Special Economic Zone Authority (the then Special Economic Zone Development Committee) was established on 2060/10/15 under Ministry of Industry MOI/(GoN) to prepare the SEZ law and relevant rules and regulations, to conduct the pre-feasibility and feasibility studies for establishment of SEZ in different areas of the country, and to construct required infrastructure in SEZ areas, throughout Nepal.The SEZA was formed under theSEZ Formation order 2069.

Presently, SEZA has published its special law, rules and regulations and project proposals books in the name of Special Economic Zone Act,2073 and Special Economic Zone Regulation, 2074. It is also responsible for preliminary site identification, technical and environmental feasibility study, financial viability of the sites identified and the infrastructure development works in Bhairahawa SEZ and Simara.

Bhairahawa SEZ is in the stage of operation now.