Entrepreneurship, Investment, and Emerging Industries Koshi Province has emerged as one of Nepal's most active subnational governments in promoting private sector-led economic growth. The provincial government has pursued a strategy combining policy reform, public–private partnerships, and dedicated investment facilitation to attract domestic and foreign capital across sectors including tourism, agriculture, agro-processing, hydropower, infrastructure, and information technology. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) maintains a provincial chapter in Koshi, and the Confederation of Nepalese Industries Young Entrepreneurs' Forum (CNIYEF) operates a Koshi Chapter working to develop the next generation of business leaders in the region. The first
Koshi Province Investment Summit was held in
Biratnagar on 1–2 May 2025 (Baisakh 18–19, 2082 BS), marking a landmark event in Nepal's federal economic governance. The summit was inaugurated by the then Prime Minister
KP Sharma Oli and hosted under the leadership of Chief Minister
Hikmat Kumar Karki, with coordination handled by the Provincial Investment Authority (PIA), led by Executive Director Dr. Saroj Koirala. A total of 71 projects across eight sectors — tourism, agriculture, industry, infrastructure, energy, information technology, services, and waste management — were presented to investors, with a combined estimated value of NPR 173.49 billion. Ahead of the event, the provincial government amended eight laws through executive ordinances — including the Provincial Industrial Enterprises Act, the Public Private Partnership and Investment Authority Act, and the Provincial Tourism Act — to remove bureaucratic barriers and create a more investment-friendly legal environment. Investors from China, Russia, the United States, South Korea, India, and the non-resident Nepali diaspora participated alongside major domestic industrialists. By the conclusion of the two-day event, Memoranda of Understanding (MoUs) had been signed for 46 projects worth NPR 152.16 billion, covering agriculture, industry, tourism, infrastructure, energy, information technology, and waste management. An additional five MoUs were concluded in the weeks following the summit, bringing the total to 51 committed projects. Writing in
The Kathmandu Post in February 2026, analysts described the summit as a "concrete step toward operationalising federalism through economic governance," arguing it could help transform the province into a production-oriented growth centre contributing to national capital formation and employment generation, in contrast to Nepal's historically import- and consumption-driven fiscal structure. To sustain the momentum generated by the Investment Summit, the provincial government launched the
Udaya project in 2025 with financial and technical support from the
Swiss Agency for Development and Cooperation (SDC). Designed to run for ten years — with an initial four-year implementation phase — Udaya targets
small and medium enterprises (SMEs) across all 14 districts of Koshi Province with the aim of creating 3,000 jobs in its first phase. The project provides collateral-free loans ranging from NPR 3 million to NPR 30 million through a credit guarantee fund of NPR 600 million, designed to mobilise approximately NPR 8 billion in total bank lending. A Challenge Fund of NPR 280 million will additionally support the promotional and competitive capacity of emerging businesses. In the information technology sector, the CNIYEF Koshi Chapter organised the
1st Koshi IT Summit 2025 in Biratnagar on 3 May 2025, bringing together industry leaders, policymakers, entrepreneurs, IT professionals, and investors to explore opportunities for leveraging technology as a catalyst for economic growth and innovation in the region. The summit aimed to develop a roadmap for a sustainable IT ecosystem in Koshi Province, foster public–private–academic partnerships, and attract investment into IT-driven startups. Complementing these initiatives, the Step Up project — co-financed by the Happel Foundation and the Swiss Agency for Development and Cooperation — has been active in Koshi Province, promoting youth entrepreneurship and self-employment as a means of reducing outmigration, particularly among young people in rural hill and Terai communities. Entrepreneurial activity has expanded in Koshi Province in recent years, supported by targeted policies, investment promotion events and a growing startup ecosystem. A special study by Nepal Rastra Bank reported that 160 startup enterprises in the province attracted a combined investment of around Rs 2.56 billion, with approximately 61 percent contributed as equity and 39 percent as loans. The study found that most startups operate in agriculture and forestry, followed by manufacturing, services, tourism and information technology, indicating a gradual diversification of the provincial economy.
Healthcare Koshi province stretches from Himalayan region to the Terai belt due to which health facilities are more viable in Terai than other parts. Koshi Province has 791 public health facilities including four large hospitals (
BPKIHS,
Koshi Hospital, Nobel Medical College, Birat Medical College). Altogether, there are 18 public hospitals, one regional medical store, 41 primary health centres, 648 health posts, 34 urban health care centres, and 41 community health units.
Energy There are various power stations in Koshi province: •
Mai Hydropower Station is one of station located in Illam and was established in 2014 producing 22 MW energy. •
Puwa Khola Hydropower Station is located in Illam with capacity of 6.2 MW energy and was established in 1999. •
Chatara Hydropower Station is located in Sunsari District with production capacity of 3.2 MW energy. It was established in 1996. •
Iwa Khola Hydropower Project was established in 2018–19. •
Upper Mai Hydropower Station is located in Illam with a capacity of 12 MW. •
Pikhuwa Khola Hydropower Station is located in Bhojpur with a capacity of 5 MW. •
Hewa Khola-A Hydroelectric Project is located in Pachthar with a capacity of 14.9 MW. •
Jogmai Khola Hydropower Station is located in Illam with a capacity of 7.6 MW. •
Upper Puwa-1 Hydropower Station is located in Illam with a capacity of 3 MW. •
Upper Mai-C Hydropower Station is located in Illam and was established with a capacity of 6.1 MW. •
Kabeli B1 Hydropower Station is located in Pachthar and was established in 2019 with a capacity of 25 MW. •
Lower Hewa Hydropower Station is located in Pachthar and was established in 2017 with a capacity of 21.6 MW. •
Mai Cascade Hydropower Station is located in Illam and was established in 2014 with a capacity of 8 MW. •
Puwa Khola-1 Hydropower Station is located in Illam and was established in 2014 with a capacity of 4 MW. •
Solu Hydropower Station is located in Solukhumbu and was established in 2016 with a capacity of 23.5 MW. •
Molun Khola Small Hydropower Station is located in Okhaldhunga and was established in 2019 with a capacity of 7 MW. •
Upper Khorunga Hydropower Station is located in Tehrathum and was established in 2018 with a capacity of 7.5 MW. •
Super Mai Hydropower Station is located in Illam and was established in 2020 with a capacity of 7.8 MW. •
Super Mai-A Hydropower Station is located in Illam and was established in 2020 with a capacity of 9.6 MW. •
Super Mai Khola Cascade Hydropower Station is located in Illam and was established in 2020 with a capacity of 3.8 MW. •
Mai Khola Small Hydropower Station is located in Illam and was established in 2008 with a capacity of 4.5 MW. == Provincial Assembly ==