c and foreign
investor/entrepreneurs for se*ng up units in the zones and
taxes exempted are the costs to the na!on while labor return,
rental of land and buildings, net income of SEZ administra!on and
suppor!ng agencies including u!li!es and taxes collectable are
bene"ts to the na!on.
The investors in SEZ are generally granted permission and
administered in all respect of export and import under strictly
simpli"ed +One Window Policy+ or one stop service. They have
liberal tax regime with exemp!on to varying degrees in income tax,
excise duty, VAT and other taxes and du!es. They have facili!es of
repatria!on of investment, immigra!on, banking, export-import
facility, foreign workers employment etc. All relevant services such
as custom, banking, insurance, police, "re, medical etc. are at the
door. SEZs are governed by liberal produc!on oriented labor law
with policy of forbidding union and strikes. Instead, the labors have
wages much higher than outside SEZs, "xed working period and
liberal extra bene"ts and allowances.
Industrial Policy 2010: The Industrial policy, 2010 has been issued
having the salient feature where export oriented industries and
industries based in export promo!on house and Special Economic
Zones are en!tled to get declared facili!es and assistance on customs
duty, excise duty and VAT. Industries established in Special Economic
Zone are en!tled to get the declared income tax exemp!ons, VAT
related facili!es and assistance, and exemp!ons on customs duty
and local tax.
Vision: Promo ng Special Economic Zone (SEZ) in Nepal as a totally
commercial area specially established for the promo on of foreign
trade that has economic laws more liberal than a countrys typical
economic laws a"rac ng both: foreign and domes c investment.
Also develop SEZ as a delineated enclave treated as foreign territory
for the purpose of industrial, service and trade opera ons, with
relaxa on in customs du es and a more liberal regime in respect of
other levies, taxa on, foreign investments and other transac ons.
Mission: Establish and opera!onalize SEZ: Achieve steady
improvements in the establishment by:
Proposing measures to create a steadily improving
investment friendly environment
Removing and simplifying outdated unnecessary
procedures, approvals and legisla!on
Facilita!ng greater private sector role in SEZ development
for opera!on and development
Achieving mission and vision
A!rac"ng FDI: As one stop agency which facilitates and support
local and foreign investors in both manufacturing, and services
sectors as they move up the value chain to achieve higher
sustainable returns and seek out new opportuni!es.
Growing industry ver"cals: While Nepal may be a regional
a$rac!on in various areas, we have to focus on expanding and
extending exis!ng industry ver!cals. Exploring new growth
areas will contribute towards crea!ng good bond and sustaining
our compe!!veness.
Enhancing business environment: while interac!ng with
investors and promo!ng investments, we have to provide
feedback to other government agencies to ensure that
infrastructure and public services remain e9cient and cost
compe!!ve.
Special Economic Zone Development Committee (SEZDC)
Special Economic Zone Development Commi$ee(the then Special
Economic Zone Project) was established on 206;/10/1; (Feb. 11,
2013) under Ministry of Industry to prepare the SEZ law and
relevant rules and regula!ons, to conduct the pre-feasibility and
feasibility studies for establishment of SEZ in di%erent areas of
the country, and to construct required infrastructure in SEZ areas,
throughout Nepal. The SEZ Development Commi$ee was formed
under the SEZ Forma!on order 206; B.S.(2013).
Presently, SEZDC is engaged in helping and assis!ng in the prepara!on
of policy formula!on, making of special law, rules and regula!ons
and project proposals. It is also responsible for preliminary site
iden!"ca!on, technical and environmental feasibility study, "nancial
viability of the sites iden!"ed and the infrastructure development
works in Bhairahawa SEZ and Simara SEZ.
Special Economic Zones Under Construction
Inspired by the success of Export Processing Zone (EPZ) in Taiwan,
Bangladesh and Sri Lanka, Nepal Government conducted a feasibility
study of EPZ in 2000. The feasibility study recommended di%erent
loca!ons such as Bhairahawa, Birgunj, Biratnagar etc as feasible
places to establish SEZ on the basis of interna!onal demand,
na!onal and local compara!ve advantages, loca!ons of ICDs and
other infrastructures. Government of Nepal, in 2000, declared to
establish EPZ in Bhairahawa. In 2004, three more places Simara,
Panchkhal and Nuwakot were declared as Special Economic Zone.
The Government in 2008/0; budget speech announced that the
SEZs would be established in Dhanusha, Dhangadhi and Jumla. By
now 14 di%erent loca!ons have been declared to be developed as
SEZ.
The current status of SEZs (under construc!on) are as follows:
1.Bhairahawa SEZ
(Infracture development in Bhairahawa SEZ)
Bhairahawa SEZ lies in Rupandehi district of the Western
Development Region of Nepal < is about 280 kilometers from
Kathmandu. GoN acquired 36.8 ha. of land to develop EPZ near