New directive prioritizes domestic materials in govt-funded projects

Himal Press 16 Oct 2026
New directive prioritizes domestic materials in govt-funded projects

KATHMANDU: The government has approved a new directive prioritizing domestic products and technologies in public procurement and infrastructure development.

The directive aims to promote greater use of concrete roads and locally sourced construction materials, where technically suitable, instead of imported bitumen-based asphalt, according to the Ministry for Infrastructure Development.

The Directive on the Promotion and Use of Domestic Products in Public Procurement, 2026, which has already been approved by the government, introduces measures to reduce dependence on imported materials, and expand the use of domestic products, local resources and homegrown technologies in government-funded projects.

As per the directive, public agencies must use locally produced goods and materials whenever they are available and meet prescribed quality and technical standards.

It intends to end infrastructure designs that require foreign materials despite the availability of suitable domestic alternatives. Roads, bridges and buildings must be designed to maximize the use of locally available materials and technologies, the ministry said.

For road construction, the government has prioritized concrete roads made with domestically produced cement, local stone and other indigenous construction technologies as alternatives to asphalt roads based on imported bitumen, provided they are technically appropriate.

The directive also calls for greater use of domestic marble, stone, slate and tiles instead of imported granite and other finishing materials in government buildings. Likewise, it prioritizes domestic alternatives for decoration, electrical installations, furniture and sanitary fittings.

However, the policy does not permit compromising quality, safety, durability or technical standards in the name of promoting domestic products.

The directive prohibits public agencies from preparing technical specifications targeting particular foreign brands, manufacturing locations or countries of origin when suitable domestic alternatives are available.

It also requires domestic products and technologies to be considered from the earliest stages of project preparation, including feasibility studies, designs, detailed project reports, cost estimates and tender documents.

Mandatory provisions for using domestic materials must be incorporated into tender documents, technical specifications, bills of quantities and procurement contracts.

Similarly, the directive assigns responsibility for ensuring the use of domestic materials to heads of public agencies, technical personnel and consultants preparing project studies and designs, and officials approving them.

Contractors and suppliers found passing off foreign products as domestic, using counterfeit brands or labels, or providing false information about manufacturing locations could face rejection of their supplies, suspension of payments, blacklisting and legal action.

 

Published On: 16 Oct 2026

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