the border with India and ini!ated the basic physical infrastructure Current status SEZs in : development works. A study rela! ng to the prospects of poten! al 1) Bhairahawa Sez: industries that can be set up inside the zone and its management • Loca! on :- , Bagaha VDC, Ward No 7 • Area of land :- 36.8 ha and opera! on modali! es was also conducted. This study has • Present status :- At the phase of comple! on iden! fi ed 15 varie! es of poten! al industries that can be set up 2 ) Simara SEZ: • Loca! on:- , Simara in the zone. They are: Food products, herbal products, leather • Area of Land:- 564 ha approx. • Present Status:- Upgrading of 2km long approach road, Boundary wall under construc!on, products, garments, handmade paper products, handicra# s, metal 3) Panchkhal SEZ : products, sports wears, jewelry, plas! c products, hosiery products, • Loca! on :- Hokse V.D.C, Panchkhal 3 km. east from Panchkhal Bazaar in Kavrepalanchowk district. • Area of land :- 50 ha. approx. assembled electrical and electronics products, electrical/electronic • Present status :- parts and components, IT. Moreover, the products iden! fi ed by NTIS like ginger, instant noodles etc are also included. Feasibility study completed, Environmental Impact Assessment Ongoing, land acquired 4) Biratnagar SEZ : The current status of the Bhairahawa SEZ is given in following table. • Loca! on :- Amaduwa V.D.C of district Sunsari and Biratnagar Sub-Metropoli! an city , Morang About 3 K.M. west from Rani Customs in Biratnagar • Area of land :- 200 ha. approx Undergoing Work Completed Work Remaining works • Present status :- Feasibility study completed and land acquis! on work on-going 5) Kaspilvastu SEZ: Parking area development, Water Supply, Road, Tele- Weighing Bridge, • Loca! on :- Sauraha V.D.C , Kapilvastu 20 km. East from Krishnanagar Customs Point. • Area of Land :- 64 ha. approx. Strom Water Side Drain, Site communica! on, Electricity, Petrol Pump • Present status :- Feasibility study completed. Development, Construc! on Drainage, Land Development, 6) Jumla SEZ: of Generator House Service Building, Administritave • Loca! on:- Pandugupha V.D.C, Jumla 1.5km. North from Nagma-Mugu road . Building, Security Checkposts, • Area of Land :- 47 ha. approx. Treatment Plant • Present status :- Feasibility study completed , Approach Road is under construc! on 7) Dhangadi SEZ : • Loca! on :- Shreepur V.D.C , Haraiya, 3.8 km north of Khu! ya along East West highway. 2. Simara SEZ: • Area of Land:- 180 ha. approx. • Present Status:- Feasibility study completed. GoN has selected Simara and its vicinity for establishment of a SEZ. 8) Nuwakot SEZ: It is one of the main industrial city of the na! on, which lies in the • Loca! on:- Ratmate, Jilling • Area of Land:- 70 ha. approx. Central Development Region of Nepal and is about 270 km. from • Present status:- Pre-feasibility study completed Kathmandu by road. 9) Nepalgunj SEZ: • Loca! on:- Naubasta VDC Significant numbers of export oriented industries of various kinds • Area of Land:- 348 ha. approx. • Present Status:- Pre-feasibility study completed have been established in Parsa, and its vicinity. Hetauda 10) Jhapa SEZ: Industrial District (HID) in Hetauda is only about 40 km. from Birgunj • Loca! on:- Ratuwamai Forestry Land,Topganchhi V.C.D Ward no. 5, district Jhapa • Area of Land:- 300 ha. approx. city. Fer! le land and existence of numerous irriga! on schemes • Present Status:- On-going Feasibility study but now under considera! on. have further enhanced the prospect of agro-based industries in 11) Dhanusha SEZ: Parsa district and its vicinity. At present industrial products such as • Loca! on:- Umaprempur V.D.C • Area of Land:- 55 ha approx. readymade garments, woolen carpets, pashmina, woolen garments, • Present Status:- Feasibility Study on-going handicra# s, medical herbs, precious and semiprecious stones and 12) Rautahat SEZ: • Loca! on:- Jhunkhunwa V.D.C ornaments, leather goods, handmade papers, co$ on towels and • Area of Land:- 106 ha. Approx. clothes, agro products (fruits, vegetables etc.) are being exported to • Present Status:- Feasibility Study on going 13) Siraha SEZ: India and other countries. • Loca! on:- Gobindapur V.D.C • Area of Land:- 106 ha. Approx. Since Inland Container Depot (ICD) is constructed at Birgunj with • Present Status:- Feasibility Study on going broad gauge railway line connec! on to the Indian railways, Birgunj 14) Gorkha SEZ: has the best opportunity to send the products to the diff erent ci! es • Loca! on:- Deurali VDC • Area of Land:- 60 ha. Approx. of India and third countries as well as to import raw materials from • Present Status:- Feasibility Study on going there. The following table shows the current status of Simara SEZ

