The Industrial Area Management Limited has started disconnecting water and electricity lines from industries operating within various industrial areas that have not paid their dues for land, buildings, water, electricity, etc. In two days (Wednesday and Thursday),

Limited disconnected the water and electricity lines of 167 industries located within 10 industrial areas. Of these, 87 industries that had paid their dues were reconnected on Thursday. 

Limited had issued a notice on 25 Jestha to the industries operating within the concerned industrial areas to pay their dues within seven days. The disconnection of lines has started from Wednesday after the deadline expired.

Limited General Manager Padam Wali said that as of Thursday evening, the water and electricity lines of 80 industries were still disconnected. The Limited said that the lines of 74 more industries that had not paid their dues are yet to be disconnected and 62 industries  are not currently in the industrial area.

‘The rest of the industries will continue to be disconnected tomorrow if they do not pay the arrears,’ said Wali. In the case of those who did not pay the rent increase arrears, both electricity and water lines were disconnected in industries that did not pay the rent increase.

In the High Court decision certified on 24 Chaitra 2080, it was said that industrialists should pay the increased rent since 2075 BS. However, industries in the industrial sector had approached the Supreme Court against that. In which, on 12 Chaitra 2081, the Supreme Court had reversed the High Court order to some extent and issued a mandate to implement the revised rent rate only from 22 Ashar 2079 BS. 

However, on 25 Pus 2082, the Limited decided to file a review petition against the Supreme Court’s decision, which was reversed to some extent by the Supreme Court in Chaitra and the decision would have to adjust the land rent for 4 fiscal years, which would cause a loss in the annual income of the Limited. 

The Federation of Nepal Industrial Sector Industries and the Nepal Industrial Sector Industries had also gone for a review of the Supreme Court's decision, saying that they were not satisfied with the decision of the board of directors of the Limited and the Limited. But on Thursday, a bench of three Supreme Court judges Binod Sharma, Sunil Kumar Pokharel and Nityanand Pandey did not allow the review. Now, the previous Supreme Court decision will be implemented and entrepreneurs will have to pay the revised rent rates from 2079 BS, said Supreme Court spokesperson Arjun Prasad Koirala. 

Rent dispute in 10 industrial zones across the country

Ejaz Alam, president of the Federation of Nepal Industrial Sector Industries, says that they have been demanding the implementation of the rent increase since 2079 BS. He claims that they have not paid and will not pay the increased rent amount from 2075 BS to 2079 BS as per the Supreme Court's decision. He says that he has already written to all the industrialists to pay the arrears according to the rent increase since 2079 BS. 'Both reviews have been rejected. We will pay the rent increase from 2079 as per the Supreme Court, we have already said so,' he said, 'The Limited gave seven days at once, which is less. The line was cut off without giving any notice on Wednesday. At least written information should be given.'

The Limited has made public the arrears since 2075 along with the notice. 'According to our billing, the arrears are from 2075,' Wali said, 'However, we had gone for review for the Supreme Court's decision. Today it seems that we have not received any response.' He said that the industrialists have not paid the arrears since 2079 even as per the Supreme Court's decision.

'The notice we issued shows the arrears since 2075. The industrialists have not paid the amount as per the Supreme Court's decision,' he said. Wali said that the board of directors of the Limited will decide on the matter of not getting permission for review. "Now, industries must pay the arrears since at least 2079, otherwise the line cutting will continue," he said.  According to

Limited, the arrears of rent and service charges due from industries operating in various industrial zones are more than Rs 890 million. After the lines were cut on Wednesday and Thursday, industrialists have paid more than Rs 280 million in arrears. 

Limited says that the non-payment of arrears has directly affected the construction, maintenance and service facilities provided to industries in the industrial zone. After the lines started being cut in industries in the industrial zone, the private sector umbrella organizations Federation of Nepalese Chambers of Commerce and Industry and Confederation of Nepalese Industries have issued a press release.

The Confederation has urged not to cut electricity lines in industries until the final legal resolution of the rent dispute within the industrial zone is reached. "As the matter is under review, we request that the power lines of any industry within the industrial zone not be cut and that the disconnected industries be reconnected until the Supreme Court finally resolves this dispute," the statement said.

According to the court's decision, some industries have already paid the rent and other industrialists are also trying to pay, but the federation has requested that the rent payment period be extended as there have been complaints that 7 days is not enough. 

Stating that there is a need to encourage and protect manufacturing industries to keep the overall economy moving, the federation has asked for support and facilitation to ensure the smooth operation of the industry.

The federation has stated that attention has been drawn to the recent use of administrative force to cut power lines and arrest industrialists in about 700 industries established in 10 industrial zones. ‘In a situation where industrialists have not been provided with a clear description of the rental rate even when it is requested, suddenly asking them to pay the arrears within a short period of 7 days and on the same pretext, cutting off the electricity of the industry and putting unnecessary mental pressure on it to hinder the operation of the industry is against the rule of law and business etiquette,’ the federation said in a statement.

The federation has stated that it is the primary responsibility of the state to encourage and protect the manufacturing industry to keep the economy running smoothly. It has also stated that the Industrial Area Management Limited has the responsibility to support and facilitate the smooth operation of the industries. 

‘At a sensitive time, cutting off the power lines of industries, halting production and creating a situation where the industry has to close down cannot be justified from any perspective. "Such a move will demoralize domestic investors and discourage domestic and foreign investment," the federation said. "It is everyone's responsibility to encourage and protect the production and productivity of the industry."