(1) There shall be a Board of directors in order to conduct or cause to conduct the programmes, as may be required,  for carrying out the objectives of the Institute and to inspect and manage all business of the institute.
(2) Save as provided elsewhere in this Act, the Board shall, subject to this Act or Rules and Bye-laws framed hereunder, exercise all powers
and perform the duties of the institute
(3) Board shall consist of the following members:
(a) Minister or State Minister for industry – Chairperson
(b) Secretary, Ministry of Industry – Member
(c) Secretary, Ministry of Finance – Member
(d) Chairperson, Federation of Nepalese
Industry and Commerce – Member
(e) Chairperson, association of cottage and small industries. – Member
(f) An expert of management nominated by the Government of Nepal – Member
(g) A person nominated by the Board from among the entrepreneurs of private sector – Member
(h) An environmentalist nominated by the Board – Member
(i) Executive Director Member-Secretary
(4) The tenure of office of nominated member shall be two years and they shall be eligible for re-nomination after the termination of office.
(5) The Board may, as per necessity, invite national or foreign expert, advisor or reputed person to take part at the meeting of the Board as
an observer.