An Act related to the establishment
of the Industrial Enterprise Development Institute
Prefare: Whereas it is necessary to develop industrial enterprises to meet the need for entrepreneurship, quality management, technology and technical human resources for national industrial development, and through the development of the industrial sector to make the economy more dynamic,
Parliament has made this act in the 25th year of the reign of His Majesty King Birendra Bir Bikram Shah Dev.
Chapter 1.
Preliminaries
1. Short name and Commencement:
2. Definitions:
Except otherwise defined in a different subject or context, in this order -
a. "Institute" refers to the institute established under clause 3.
b. "Committee refers to the executive committee established under clause 6.
c. "Chairman" refers to the chairman of the committee.
d. "Member" refers to the members of the committee and this definition includes the chairman and the member secretary.
e. "Executive Director" refers to the executive director appointed under clause 9.
f. "Prescribed" or "As Prescribed" refers to the points prescribed or as prescribed in the rules made under this act.
Chapter 2.
Establishment and Arrangements for the Institute
3. Establishment of the Industrial Enterprise Development Institute:
1. An institute called the Industrial Enterprise Development Institute has been established to develop industrial enterprises.
2. The central office of the Institute will be situated in the Kathmandu valley and the Institute, if required, can open centres, sub-centres, branches and sub-branches in any location within the kingdom of Nepal.
4. The Institute to be an Autonomous Body:
1. The Institute shall be an autonomous and corporate body with perpetual successiion.
2. The Institute will have a separate seal of its own for its activities.
3. It may acquire, use and sell or otherwise dispose of movable and immovable assets like and individual.
4. It can also file legal cases against others and the Institute may also in turn have cases filed against it.
5. The Objectives of the Institute:
a. To assist in the human resources development of organisations and institutions involved in industry/enterprise development through the provision of services such as training of trainers, quality management, feasibility studies and consultancy based on their needs.
b. To carry out action research, based on needs, to provide quality services for industry/enterprise development.
c. To function as a service oriented organisation for the development of technical, entrepreneurial and management related knowledge and skills development in the industry/enterprise sector to give advice onconducting training of trainers courses.
d. To give priority to carrying out feasibility studies, research and development activities on businesses based on domestic raw materials or domestic and international raw materials.
e. To establish and develop the required organisations for industrial enterprise development.
Chapter 3.
Formation of the Committee and its Activities, Duties and Powers
6. Formation of the Committee:
1. To professionally conduct the programmes required for meeting the objectives of the Institute and to supervise all the activities of the Institute, an executive committee shall be established.
2. Unless mentioned in this act or other acts, the committee, remaining under the provisions of this act, or the rules made under this act, shall exercise all the authority and carry out all the duties of the Institute.
3. The following members will be in the committee:
a. Minister or Minister of State for Industry Chairman
b. Secretary, Ministry of Industry Member
c. Secretary, Ministry of Finance Member
d. President, Federation of Nepalese Chambers of Commerce and Industries Member
e. President, Federation of Nepalese Cottage and Small Industries Member
f. One Management expert nominated by HMG Member
g. One representative of the private sector nominated by the committee Member
h. One environmental expert nominated by the committee Member
i. The Executive Director of the Institute Member Secretary
4. The term of office for the nominated members shall be two years and they are eligible for re-nomination once their term expires.
5. If deemed necessary, the committee may invite in its meetings as observers any national or international specialist, adviser or a reputed person involved in industrial enterprise.
7. The Committee's Meetings and Decisions:
1. The date, time and place for the committee's meetings will be given by the chairman. However, the committee has to meet at least four times a year.
2. If one third of the committee members ask for a meeting, the member secretary, after obtaining permission from the chairman may call such a meeting.
3. When notifying the members about a meeting, the member secretary has to provide them with an agenda detailing the subjects to be discussed.
4. The committee's meetings will be chaired by the chairman and in hisabsence the members shall choose among themselves who shall chair the meeting.
5. If 50% of the members are present the quorum is deemed to be fulfilled.
6. Issues in the committee meetings will be decided on a majority basis. Only if there is a deadlock will the chairman cast the decisive vote.
