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The private sector’s umbrella organisations have urged the government not to disconnect electricity supply to industries within industrial estates until the final legal resolution of the dispute related to rent in industrial areas.

Issuing separate press statements, the Confederation of Nepalese Industries (CNI) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have both expressed concern over the ongoing dispute related to rent increase in industrial estates and have urged authorities not to disrupt industrial operations until the matter is fully resolved by the Supreme Court.

The CNI has requested that electricity supply to industries within industrial estates not be disconnected until the final legal resolution of the dispute.

Referring to the rent revision case, CNI said that the Supreme Court, in its decision dated March 25, 2025, had ruled that the revised rent rates introduced by the Industrial Estate Management Limited (IEML) would apply from July 6, 2022. The industrialists have also accepted this verdict.

However, the Industrial Estate Management Limited has now gone to the Supreme Court seeking a review of the decision, and the matter is still under consideration.

Considering this issue, CNI requested that power lines not be cut in any industries within the industrial zone and that the disconnected industries be reconnected until the final resolution of this dispute is reached by the Supreme Court.

Furthermore, as some industries have already paid rent in accordance with the Supreme Court’s decision, and others are also willing to pay but have expressed concern that the seven-day deadline is too short, the Confederation also requests an extension of the payment period.

The Confederation urged all concerned stakeholders to facilitate and ensure the uninterrupted operation of industries as it is given the need to keep the overall economy dynamic, and the importance of encouraging and protecting production-oriented industries.

Meanwhile, FNCCI has expressed serious concern over the reported preparation by the Industrial Estate Management Limited to use administrative force, including cutting electricity lines and taking action against industrialists, in around 700 industries operating across 10 industrial estates of the government of Nepal.

The federation said that in the current context of a sluggish economy, it is the state’s primary responsibility to encourage and protect production-oriented industries to ensure economic revitalisation.

It said that facilitating uninterrupted industrial operations is also part of the responsibility of the Industrial Estate Management Limited.

The federation warned that disrupting production by cutting electricity supply and forcing industries to halt operations is unjustifiable from any perspective.

It said that such actions could undermine investor confidence and discourage both domestic and foreign investment.

The FNCCI has urged the Ministry of Industry, Commerce and Supplies, and the Industrial Estate Management Limited to immediately stop all activities that threaten industries and hinder the flow of production.