History of industry in Nepal – Complete Information

After the adaptation of globalization and liberalization in 1990 AD, the journey of industrial development has been started in Nepal. In 2049, foreign direct investment and technology transfer has been opened up in order to attract investment and technology in the Nepalese Industrial Sector. But the history of industry in Nepal has been begun in 1926 AD. This article discuss about the development of industry sector in Nepal.

The First Industry In Nepal

Biratnagar Jut Mill is the first industry in the history of industry in Nepal. It is established in 1936 AD (1993 BS).

Industrial Council had been formed in 1992 B.S. ,Company Act was introduced in 1993 B.S. and Biratnagar Jut Mill had been established in the same year.

Ramlal Golchha and Krishna Prasad Koirala took the initiative and established this industry with the participation of Radhakrishna Chamoriya (CEO of Shree Industries Pvt. Ltd.). This industry has covered 60 Bigha (15 Hector) land in Morang District.

The first trade union revolution started at Biratnagar Jut Mill in 2006/2007 BS. Former Prime Minister Girija Prasad Koirala and Man Mohan Adhikari started their political careers during that revolution.

If the industry runs at full capacity, 50 metric tons of Jut can be produced daily and 2000 will get direct employment. Unfortunately this industry is permanently closed now.

Read This Also : Problem of Agriculture In Nepal – Efforts, Gap, and Solutions

History of Industry in Nepal and Periodic Plan

Raghupati Jut Mill and Morang Sugar Mill was established in 2003 B.S. These two industry has grate role on the development of industry sector in Nepal.

Aa Nepal adopted Periodic Plan system, industrial development moved on accordingly.

1. First 5 year Periodic Plan (B.S. 2013-2018): Industries like Rice Mill in Tarai, Oil Mill are established. Industrial Development Center was formed.
2. Second 3 year Periodic Plan (B.S. 2019-2022): Company act and Corporation act issued. Balaju, Hetauda and Patan industrial are are established. Morover Janakpur Churot Karkhana, Birgunj Sugar Karkhana are also established.
3. Third 3 year Periodic Plan (B.S. 2022-2027): In this time period industries are established:
   • Harisiddhi Tyle Factory,
   • Baasbari Skin Factory,
   • Dairy Development Corporation,
   • Chiyaa Bikash Nigam
4. Forth 5 year Periodic Plan (B.S. 2027-2032): Industry Plan 2031 B.S. is issued.
5. Fifth 5 year Periodic Plan (B.S. 2032-2037):Mainly Hetauda Cement Factory is established and industrial areas are expanded more.
6. Sixth 5 year Periodic Plan (B.S. 2037-2042): Total industrial sector reached to 10. Various copy industries are established..
7. Seventh 5 year Periodic Plan (B.S. 2042-2047): Policy to increasing export from industrial product
8. Eighth 5 year Periodic Plan(B.S. 2049-2054): Industrial Policy, 2049 Industrial Business Act 2049 and Privatization Act 2050 are made which helped to promote this sector even more.
9. Nineth 5 year Periodic Plan(B.S. 2054-2059): Promoted industries sector with many provisions.
10. Tenth 5 year Periodic Plan(B.S. 2059-2064): Industrial sector faced challenges due to political instability and conflict.
11. Eleventh 3 year Periodic Plan(B.S. 2064-2067): New Industrial Policy, 2067 was made and issued.
12. Twelfth  3 year Periodic Plan(B.S. 2067-2070): Promoted industries sector with many provisions.
13. Thirteenth 3 year Periodic Plan(B.S. 2070-2073): Foreign Investment Policy 2071 is made and implemented.
14. Fourteenth  3 year Periodic Plan(B.S. 2073-2076): Planned to increase contribution of industry sector to GDP.
15. Fifteenth 5 year Periodic Plan(B.S. 2076-2081): Many provisions to promote this sector with strategies to increase contribution to national economy.

Industrial estate/area in Nepal

There are 11 industrial estates or areas in Nepal.

S.N	Name	Establishment Date B.S.	Area (Ropani)
1	Balaju Industrial Area, Kathmandu	2016	670
2	Hetauda Industrial Area, Makawanpur	2020	2829
3	Patan Industrial Area	2020	293
4	Nepalgunj Industrial Area, Banke	2030	233
5	Dharan Industrial Area, Sunsari	2029	202
6	Pokhara Industrial Area, Kaski	2031	501
7	Butwal Industrial Area, Rupandehi	2032	434
8	Bhaktapur Industrial Area, Bagmati	2035	71
9	Birendranagar Industraial Area, Surkhet	2038	90
10	Dhankuta Industrial Area, Dhankuta	2041	63
11	Gajendra Narayan Shingh, Saptari	2044	294

How many industries are in Nepal now?

On the basis of size the number of industries in Nepal are as follows:

Types	Number
Large industry	1272
Medium Industry	1983
Small Industry	5401

 

On the basis of Industry Nature number of industries in Nepal are as follows:

Types	Number
Agricultural and Forestry	514
Infrastructure	62
Information and Communication	88
Minerals	70
Service	2299
Tourism	1899

 

The total number of industries in Nepal are 8656 as of Falgun of 2078/79.

Conclusion

The history of industry in Nepal is a proud for us. The growth of industry sector in initial phase in Nepal was satisfactory. But now, stakeholders are not taking initiation for the industrial development.

All stakeholders should be proactive to identify the problem and possible solutions to reform this sector.