The establishment of industrial districts in Nepal began in 2016 BS with the foundation laying of Balaju Industrial District by the Nepalese government in cooperation with the United States government. The objective of such districts is to provide the industrial sector with easy access to basic industrial infrastructure by bringing together land, buildings, access roads, electricity supply, water, drainage and other facilities at one spot. Later, similar districts started coming up in other parts of the country in cooperation with various friendly counties. The idea was to bring about an economic balance among the different geographic regions, besides promoting the use of local resources like investment, labour, skills and raw materials for the country's industrialization.
Industrial District Management Limited (IDML) came into being on Shrawan 1, 2045 B.S., according to Company Act, and systematic manner. As a provider of services to industries, it is thus playing an important role in the government's policy of promoting industrial development. This company also carries out feasibility studies to establish new industrial districts.
At present, there are ten industrial districts in different parts of the country. The government's policy is to open at least one large industrial district in each province and, accordingly, six new districts have already been announced. Their detailed project reports (DPRs) and physical infrastructure (access roads and boundary walls) are currently being developed and are at various stages of completion. Activities like prefeasibility/feasibility studies, DPRs. and environmental impact assessments for such districts will be announced once the formalities are completed.
Company's Organizational Structure
A Board of Directors looks after the policy aspects of the company and ensures smooth operation of its management. The following members make up the Board:
1. Appointee of government of Nepal Chairperson
2. Representative of Ministry Industry, commerce & supply Member
3. Representative of Ministry of Finance Member
4. Representative of Ministry of Energy Member
5. President or representative of Federation of Industries
in Nepal Industrial Estate Member
6. General Manager, IDML Member–Secretary
For its day –to-day operations, IDM has set up a Department of Planning and Development, a Department of Operations, a Department of Administration and Finance and an internal Audit Section at its Central Office. IDM's own management is being looked after by qualified and experienced technical and administrative professionals. Depending on the size of the district and workload. Level 7 to Level 9 staff run the various district management offices as office head, managers and district managers.
Main Activities of IDM
- To provide developed land, building, electricity, water. Access roads, drainage and other necessary industrial infrastructure to industries established in the industrial district.
- To carry out feasibility studies and see if new industrial districts are pre-feasible, with the objective also to continue establishing new ones for further industrialization.
- To collect information, conduct studies and carry out analyses on feasible projects studies and carry out analyses on feasible projects within the district and sell such information and publish them.
- To conduct the requisite research/studies for the promotion of the industrial districts: to participate in national and international exhibitions/fairs for industrial promotion: and to open the way for the industries themselves to participate.
- To study the possible impacts of industrial, commercial and economic policies on industrial.
- To provide suggestions, advice an d consultations to the enterprise in the districts regarding cost-effective and beneficial operation.
- To encourage establishment of industrial districts by the private sector, through popular participation or as cooperatives and cooperate with them.
Services and Facilities Provided by District Management Offices
Industrial district management offices in different parts of the country have been providing basic infrastructure like land, buildings, warehouse,electricity, water, drainage and other necessities required for establishing and operating industries within the industrial districts. Banking and postal services, workshops, health clinics, children's daycare centres, canteens, libraries, exhibition halls, guest houses and other services like security and sanitation are also made available. Additional services have been made available with the participation of industries in the districts. For example, and integrated Waste water Treatment Plant has been set up in Hetauda Industrial Estate under Environment Sector Programme Support (ESPS) launched with Danish government aid. The Hetauda plant, managed and operated by a separate management committee, was set up with the participation of industrialists and led by the district management office. The objective being to keep the industrial districts environmentally clean, the industrial waste water is to be released only after treatment.
For industrial security, and in accordance with a government's decision, the industrial districts are manned by a unit of the industrial security Force, an arm of the Armed Police Force. The unit is either battalion strength or company sized, or just a camp or a post, according to requirement. Those industrial districts yet to have similar security units will also have them in time.