Kathmandu, October 16: The Nepal domestic products directive has been approved by a Cabinet meeting, according to an announcement made on Ashoj 30, 2083 BS. The directive, formally described as Directive 2083 on the promotion and use of domestic products in public procurement, gives priority to domestic products, local resources and domestic technology in government procurement and infrastructure construction. The stated aim is to reduce dependence on imported materials while expanding the market for goods and technology produced inside Nepal.
What the Nepal domestic products directive changes
The announcement lists 11 policy changes that public bodies, designers, consultants and contractors will need to follow when public money is spent on goods, works and services. In summary, the changes are as follows.
- Government bodies must use domestic goods and local materials where they meet the set quality and technical standards.
- Designs for infrastructure such as roads, bridges and buildings must not be prepared in a way that requires foreign materials when a suitable domestic alternative exists.
- For blacktopped roads, priority should go to technically suitable domestic alternatives to imported bitumen, such as concrete roads made with domestic cement, local stone and other domestic construction technology.
- Government buildings should prefer domestic marble, stone, slate and tiles over imported granite and tiles, and should also use domestic options for decoration, electrical fittings, furniture and sanitary work.
- There should be no compromise on quality, safety, durability or technical standards while domestic industry is promoted, so that markets, industrial output, jobs and import substitution can grow.
- Technical specifications must not target a specific foreign brand, place of production or country of origin when a domestic alternative exists.
- Maximum use of domestic products and technology must be ensured from the feasibility study, design, detailed project report, cost estimate and tender preparation stages.
- Use of domestic materials must be a binding condition in tenders, specifications, bills of quantities and contracts, and foreign materials cannot be substituted after contract without approval.
- Construction materials produced or processed from natural resources and raw materials available anywhere in Nepal can be used in public projects and government procurement nationwide.
- Responsibility for ensuring the use of domestic materials is assigned to the head of the public body, the technicians and consultants preparing studies and designs, and the approving officials.
- Strict action is provided against contractors or suppliers who pass off foreign goods as domestic, use fake brands or labels, or give false origin details. In such cases, materials can be rejected, payment can be stopped, and blacklisting and legal action can be started.
Why the decision matters for builders and suppliers
Public procurement is one of the largest sources of demand for construction materials in Nepal, covering roads, bridges, public buildings and other infrastructure built with government funds. Under the Nepal domestic products directive, that demand is expected to be directed first toward producers and suppliers inside the country, provided their products meet the required standards. The ministry says the directive creates a new basis for expanding production, employment and economic activity inside the country through government funded construction and procurement. For domestic producers of cement, stone, marble, slate, tiles, furniture and other materials, clearer preference in tenders could mean a larger and more predictable market. For contractors, the change will affect how bids are prepared, which materials are priced, and how the origin of those materials is documented.
Quality, responsibility and enforcement
The Nepal domestic products directive also stresses that local preference is not a reason to lower standards. The announcement says there will be no compromise on quality, safety, durability or technical standards while domestic industry is promoted. Accountability is placed at several levels at once, from the head of the public body to the technicians and consultants who prepare studies and designs, and to the officials who approve them. Enforcement provisions cover false claims about origin, fake brands and labels, and the supply of foreign goods presented as domestic products, with rejection of materials, stopped payments, blacklisting and legal action listed as possible consequences.
What happens next
The changes will need to be reflected in the documents that shape each new project, starting with feasibility studies and designs and continuing through detailed project reports, cost estimates, tender documents, bills of quantities and contracts. Because substitution of foreign materials after a contract is signed will require approval, contractors and suppliers can expect the origin and specification of materials to receive closer attention during procurement and during execution. How widely the preference is applied in practice will depend on the availability of domestic products that meet project standards in each category, from road surfacing materials to building finishes.
Source: Minister Sunil Lamsal’s Facebook post, October 16, 2026
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