Undergoing Work Completed Work Boundary Wall Construc!on Feasibility Study, Master Plan of Block A, Upgrading of 2km long approach road Background The investors in SEZ are generally granted permission and Special Economic Zone Development Committee (SEZDC) administered in all respect of export and import under strictly Export industry sector is a major driving force for the Nepalese simplified 'One Window Policy' or one stop service. They have Special Economic Zone Development Commi$ ee(the then Special economy. As the na! onal investment capacity is low, signifi cant liberal tax regime with exemp! on to varying degrees in income tax, Economic Zone Project) was established on 2069/10/19 (Feb. 11, expansion of the export industry depends on the a$ rac! on of excise duty, VAT and other taxes and du! es. They have facili! es of 2013) under Ministry of Industry to prepare the SEZ law and foreign investment bringing in technology, marke! ng exper! se and repatria! on of investment, immigra! on, banking, export-import relevant rules and regula! ons, to conduct the pre-feasibility and capital. facility, foreign workers employment etc. All relevant services such feasibility studies for establishment of SEZ in diff erent areas of Nepal a# er being a member of WTO, must li# its capacity in as custom, banking, insurance, police, fi re, medical etc. are at the the country, and to construct required infrastructure in SEZ areas, economic front to sustain and move forward through the highly door. SEZs are governed by liberal produc! on oriented labor law throughout Nepal. The SEZ Development Commi$ ee was formed compe! ! ve world economic market. Promo! on of export based with policy of forbidding union and strikes. Instead, the labors have under the SEZ Forma! on order 2069 B.S.(2013). industries and diversifi ca! on of export market are the major factors wages much higher than outside SEZs, fi xed working period and Presently,SEZDCisengagedinhelpingandassis! ngintheprepara! on which can contribute signifi cantly to the development of economic liberal extra benefi ts and allowances. of policy formula! on, making of special law, rules and regula! ons ac!vi! es and thus to the overall upli# ment of the living standard of Industrial Policy 2010: The Industrial policy, 2010 has been issued and project proposals. It is also responsible for preliminary site the people. having the salient feature where export oriented industries and iden! fi ca! on, technical and environmental feasibility study, fi nancial Government of Nepal (GoN) has adopted the concept of Special industries based in export promo! on house and Special Economic viability of the sites iden! fi ed and the infrastructure development Economic Zone (SEZ) to a$ ract foreign and na! onal investors Zones are en! tled to get declared facili! es and assistance on customs works in Bhairahawa SEZ and Simara SEZ. to invest and establish industrial and business units, which will duty, excise duty and VAT. Industries established in Special Economic Special Economic Zones Under Construction contribute in increased promo! on of export . Zone are en! tled to get the declared income tax exemp! ons, VAT related facili! es and assistance, and exemp! ons on customs duty Inspired by the success of Export Processing Zone (EPZ) in Taiwan, SEZ refers to a totally commercial area specially established for and local tax. Bangladesh and Sri Lanka, Nepal Government conducted a feasibility the promo! on of foreign trade. A Special Economic Zone is a geographical region that has economic laws more liberal than a Vision: Promo