Background

The establishment of the first industrial District at Balaju/ Kathmandu in 1960 under the U. S. assistance with infrastructure facilities e.g. developed land fenced with boundary wall, industrial sheds, warehouses, roads, drainage/culverts, electricity/ water supply, bank, clinic, Post office Day care child center, canteen, and other required services for smooth operation of industries therein, is considered as a pioneer venture in the organized development of industrial Districts/Estates (IDs/IEs) in Nepal.

Considering topographical condition, existing infrastructure facilities and regional balanced economic development of the country, Government of Nepal has established 11 IDs in different parts of the Kingdom under the assistance from various donor countries like USA, India, Netherlands and Germany. Out of 11 IDs, 10 IDs i.e. Balaju, Patan, Hetauda, Dharan, Nepalgunj, Pokhara, Butwal, Bhaktapur, Birendranagar and Gajendranarayan Singh are in operation at present and one at Dhankuta, the construction work being held up since a couple of years, due to technical problem, is yet to come into operation.

Industrial Districts Management Limited
Initially, the management of Balaju and Hetauda Industrial District was undertaken by Nepal Industrial Development Corporation (NIDC) whereas Patan, Dharan, Nepalgunj and Pokhara Industrial Estates were under HMG, Department of Industries. Later on as the IDs grew up in number and its activities expanded, the entire management of all IDs was formally handed over to the Industrial Services Center (ISC) an undertaking of Government of Nepal in 1975.

Industrial Districts Management Limited (IDM) was founded as a separate corporate entity in July 1988. It was entrusted with the overall management and supervision of all IDs plus other tasks such as conducting feasibility studies of IDs in potential areas, materializing new IDs and planning and promotion of industries therein. IDM is wholly an undertaking of  Government of Nepal incorporated under the company Act in the form of a Public Limited Company. Its shareholders are Ministry of Industry Commerce & Supplies (MOICS), Auditor General Office and Nepal Industrial Development Corporation. It has an authorized capital of Rs.150 million and issued capital of Rs.130.87 million.