Federalism Implementation

Madesh takes charge of industry regulation

Himal Press 28 Jun 2026
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Madesh takes charge of industry regulation

KATHMANDU: The Madhesh Province Government has begun preparations to provide services such as registration, renewal and regulation of domestic industries with fixed capital of up to Rs 250 million within the province itself.

This development follows the federal government’s decision to transfer administrative authority, including registration, renewal, regulation, and oversight of such industries, to provincial governments. With this handover, the Madhesh Province Government has started delivering these services at the provincial level.

The Constitution of Nepal, 2015, clearly delineates powers among the federal, provincial and local governments. The Industrial Enterprises Act, 2016, already provides for assigning administrative responsibility for certain categories of industries to provincial governments.

Despite this legal provision, implementation, however, had been delayed for more than seven years. As a result, entrepreneurs were compelled to travel to the Department of Industry in Kathmandu for routine administrative services, leading to delays, additional costs and bureaucratic complications.

Following the transfer of records of 188 industries under Madhesh Province from the Department of Industry, services related to these industries will now be provided from within the province, according to Reena Sah, acting director of the Department of Industry under the province’s industry ministry.

“The files of the industries have already been handed over to the department,” said Sah. “We are currently reviewing the files transferred from the federal Department of Industry and preparing to begin service delivery.”

She added that, in the first phase, the office will start services such as registration, renewal, and record updates, and later expand to provide services through an online system.

 

Published On: 28 Jun 2026

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