The absence of a regular, distinct, and specific funding mechanism dedicated to supporting Micro, Domestic and Small Industries necessitated the creation of this Fund. This signifies the recognition by the Government of Nepal of the significant role played by these industries. The Fund aims to contribute to the industrial development of the country by promoting small-scale domestic industries based on natural resources and locally skilled services.
The objective of the fund is to aid in the development and promotion of micro-household and small-scale industries by utilizing appropriate technology for industrial infrastructure development. The collaboration between the public and private sectors will foster the growth and promotion of small-scale industries, enhance their productivity and quality, and facilitate their access to national and international markets.
Strategy:
- Transform traditional subsistence-oriented agriculture into industrial and commercial agriculture by assisting in the establishment and promotion of micro-household and small-scale industries, thereby creating opportunities for self-employment and widespread employment.
- Support the promotion of micro-household and small-scale industries that generate self-employment and extensive employment through the utilization of forest produce, minerals, and other advantageous natural resources.
- Promote export-oriented small domestic and small industries based on natural resources, including handicrafts.
- Encourage the production and service-oriented micro-household and small-scale industries that rely on local raw materials and skills, with the aim of reducing imports.
- Coordinate with relevant government agencies, ministries, departments, donor agencies, and international non-governmental organizations to facilitate entrepreneurship development, industrial infrastructure development, and market access for the development of micro-household and small-scale industries.
The Fund will disseminate information about relevant technologies and their application, provide training to enhance industry productivity, and contribute to technology experimentation in the field. Its primary focus is to support and promote these industries by increasing production and improving quality.
Areas of focus for the Fund:
- Technology development
- Entrepreneurship and industrial skill development
- Facilitating market access and network development
- Industrial infrastructure development
- Industrial studies, research, and network development
Loan programs:
- Assistance for ailing industries
- Financing the purchase of upgraded/new machinery for industrial use
- Funding various other areas as outlined in this procedure
Protection of Intellectual Property rights:
- Organizing central and district-level programs for the promotion, consumption, development, and collective registration of intellectual property rights
- Raising awareness about international instruments such as WIPO and the Trips Agreement, including their provisions and rationale
- Returning revenue generated from intellectual property registration to the relevant individuals.
Priority areas for programs conducted through the Fund:
- Technology development – 10%
- Entrepreneurship and industrial skill development – 30%
- Facilitation and mechanism building in market access – 15%
- Industrial infrastructure development – 10%
- Industrial studies, research, and network development – 5%
- Special programs – 5%
- Monitoring and evaluation – 7%
- Loan programs – 7%
- Intellectual property utilization and capacity development awareness – 6%
- Administrative management of the Fund Secretariat – 5%
This procedure will facilitate the functioning of small industries, which are a vital pillar of our country’s economy. They contribute to increased domestic consumption, thereby reducing imports.
