Govt Classifies 20 Industrial Estates, SEZs, and Cable Car Initiatives as National Priority Projects

The government has decided to grant national priority status to industrial villages, industrial estates, and special economic zones (SEZs) that are currently in the planning stage or inactive state. A Cabinet meeting held on August 25 decided to grant national priority status to 20 such projects.

According to Jitendra Basnet, spokesperson for the Ministry of Industry, Commerce, and Supplies, the decision will ease challenges related to land acquisition and implementation of industrial infrastructure. He explained that projects must first be recognised as a national priority in order to secure land for development. While recommendations are made regularly, this is the first time a large number of projects have been included at once.

Basnet further clarified that the decision will help revive previously announced but inactive industrial villages, estates, and SEZs. “By law, land acquisition, compensation, and use of forest areas can only move forward once a project has national priority status. Many projects were stalled because of these requirements, and bringing land under government ownership was difficult without this classification,” he said. The ministry had repeatedly requested the decision, which the Cabinet has now endorsed.

The provision will also allow stalled projects to move ahead where land and forest access rights were unavailable or environmental impact assessments had not been completed. Previously, the National Planning Commission was responsible for designating national priority projects. Now, under the new arrangement, the Cabinet will make the determination based on recommendations from the concerned ministries. Officials expect this shift to resolve long-standing issues, particularly those related to forest clearances.

The August 25 Cabinet meeting specifically designated 20 projects as national priority projects, including industrial villages, industrial estates, SEZs, dry ports, petroleum pipelines, and privately operated cable cars.

The government has already announced more than 100 industrial villages and has pledged to establish industrial estates and SEZs in all seven provinces. However, only a few have become operational so far, with most halted due to land acquisition and compensation disputes.

This change follows amendments introduced through the Bill to Amend Some Nepal Acts (2082). The revised Forest Act 2019, Article 42, now allows national priority projects, Investment Board–approved plans, national pride projects, or mineral-based industries meeting government criteria to use forest areas if no alternatives exist. Such use must comply with environmental assessments showing no significant adverse impacts. Under this legal provision, the Cabinet may grant approval for projects to operate on designated forest land as necessary.