In order to promote the use of home-grown products, the government has made it mandatory for public bodies to include provisions to purchase such goods when inviting bids. The Council of Ministers, in a meeting held on December 13, approved the Directive for the Use of Domestic Products in Public Institutions 2081.' This directive requires government bodies to prioritize the purchase of domestic goods while procuring various items. It was endorsed upon the recommendation of the Ministry of Industry, Commerce, and Supplies (MoICS).

The Public Procurement Regulations 2064 already allow the purchase of domestic goods even if they are up to 15 percent more expensive. However, the new directive explicitly mandates the purchase of goods produced within the country.

MoICS Spokesperson Babu Ram Adhikari stated that the government is preparing to enforce the directive soon. Public bodies will be required to include provisions for purchasing domestic goods while inviting tender bids. The directive will come into effect only after its publication in the Nepal Gazette, although the publication date has yet to be finalized.

The directive specifies that employees and officials in public bodies must use uniforms produced by domestic industries where available. Similarly, programmes, symposia, and seminars organized by public bodies must utilize domestic products when feasible.

This directive builds upon the earlier ‘Directive on the Use of Domestic Products in Public Bodies 2071,’ which was approved by the Council of Ministers about a decade ago.

Rajesh Agrawal, president of the Confederation of Nepalese Industries, highlighted that making the use of domestic products mandatory in public bodies will significantly promote domestic production.

“The government is the largest buyer in any country. Using domestic products in all its offices will increase demand, boost industrial production, and create jobs. Additionally, it will enhance tax collection,” Agrawal told New Business Age. The Confederation has been running the 'Make in Nepal Swadeshi' campaign in collaboration with the Ministry of Industry, Commerce, and Supplies since June 24, 2021.

Domestic Goods Included in the Directive

The directive lists various categories of goods to be purchased by public bodies, including:

Stationery, Office Supplies, and Printing Materials

1. Products made from Nepali handmade paper.
2. Items like brown paper, pencils, dot pens, Nepali envelopes, notebooks, registers, tissue paper, diaries, copies, chalk, board markers, files, and file binding lace.
3. Conference-related items such as bags and shawls.
4. Raincoats.

Clothing, Accessories, and Gift Items

1. Clothing made from local raw materials like allo (Himalayan giant netttle), ketaki (crepe ginger), bamboo, banana fibers, and other natural fibers.
2. Wool-based items and products.
3. Dhaka fabric and Dhaka-based goods.
4. Pashmina products.
5. Jute-made products.
6. Uniforms, hats, shoes, belts, and other prescribed items for public body employees and officials.
7. Bags, badges, and other items for meetings or conferences.
8. Traditional handicrafts, woodwork, sculptures, paintings, and stone items.
9. Toys and decorative items.
10. Leather-made products.

Furniture, Furnishings, and Cleaning Supplies

1. Furniture made of wood, plywood, bamboo, amriso (broom grass), and reed.
2. Carpets, rugs, towels, sheets, curtains, mattresses, pillows, foam, and other furnishings.
3. Tablecloths, mats, flower pots, candles, incense sticks, and accessories.
4. Cleaning items such as phenol, soap, shampoo, room sprays, brooms, and mops.
5. Dustbins, buckets, and mugs.
6. Toilet paper.
7. Flower garlands, flowering plants, and potted plants.

Machinery and Equipment

1. Transformers (up to 63 MVA).
2. Items for small and micro hydropower projects (up to 2 MW).
3. Copper or aluminum binding wire.
4. Computer software.
5. Dry batteries.
6. Agricultural machinery and tools.
7. Aluminum conductors and cables (up to 1.1 kV).
8. PSC and STP poles.
9. Helmets.

Construction Materials

1. Cement, rods, and bricks.
2. Paints and related materials.
3. AAC blocks (lightweight bricks).
4. Aluminum profiles and prefab wall panels.
5. Rosin and turpentine oil.
6. Wood-based materials.

Agricultural and Food Products

1. Milk and milk products.
2. Eggs, fish, and meat products.
3. Refined oils, vegetables, and ghee.
4. Tea, coffee, cardamom, ginger, and spices.
5. Fruits and fruit-based products, including juices.
6. Mineral and purified drinking water (bottles or jars) and light beverages.
7. Wheat flour, biscuits, honey, herbal products, and plastic packaging films used for milk and ghee.