Simara SEZ gains momentum as seven industries enter production

Seven industries at Simara SEZ, Bara, have begun selling products domestically, while 11 more near completion bring investment to Rs 5 billion and could create over 1,000 additional jobs.

PUBLISHED15-AUG-2026 01:41 PM

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Simara SEZ gains momentum as seven industries enter production

Simara, August 15, 2026 — Seven industries operating inside the Special Economic Zone (SEZ) in Simara, Bara, have begun selling their products in the domestic market, while 11 more industries are nearing completion, signaling increased industrial activity at the zone.

The Special Economic Zone Authority said investment in industries that are already operating or are close to completion has reached around Rs 5 billion.

Ram Singh Mal, site in-charge of the Simara SEZ, said seven industries have already started commercial activities and are distributing their products. Both Nepali and foreign investors have participated in establishing the industries currently operating at the zone.

Among the operational industries, Pashupati Ceramics ATS, which manufactures ceramic tiles, has attracted the largest investment. More than 800 people have so far secured direct employment from industries that have started production, Mal said.

Nepovit Ceramics Pvt Ltd, a joint venture between India's AGL Group and Nepali investors, is preparing to begin production of tiles. The company has been developing its production facilities within the SEZ.

Other industries at various stages of becoming operational include Brilliant Shoes, which manufactures footwear; Laxmi Granite, which produces granite; Balaji Manufacturing, which makes fans, stoves and other products; and Nepal Agro Tools, which manufactures agricultural equipment.

According to the SEZ Authority, 67 of the 68 industrial plots in Block A of the Simara SEZ have been leased.

Industries operating or under construction at Simara have a significant foreign-investment presence. Sagar Silwal, senior information technology officer at the SEZ Authority, said 11 of the 18 industries that have either started operations or are in the final stages of construction have foreign investment.

Some of these companies are entirely foreign-owned, while others have been established through partnerships between Nepali and foreign investors.

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The authority has also received proposals from 10 additional investors seeking to establish industries at the Simara SEZ.

The increase in investor interest has followed a reduction in SEZ land rental rates. The government reduced the previous rate of Rs 20 per square metre to Rs 5 per square metre, a move officials say has made SEZ plots more attractive to both Nepali and foreign investors. A recent report by The Rising Nepal also noted that the SEZ land-rent rate was reduced to Rs 5 per square metre through a Cabinet decision in November 2025.

A May 2026 report by Kantipur similarly reported that 21 industries had been registered at the Simara SEZ, with seven already operating and nearly a dozen new projects under construction. It identified foreign participation from India, China, South Korea and other investors and said the operational industries were providing employment to about 700 people at that time.

The Simara SEZ is divided into five blocks covering about 833 bighas. Block A, the largest developed industrial section, has seen most of the current activity. Under the SEZ arrangement, industrial land is leased for 30 years, while companies are permitted to sell their products domestically during their initial years before export requirements progressively increase.