Govt Slashes SEZ Rent to Rs 5 Per Square Metre a Month

The government has decided to scrap the Special Economic Zone (SEZ) Operational Standards and Procedures, 2071 BS, and reduce the monthly rental rate for SEZ facilities from Rs 20 per square metre to Rs 5.

According to the state-run national news agency RSS, Education Minister Mahabir Pun confirmed that the Cabinet meeting on Sunday endorsed the decision.

The Special Economic Zone was set up to promote exports and encourage industries to produce goods that are in high demand in foreign countries.

Despite showing interest, industrialists had been raising concerns regarding high rent, export difficulties at the border, and challenges in securing loans.

Initially, the law required 75 percent of the goods or services produced in the SEZ to be exported. This provision was lowered to 60% and further amended to allow industries to export at least 15% of production initially and 30% in subsequent years from the start of production.

As the SEZs failed to attract industries, the government slashed the rental fee in order to address the concerns of the industrialists.

The meeting also approved accepting €23.58 million in assistance from the European Union for the Green and Reliable Energy for Economic Prosperity in Nepal project, RSS further reported.

Likewise, the Cabinet endorsed the Electricity Regulatory Commission’s membership in South Asia for Infrastructure Regulation.

The meeting agreed to adjust and add positions in the Nepal Police by forming an organisation and management survey committee. It also decided to arrange treatment and relief for those injured during the Gen-Z movement of September 8 and 9. The government will deploy 10 volunteers—alongside a joint secretary and deputy secretary—at its help desk and provide each volunteer Rs 15,000 per month for four months as lunch expenses.

Deputy Inspector General of Police Ishwar Karki has been promoted to Additional Inspector General of Police. The Cabinet also decided to recommend that the President issue the Land Ordinance, Ninth Amendment 2022.

Additionally, the government approved 37 authorised-level projects under the Ministry of Forest and Environment for integrated land-perimeter planning of protected areas and biological corridors in the fiscal year 2025/26. – With inputs from RSS