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Industries that had long delayed paying fees for the use of infrastructure within industrial estates have begun clearing their outstanding dues after the government warned of legal action against defaulters.

The Industrial District Management Limited (IDML) recently cautioned industries operating in 10 estates that dues would be recovered in accordance with the law if payments were not made within seven days. Following the notice, industries have already paid more than Rs 10 million in outstanding fees, according to IDML Information Officer Basudev Sodari.

More than 300 industries still owe over Rs 880 million in fees. Minister for Industry Gauri Kumari instructed authorities to immediately recover the amounts. Estate-wise figures show Patan industries owe Rs 101 million, Balaju Rs 438.9 million, Hetauda Rs 209 million, Dharan Rs 7.1 million, and Pokhara Rs 44.1 million. Similarly, Butwal industries owe Rs 45.7 million, Nepalgunj Rs 13.4 million, Birendranagar Rs 600,000, Bhaktapur Rs 17.1 million, and Gajendranarayan Singh Industrial Estate Rs 6.3 million.

Officials said the failure to collect dues has hampered infrastructure construction and maintenance, as well as service delivery in industrial estates. Industries are required to pay fees for land, buildings, electricity, and water, but many had ignored repeated reminders. After the latest notice, industrialists have started visiting the office for discussions, with smaller dues already being cleared and larger ones under negotiation. Some have requested concessions or asked that payments be treated as deposits rather than penalties.

The arrears dispute stems from a 2018 decision by the Industrial District Management Board to increase rental rates, which industrialists challenged as excessive. The Ministry of Industry later suspended the hike, but in 2022 the Board reinstated the revised rates retroactively from August 2018.

Industrialists resisted paying past dues, leading the Federation of Nepal Industrial Estate Industries to file a petition at Patan High Court. The court ruled in favor of the IDML, and the case eventually reached the Supreme Court. On March 25, 2025, the Supreme Court upheld the rent hike but directed that revised fees be collected only from July 7, 2022, the date bills were issued. The verdict also ordered a fee review every five years.

In January 2026, the Board sought a review of the Supreme Court’s decision, arguing that implementing it would cause a revenue loss of Rs 150–160 million. A hearing is scheduled for June 27, 2026. Meanwhile, the Federation has urged both sides to withdraw review petitions and implement the Supreme Court’s ruling to foster a better industrial environment.

Sodari noted that industries have been asked to deposit disputed rent amounts as security until the matter is resolved, given the significant funds required for infrastructure development in industrial estates.