ng Special Economic Zone (SEZ) in Nepal as a totally study of EPZ in 2000. The feasibility study recommended diff erent country’s typical economic laws. Usually the goal is fl ourishment commercial area specially established for the promo on of foreign loca! ons such as Bhairahawa, Birgunj, Biratnagar etc as feasible in foreign investment. Moreoever, SEZs are specifi cally delineated trade that has economic laws more liberal than a country’s typical places to establish SEZ on the basis of interna! onal demand, enclaves treated as foreign territory for the purpose of industrial, economic laws a" rac ng both: foreign and domes c investment. na! onal and local compara! ve advantages, loca! ons of ICDs and Also develop SEZ as a delineated enclave treated as foreign territory service and trade opera! ons, with relaxa! on in customs du! es and other infrastructures. Government of Nepal, in 2000, declared to for the purpose of industrial, service and trade opera ons, with a more liberal regime in respect of other laws, foreign investments establish EPZ in Bhairahawa. In 2004, three more places Simara, and other transac!ons. relaxa on in customs du es and a more liberal regime in respect of other levies, taxa on, foreign investments and other transac ons. Panchkhal and Nuwakot were declared as Special Economic Zone. Concept of Special Economic Zone (SEZ) Mission: Establish and opera! onalize SEZ: Achieve steady The Government in 2008/09 budget speech announced that the SEZs would be established in Dhanusha, Dhangadhi and Jumla. By Special Economic Zone (SEZ) is the advanced concept of Export improvements in the establishment by: now 14 diff erent loca! ons have been declared to be developed as Processing Zone, and is also called the "Free Trade Zones" which • Proposing measures to create a steadily improving includes Export Processing Zones, Special Trade Zones, Tourism- investment friendly environment SEZ. • Removing and simplifying outdated unnecessary Entertainment Zones, Informa! on and Technology Parks, Banking The current status of SEZs (under construc! on) are as follows: etc. There is a likelihood of developing, opera! ng and maintaining procedures, approvals and legisla! on SEZ on a Public Private Partnership (PPP) model also. • Facilita! ng greater private sector role in SEZ development 1.Bhairahawa SEZ – for opera! on and development The main objec!ves of crea! ng "Special Economic Zone (SEZ) are: Achieving mission and vision – To develop compe! ! ve capacity of export oriented goods • A! rac" ng FDI: As one stop agency which facilitates and support and services in the interna! onal market. local and foreign investors in both manufacturing, and services – To a$ ract Foreign Direct Investment (FDI). sectors as they move up the value chain to achieve higher – To a$ ract domes! c and foreign capital and advanced state sustainable returns and seek out new opportuni! es. of-the-art technology by providing appropriate facility for • Growing industry ver" cals: While Nepal may be a regional the industry through one door. a$ rac! on in various areas, we have to focus on expanding and – To widen the export trade all over the world. extending exis! ng industry ver! cals. Exploring new growth Investment on land, infrastructures development and maintenance areas will contribute towards crea! ng good bond and sustaining by the government and investment by domes! c and foreign our compe! ! veness. investor/entrepreneurs for se* ng up units in the zones and • Enhancing business environment: while interac! ng with (Infracture development in Bhairahawa SEZ) taxes exempted are the costs to the na! on while labor return, investors and promo! ng investments, we have to provide rental of land and buildings, net income of SEZ administra! on and feedback to other government agencies to ensure that Bhairahawa SEZ lies in Rupandehi district of the Western suppor!ng agencies including u! li! es and taxes collectable are infrastructure and public services remain effi cient and cost Development Region of Nepal & is about 280 kilometers from benefi ts to the na! on. compe! ! ve. Kathmandu. GoN acquired 36.8 ha. of land to develop EPZ near