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Nepal Government Intensifies Crackdown on Industries Dodging Rent Payments on State Land and Structures

Jul 17, Kathmandu - After years of industries using government land and structures without paying rent, the Ministry of Industry, Commerce, and Supply has stepped up efforts to recover outstanding dues. Following directives from Minister Gauri Yadav, industries have been ordered to clear their dues within seven days, warning that electricity and water supplies will be disconnected otherwise.

Since the directive, many industries have begun settling their unpaid rents to avoid disconnection, according to the ministry. As of Thursday, approximately NPR 5.66 million has been recovered, bringing the total amount collected to over NPR 467 million.

Additionally, the ministry reported that the electricity lines of five industries were reconnected yesterday and today after they paid their dues. However, 21 industries still have unpaid bills, resulting in continued power cuts.

Notably, two companies with the highest outstanding dues—Continental Components and Services Pvt. Ltd. owing NPR 3.75 crore, and Continental Services Pvt. Ltd. owing NPR 1.15 crore—have yet to comply with government instructions. The ministry has announced plans to initiate legal proceedings against these firms, which are allegedly operating government warehouses despite unpaid dues, in consultation with relevant authorities.