With recent legal amendments allowing older industries to relocate to Special Economic Zones (SEZs), established businesses in Nepal are initiating factory setups within these zones, which offer incentives aimed at promoting exports. The Chaudhary Group, renowned for Waiwai noodles, and Kiran Shoes Manufacturers, known for the Goldstar shoe brand, are among the first to take advantage of this initiative by setting up factories in the Simara and Bhairahawa SEZs respectively. Previously, Section 7 of the Special Economic Zones Act, 2073, prohibited the transfer and operation of existing industries within SEZs. However, recent amendments now permit registered and operational industries like CG Foods under the Chaudhary Group and Kiran Shoes Manufacturers to relocate to Simra and Bhairahawa SEZs, respectively. The Special Economic Zone Authority of Nepal has invited proposals from industrialists to establish and operate industries in these zones.

On May 12, the authority called for proposals to set up industries in Block 'A' of Bhairahawa and Simra SEZs. CG Foods has applied for six plots in Simra Block 'A' to produce noodles and Bhujia, aiming to commence operations within six months of the application. Similarly, Kiran Shoes plans to start production within the same timeframe. Acting Executive Director of the Authority, Tulsiram Marasini, confirmed the registration of CG Foods' Waiwai noodles and Kiran Shoes’ Goldstar brands, highlighting that these operational industries will immediately begin production upon relocation.

To facilitate such investments, the government has amended several laws and ordinances, including the Special Economic Zone Act, 2073, to enhance investment facilitation. This amended bill is now awaiting approval in Parliament. The participation of CG Foods and Goldstar is expected to significantly boost industrial activity within the SEZs. CG Foods plans to produce 1,000 metric tons of Waiwai noodles and 1,500 metric tons of Bhujia annually in Simra SEZ with an investment of Rs 22 million. Meanwhile, Kiran Shoes intends to invest Rs 540 million in Bhairahawa SEZ to manufacture 9.6 million pairs of shoes and slippers annually.

Kiran Shoes aims to expand its footwear exports, particularly to India, where its market share has decreased. By establishing operations close to the border in Bhairahawa, the company aims to regain its market share in India. The authority has received a total of 26 proposals for industrial operations in Bhairahawa and Simra SEZs following the amendment, marking the highest number of applications since the enactment of the amendment. This includes proposals for hubs focused on herbs and iron production alongside manufacturing. In Bhairahawa SEZ, 12 proposals have been received, totaling Rs 7 billion in investments, with Goldstar being the largest contributor. Simra SEZ has received proposals from 14 industries totaling Rs 12 billion in investments. Currently, 'A' blocks of Bhairahawa and Simra are operational, with 136 plots ready for industrialization. Bhairahawa SEZ has five operational plots out of 68, with two under construction, while Simra SEZ has 11 operational plots.