PRIVATIZATION ACT, 2050 (1994)

What does it do?

• The Act sets out how the government can privatise enterprises it fully or partly owns, to raise efficiency and productivity, reduce the financial and administrative burden on the state and widen private-sector participation. Privatisation can be done by selling shares (with priority, where possible, to the public, workers and employees), turning an enterprise into a cooperative, selling or leasing its assets, bringing in private management, or other means the government approves. The government must announce in the Nepal Gazette when an enterprise is to be privatised.दक्षता र उत्पादकत्व बढाउन, सरकारमाथिको वित्तीय तथा प्रशासनिक भार घटाउन र निजी क्षेत्रको सहभागिता बढाउन नेपाल सरकारको पूर्ण वा आंशिक स्वामित्व भएका प्रतिष्ठानको निजीकरण कसरी गर्ने भन्ने व्यवस्था यो ऐनले गरेको छ। सेयर बिक्री (सम्भव भएसम्म जनसाधारण, कामदार र कर्मचारीलाई बढी सहभागिता), सहकारीकरण, सम्पत्ति बिक्री वा भाडा, व्यवस्थापनमा निजी क्षेत्रको सहभागिता वा नेपाल सरकारले उपयुक्त ठानेको अन्य माध्यमबाट निजीकरण गर्न सकिन्छ। निजीकरण गर्नुअघि नेपाल सरकारले राजपत्रमा सूचना प्रकाशित गर्नुपर्छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Preamble, PDF p. 1; Section 2(क)–(ख), PDF p. 2; Sections 6 and 8, PDF pp. 5–6
• A Privatisation Committee chaired by the Finance Minister, including the chair of the House of Representatives finance committee, two government-nominated MPs, a National Planning Commission member, several secretaries and the president of the Federation of Nepalese Chambers of Commerce and Industry, sets priorities, arranges valuation of enterprises by expert teams and recommends the process. Bids are invited by public notice and judged on price, continuing the business, keeping existing staff, jobs, management experience and expansion plans, with preference to Nepali investors when bids are similar.अर्थमन्त्रीको अध्यक्षतामा प्रतिनिधि सभाको अर्थ समितिका सभापति, नेपाल सरकारले मनोनीत गरेका दुई सांसद, राष्ट्रिय योजना आयोगका सदस्य, विभिन्न सचिव र नेपाल उद्योग वाणिज्य महासङ्घका अध्यक्ष रहेको निजीकरण समितिले प्राथमिकता तोक्ने, विज्ञ टोलीबाट प्रतिष्ठानको मूल्याङ्कन गराउने र प्रक्रिया सिफारिस गर्ने गर्छ। सार्वजनिक सूचनाद्वारा प्रस्ताव आह्वान गरिन्छ र मूल्य, साबिककै प्रकृतिमा सञ्चालन, कार्यरत कर्मचारी स्वीकार, रोजगारी, व्यवस्थापकीय अनुभव र विस्तार योजनाका आधारमा मूल्याङ्कन हुन्छ; प्रस्ताव मिल्दाजुल्दा भए नेपाली लगानीकर्तालाई प्राथमिकता दिइन्छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Sections 3–4, PDF pp. 3–4; Sections 7 and 9–10, PDF pp. 5–7
• Before handover, both sides must sign an agreement setting out payment terms, timing and conditions, and a summary must be published within a month. Workers' service and gratuity can be carried over to the new owner; if not, the government must arrange fair compensation, and employees are offered some shares at a lower price. Disputes go to mutual talks and then, by consent, to arbitration in Kathmandu under Nepali law. Obstructing privatisation was punishable by up to two months in prison or a fine of up to Rs 5,000, or both.प्रतिष्ठान हस्तान्तरण गर्नुअघि दुवै पक्षले भुक्तानी, समयावधि र शर्त खुलाई सम्झौता गर्नुपर्छ र एक महिनाभित्र त्यसको संक्षिप्त विवरण सार्वजनिक गर्नुपर्छ। कामदारको सेवा र उपदान नयाँ लगानीकर्ताकहाँ सार्न सकिन्छ; नसकिए नेपाल सरकारले मनासिब क्षतिपूर्ति दिनुपर्छ र कर्मचारीलाई केही सेयर कम मूल्यमा उपलब्ध गराइन्छ। विवाद आपसी छलफल र त्यसपछि सहमतिमा काठमाडौंमा नेपाली कानूनअनुसार मध्यस्थताबाट समाधान हुन्छ। निजीकरणमा बाधा पुर्‍याएमा दुई महिनासम्म कैद वा पाँच हजार रुपैयाँसम्म जरिवाना वा दुवै सजाय हुने व्यवस्था थियो। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Sections 11 and 13–14, PDF pp. 7–9; Section 18, PDF p. 10
• The Privatisation (First Amendment) Act, 2081 renamed this law the Public Enterprises (Government Investment) Management Act and replaced 'privatisation' with 'management of government investment' throughout. It repealed the earlier ordinance of the same name, whose changes the consolidated text records, and raised the fine for obstruction to up to Rs 1 lakh.निजीकरण (पहिलो संशोधन) ऐन, २०८१ ले यस ऐनको नाम 'सार्वजनिक प्रतिष्ठान (सरकारी लगानी) व्यवस्थापन' ऐन बनाई ऐनभरि 'निजीकरण' को सट्टा 'सरकारी लगानी व्यवस्थापन' राखेको छ। सो ऐनले एकीकृत पाठमा उल्लेख भएका परिवर्तन गरेको उही नामको अध्यादेश खारेज गरेको छ र बाधा पुर्‍याउनेलाई हुने जरिवाना एक लाख रुपैयाँसम्म पुर्‍याएको छ। Nepal Gazette (Nepal Rajpatra), Department of Printing, Government of Nepal · Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Amendment Act 2081, Sections 2, 13, 16 and 17, PDF pp. 2, 7 and 8; consolidated text ordinance note, PDF pp. 10–14

Gaps, loopholes and improvement ideas

None documented in the official reports we have reviewed so far.

Where does it conflict with other laws?

No conflict with another law is documented in the sources we have reviewed so far.