(1) If an industrialist wants to declare the industry he/she is operating as a sick industry based on the criteria under sub-section (1) of section 39 and rule 32 of the Act, he/she shall submit an application to the Ministry in the format specified in Schedule-20.
(2) With the application as per sub-rule (1)- the industry shall submit additional capital (equity) investment and business plan for the operation of such industry.
(3) Based on the application and the attached details or documents received according to sub-rule (1), the Ministry, through the sick industry suggestion committee, may carry out necessary investigation and on-site inspection of such industry if deemed necessary.
(4) According to sub-rule (3) during investigation and on-site inspection, if it is deemed appropriate to declare such an industry as a diseased industry in accordance with Section 39 of the Act and this regulation, the diseased high-risk recommendation committee shall submit a report with recommendations to the Ministry.
(5) Based on the recommendations received as per sub-rule (4), if it is deemed necessary to declare any industry as a sick industry - the Ministry may submit a proposal to the Government of Nepal to declare such an industry as a sick industry with the consent of the relevant sectoral ministries and also the Ministry of Finance.
(6) If the proposal received as per sub-rule (5) is deemed appropriate, the Government of Nepal may declare such an industry as a sick industry. (7) If a co-operative organization wants to operate an industry declared as sick use according to sub-rule (6), such co-operative organization shall operate it by following the following conditions:-
(a) To produce goods and services according to the approved purpose and capacity of the purpose,
(b) conditions prescribed at the time of registration of the industry,
(c) Conditions mentioned in the approved Environmental Impact Assessment Report,
(d) the terms of the agreement entered into between the investor of the hospital and the co-operative society operating the said industry,
(e) 8 Instructions and orders given by the industry registration body.