7. The committee's decisions will be notified by the member secretary.
8. Other points relating to the committee's meetings will be as decided by the committee itself.
8. The Committee's Activities, Duties and Powers:
a. To provide training related to new business creation, entrepreneurial competency development, project identification and selection and training related to business plan feasibility.
b. To conduct training related to production management and productivity development, marketing accountancy, personnel management and management.
c. To conduct programmes related to business and technical information provision and technology transfer.
d. To conduct programmes such as entrepreneurship trainers training, training of trainers on management development and training of trainers on technical and skills development.
e. To provide small business consultancy services.
f. To conduct, by itself or in collaboration with other organisations, various types of research, training, studies, seminars, surveys, exhibitions and workshops related to industry.
g. To prepare the necessary curriculum and manuals for industrial enterprise development, to prepare result oriented programmes for the training and trainers, to conduct such programmes and to evaluate them and conduct follow up services.
h. To obtain cash, goods or other services for industrial enterprisedevelopment from HMG of Nepal, foreign governments, national and international organisations, institutions and individuals. However, when obtaining cash, goods or other services from foreign governments and international organisations, institutions and individuals prior permission from HMG of Nepal must be obtained.
i. To levy fees for the committee's services, to recover fully or partially the cost of the programmes depending on the economic condition of the target group.
j. To carry out other activities to fulfil the objectives of the committee.
Chapter 4.
Arrangements Regarding the Executive Director and Staff
9. Appointment of the Executive Director:
1. As the administrative head of the Institute to carry out day to day tasks, the committee shall appoint an executive director who shall have a masters degree and have specialist knowledge in the field of industrial enterprise development.
2. The term of office for the executive director shall be four years and can be re-appointed for another four years at the maximum.
3. The executive director's pay, service conditions and facilities shall be as prescribed.
10. The Activities, Duties and Powers of the Executive Director:
1. The activities, duties and powers of the executive director shall be as follows:
a. To implement or direct the implementation of the policies and directives of the committee.
b. To prepare the long term and short term plans, annual programme and budget of the Institute.
c. To implement programmes and projects approved by the committee.
d. To release the approved budget.
e. To carry out other necessary activities as the administrative head of the Institute.
2. Except for that mentioned in clause 1 above, the other activities, duties and powers of the executive director shall be as prescribed.
11. Arrangements Regarding Personnel:
1. The committee shall appoint the required advisers, experts, trainers, officers and support staff for its smooth operation.
2. The pay, service conditions and facilities of the advisers, experts. trainers, officers and support staff appointed under sub clause 1 shall be as prescribed.
Chapter 5.
Funds and Auditing
12. The Fund of the Institute:
1. The Institute shall have it's own separate fund.
2. The following amounts will remain in the fund outlined in sub clause 1 above:
a. Amounts received from HMG of Nepal.
b. Assistance, grants or loans received through a foreign government or national and international organisations and institutions.
c. Amounts received for consultancy or other services provided by the Institute.
d. Grants and prizes from national and international organisations, institutions and individuals.
e. Amounts received from any other sources.
3. The entire expenses for the Institute shall be met from the fund mentioned in sub clause1 above.
4. The fund of the committee shall be operated as prescribed.
13. Accounts and Auditing:
1. Accounts of the income and expenses of the Institute shall be kept in the prescribed manner.
2. The accounts of the Institute shall be audited by an auditor appointed by the Auditor General.
Chapter 6.
Miscellaneous
14. The Power to Form Sub-Committees:
1. The committee can form sub-committee for its operation.
2. The work, duties, powers and working procedures of the sub committees formed under sub clause 1 will be as prescribed.
15. Annual Report:
1. The annual report of the Institute has to be presented by the executive director within three months of the end of the fiscal year and a copy of that report has to be presented to HMG of Nepal.
2. The annual report shall be made available to the public every year.
16. Delegation of Authority:
1. If deemed necessary the committee may delegate all or some of its powers to any member, sub committee formed by the committee, the executive director or any member of staff of the committee.
2. Among the powers of the executive director, he or she may delegate some or all of the powers, if necessary, to any official.
17. Meeting Allowance and Other Facilities:
The members of the committee shal receive a meeting allowance as prescribed.
18. Contact with HMG of Nepal:
The Institute shall keep contact with HMG of Nepal through the Ministry of Industry.
19. Ability to Make Rules:
1. The committee can make the required rules to achieve its objectives and such rules after receiving approval from HMG shall be effective.
2. The Institute, remaining under the rules made in this act or under the provisions in this act, can, for carrying out its activities, make the necessary by-rules and such by-rules will be effective once the committee gives its approval to them.
20. Revocation and Immunity:
1. The Industrial Enterprise Development committee (Implementation) Order 2052 has been revoked and all the movable and immovable assets of the centre formed under that order will be transferred to the Institute.
2. All contracts and agreements made with the committee mentioned in clause 1 above will be binding on the Institute and all activities carried out by the committee shall be deemed to have been carried out by the Institute.
Royal Seal placed on Monday, 4 November 1996.