Simara SEZ gains momentum as seven industries enter production

Indo Agro, a Nepali-Indian joint venture planning to produce palm oil, is another industry under construction. Omkar Pvt Ltd, backed entirely by Indian investors, is being developed as a granite manufacturer, while Gang Uying Biotechnology, with Chinese investment, plans to produce pharmaceutical raw materials.

La Dee Car Pvt Ltd, a Nepali-Chinese joint venture, is constructing facilities for aluminium products. Om Mega Shree Pvt Ltd, backed by Indian investors, is preparing infrastructure for the manufacture of diapers and sanitary pads. Ma Tara Pvt Ltd, another Indian-backed project, plans to manufacture spices.

Asian Vehicles, a Chinese-invested company planning to manufacture electric vehicles, is also under construction. Hulas Cable Pvt Ltd of the Hulas Group is developing facilities to manufacture wires.

Infrastructure is likewise being built for Everest Fashion Pvt Ltd, which plans to manufacture handicraft products for export.

Once the industries under construction are completed and begin production, more than 1,000 additional workers are expected to receive full-time employment at the SEZ, according to Silwal.

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.