According to constitutional provisions, the Madhes Province Government has the authority to manage industries with investments of up to Rs 500 million. However, files of industries established prior to the formation of the province remain stuck in federal-level departments under the Ministry of Industry, Commerce and Supplies, creating complications in their renewal and operation.
Madhes Province Minister for Industry, Commerce and Tourism, Basanta Kushwaha, said delays in transferring authority from Singha Durbar to the provinces have caused disorder and difficulties for industries. “The lack of documents has created problems in renovation, relocation, fines, and other industrial activities,” he said. Minister Kushwaha has submitted a seven-point memorandum to Union Minister for Industry, Commerce and Supplies Damodar Bhandari, calling for urgent action. He emphasized that the delay in implementing the powers guaranteed by the constitution has placed additional burdens on both the provincial government and industrialists in Madhes.
As per Sub-section 2 of Section 4 of the Industrial Business Act, 2019, registration, capital increases, relocation, and related activities for industries within Madhes Province (excluding those specified in Sub-section 1 of Section 4 of the 2010 Act) should fall under provincial jurisdiction. While Madhes Province has established an office of the Department of Industries in Birgunj, the Federal Department of Industries in Tripureshwor continues to handle much of the work. Minister Kushwaha noted that the federal government’s failure to transfer files on time has seriously hindered provincial performance, forcing industrialists to travel to Kathmandu for tasks that should be managed locally.
The memorandum further demands the transfer of industry files with fixed capital up to Rs 500m to the province. “Not only will this make our offices more effective, but it will also ensure employees have sufficient work,” Kushwaha stated. He also called for delegating environmental oversight of sand processing and crusher industries to the province, as well as inspection and enforcement authority regarding pollution from large industries—about 100 of which operate in Madhes Province.
Other demands include strengthening staff capacity in industrial administration, establishing startups and incubation centers, and creating mechanisms for sharing sectoral knowledge. Minister Kushwaha also stressed that exemptions under the Federal Economic Act should be granted based on recommendations from the provincial ministry.
In addition, the province has requested the transfer of responsibilities for special economic zones, industrial zones, industrial villages, export promotion zones, and IT parks. Madhes currently hosts the Simara Special Economic Zone and the Gajendra Narayan Singh Industrial Zone.
Responding to these concerns, Federal Minister for Industry, Commerce and Supplies Damodar Bhandari said efforts to transfer constitutionally mandated powers to the provinces will move forward soon. “We will hold discussions with the commerce ministers of all seven provinces and take the work ahead,” he said.
