(1) Government of Nepal may establish prisons as per requirement.
(2) Subsection. According to (1), the government of Nepal shall designate the prisons as federal prisons or provincial prisons based on security sensitivity, physical infrastructure, management capacity, administrative ease and geographical location.
(3) Notwithstanding anything contained in sub-section (2), prisons established as open prisons or special prisons shall automatically remain federal prisons. (4) Prisons existing at the time of commencement of this Act shall be designated by the Government of Nepal as federal prisons or provincial prisons on the basis mentioned in sub-section (1).