The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) issued separate statements calling for administrative restraint until the Supreme Court delivers a final ruling on an ongoing rent dispute.
The Core of the Dispute
- The 2025 Ruling: On March 25, 2025, the Supreme Court ruled that revised rent rates introduced by the Industrial Estate Management Limited (IEML) would apply retroactively from July 6, 2022. While industrialists accepted this decision, some have already paid and others are willing to comply.
- The Current Appeal: The dispute remains unresolved as the IEML has recently approached the Supreme Court seeking a review of that very decision.
Key Demands from Business Leadership
- Stop Power Cuts and Extend Deadlines (CNI)
The CNI has requested that the government maintain uninterrupted power lines—and immediately reconnect any affected factories—while the court reviews the case. Additionally, they noted that the current seven-day payment deadline is far too short for businesses to clear their dues and have requested a formal extension.
- Halt Administrative Force (FNCCI)
The FNCCI expressed severe concern over reports that the IEML intends to use administrative force, including cutting power to around 700 industries operating across 10 government industrial estates.
"Disrupting production by cutting electricity supply and forcing industries to halt operations is unjustifiable from any perspective. Such actions could undermine investor confidence and discourage both domestic and foreign investment."
— Federation of Nepalese Chambers of Commerce and Industry (FNCCI)
Economic Impact
Both organizations emphasized that during the current economic slowdown, the state's primary role should be to protect production-oriented businesses to stimulate economic revitalization. They have called upon the Ministry of Industry, Commerce and Supplies, alongside the IEML, to immediately cease actions that threaten industrial productivity.
