The draft aims to reform conflicting provisions across several existing laws including the Forest Act, Environment Protection Act, Land Acquisition Act, and Public Procurement Act which have traditionally caused major development projects to stall for years.
The new legal framework introduces several streamlined processes to eliminate duplicate paperwork and bureaucratic delays.
If a project’s approved Environmental Impact Assessment (EIA) already details the source and quantity of construction materials, local governments will no longer require a separate Initial Environmental Examination (IEE).
Relevant ministries and authorities must decide on forest clearance, tree-felling, and "transformative projects" within three months.
If authorities fail to make a decision within the three-month window, a Directive Committee chaired by the Prime Minister can step in to bypass the delay and advance the project.
The law introduces punitive actions against government officials who fail to make administrative decisions within the stipulated timeframes.
Long public procurement procedures will be bypassed for minor but critical works, such as shifting power lines during road expansions.
Projects will not be charged royalties for using stones, pebbles, or sand excavated directly from the construction site. However, regular royalties will still apply if these materials are sold or transferred outside the project area.
NPC Member Arjun Jung Thapa emphasized that the Sunset Law is not designed to weaken environmental protections or legal integrity. Instead, it aims to eliminate redundant procedural obstacles and counter individual self-interests that hold up public work. He cited the Prithvi Highway Expansion Project as a prime example, noting it has faced severe delays since 2018 due to repetitive local-level environmental clearances despite having a fully approved EIA.
"The purpose of the Sunset Law is not to weaken the law but to remove impractical and double procedural obstacles seen in development works," Thapa clarified.
Former Secretary Keshav Kumar Sharma supported the initiative, clarifying that this is a "legal framework sunset law" targeting systemic issues rather than an independent law for a single project. Sharma noted that passing this framework early in the fiscal year would significantly boost capital expenditure and accelerate project execution.
Commenting on ongoing discussions with construction contractors, former Secretary Sharma added that the government needs to address "price adjustments" rather than viewing them as demands for more money. Because market prices fluctuate up and down, adjusting contracts proportionally represents a standard fiscal mechanism already permitted under current legislation, rather than an arbitrary "price hike."
Following the submission of the preliminary draft this week, the committee will hold cross-ministerial discussions with the Ministries of Finance, Law, Forest and Environment, Energy, and Physical Infrastructure. A finalized proposal will then be sent to the Cabinet before being tabled in Parliament.
