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Industrial Centers
Nepal has made good progress in recent
years in the development and improvement of basic
infrastructure facilities required for an accelerated
program of economic and social development. Efforts are
continuing to further improve various facilities required
for the development of trade, industry and commerce to bring
them in line with modern international standards. The urban
centres of Kathmandu valley (Kathmandu, Lalitpur, Bhaktapur),
Pokhara and the industrial towns in the Terai region,
Biratnagar, Janakpur, Bhairahawa, Rajbiraj, Birgunj, Butwal,
Nepalgunj and Hetauda offer good facilities for the
establishment of medium and large scale industries.
Zoning of
Industrial Location

His Majesty's Government has specified
four zones for the purpose of granting permission or
registration of new industries in and out of the
municipalities including Kathmandu valley. It is hoped that
this zoning of industrial location will facilitate planned,
systematic and healthy industrial development by reducing
industrial pollution, and over utilization of infrastructure
facilities. Likewise, this zoning will also facilitate the
balanced economic development of the country through
diversification of investment flows in the underdeveloped
and less developed areas of the kingdom. These four zones of
industrial location are as follows :
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Zone 1 Municipal areas of Kathmandu valley.
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Zone 2 Outside the municipal areas of Kathmandu
valley.
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Zone 3 Municipal areas of Biratnagar, Dharan,
Pokhara, Birgunj, Janakpur, Siddarthanagar, Butwal and Nepalgunj.
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Zone 4 Municipal areas other than those
mentioned in zone3.
Each zone has been clearly specified as to what
type of industries is allowed to establish and operate. This policy
has been adopted to ease and facilitate new investors so that they are
encouraged to start their undertakings without difficulties.

Industrial Districts
With a view to boost industrialization by setting
up various physical infrastructures and facilities necessary for the
establishment of industrial enterprises the Government has established
11 industrial districts in various regions of the country. These are
in Balaju, Patan, Bhaktapur, Hetauda, Pokhara, Dharan, Butwal,
Nepalgunj, Birendranagar, Rajbiraj and Dhankuta.
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