ABSTRACT The first known exercise in collecting data on artisanship and processing of primary products was undertaken during the time of Rana Prime Minister Juddha Shumshere Rana. But, it was not a nationwide exercise. It was an effort to collect the information on artisanship and mapping the resources available in the vicinity of Kathmandu. Efforts to collect data on industrial activities on a regular basis started only after the formal establishment of the Central Bureau of Statistics as a national agency for collection, management and production of statistics under the Statistical Act of 1958. The first Census of Manufacturing Establishments (CME) was carried out in 1964/65. (2022 B.S.) The second census was carried out 8 years later in 1972/73 (2030 B.S.). Thereafter, the CMEs have been carried out in 5 years intervals. The years of implementation of the CMEs are given below: The CME 2006-2007 is the ninth Census of Manufacturing Establishments of Nepal. As seen above, CME has been conducted in the Nepali year ending at 4 and 9. The CME covers all units that engaged 10 or more persons. These units may or may not use power or auto machines in their industrial operations. This coverage is adopted in CMEs since 1991/92. Before 1991/92, i.e., up to the fifth CME, it covers all manufacturing establishments engaging 10 or more persons or using auto machines irrespective of persons engaged. Main Changes in the census procedures over the years It has been more than 4 decades since the process of census of manufacturing establishments were initiated in the country. There have been considerable changes in the census process and the census coverage. Some of the important changes are described below: Definition / coverage: From the very beginning establishments of certain size were covered in the census. The establishments engaging 10 or more persons or using mechanical power were covered till 5th Census. This meant use of automotive machines, irrespective of number of persons engaged qualified the establishment to be brought under the census. From the 6th census onwards, only the establishments that engaged 10 or more persons were brought within the ambit of the census. This led to the dropping of many units especially rice, dal and oil mills from the census coverage. This was done because it became almost impossible to identify all establishments that used machines. The use of machines was becoming popular even in very small units. Many new household operated units were found using mechanical power. Data Processing: The data processing of the first and second censuses was done entirely by hand. The manual processing meant a lot of time taken for bringing out the result and also difficulties associated with preparing the tables. From the third census, CBS started to use modern computing machines. At the initial stages, involvement of programmers and processing experts were a must. It would take years to get the data processed and made ready for publication. With the growth of use of micro computers, the processing time has become very short. Furthermore, the officials of the Bureau can do the processing using the standard statistical programs. Classification of industries: In the first four censuses, there was no standard industrial classification. The industries were classified by the CBS without using any internationally acceptable norm or criterion. The CBS first started to use the Industrial classification based on the Nepal Standard Industrial Classification (NSIC), which in turn is based on International Standard Industrial classification (ISIC) in the CME of 1987/88. So the CME was made internationally comparable since the 5th CME. The output tables and indicators of earlier CMEs could not be meaningfully compared at international levels. The Central Product Classification (CPC) developed by the UN was introduced in the census of 2001/02. So now census inputs and output have become internationally comparable. The Census of Manufacturing Establishments (CME) 2006-2007 is the ninth in the series of CMEs carried out in Nepal since 1964-65. The primary objective of CME is to provide updated data on the composition, growth and volume of the manufacturing sector. The census is conducted in “Establishment Approach”. The reference period is considered as the fiscal year 2006-207. There were 3446 establishments found operated throughout the country engaging 10 or more persons irrespective of usage of power machines. Such establishments are called modern manufacturing establishments. Gross value added (GVA) contribution of modern manufacturing sector is Rs. 4100 crore at current prices. Following the international practices, the establishments surveyed are classified according to the Nepal Standard Industrial Classification (NSIC) at 4 digit level and designed results accordingly. There are altogether 23 types of tables presented in the CME final report at national level including employment and earning, fuel, raw material, value of shipment, industrial services and non-industrial services, indirect tax, stocks, capacity utilization, fixed assets. The report contains tables on investment for environment protection and problem faced by manufacturing establishments also. The problems are presented according to the priority given. Lack of raw material (25%) is the major problem of the manufacturing sector followed by lack of capital (15%), lack of market (14%) and poor industrial policy (13%) respectively. Ten (10) indicators including number of establishments, number of persons engaged, number of paid employees, wages and salaries, value of stocks at the end of the year, gross addition of fixed assets during the year, gross fixed assets at the end of the year, value of output, value of input and value added are defined as principal indicators. The principal indicator tables of Nepal and Urban/Rural are prepared by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit levels in the National Report. But the principal indicator tables of district by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit level are kept in the District Level report. Cost of raw materials purchased and the value of shipments are presented according to the Central Product Classification code at 4 digit levels at national level only. SCOPE The scope of the CME 2006-07 includes all manufacturing establishments of major division 'D' of the Nepal Standard Industrial Classification 2000. In general, manufacturing establishments are classified on the basis of the principal type of products produced. There are following 23 Divisions, 53 Groups and 117 Classes of Major Division “D”, that is, "Manufacturing and Recycling" in the NSIC. Division Description 15 Food products and beverage 16 Tobacco products 17 Textiles, carpet and rugs, jute and jute goods 18 Wearing apparel; dressing and dyeing of fur 19 Tanning and dressing of leather 20 articles of straw and plaiting materials 21 Paper and paper products 22 Publishing, printing and reproduction of recorded media 23 Coke, refined petroleum products 24 Chemicals and chemical products 25 Rubber and plastic products 26 Other non-metallic mineral products 27 Basic metals 28 Fabricated metal products, except machinery and equipment 29 Machinery and equipment N.E.C. 30 Manufacturing of office accounting and computin machinery 31 Electrical machinery and apparatus N.E.C. 32 Radio, television and communication equipment and apparatus 33 Medical, precision and optical instruments, watches and clocks 34 Motor vehicles, trailers and semi-trailers 35 Other transport equipment 36 Furniture; manufacturing N.E.C. 37 Recycling Major Division D With respect to subjects concerned, CME provides the following information as included in the questionnaire: - total number of manufacturing establishments engaging 10 or more persons; - legal status, ownership and major manufacturing activity of the establishments; - employment (no.of employees by sex and citizenship and their emoluments); - the quantity and value of production, purchase and sale of fuel; - the quantity and value of raw material purchased by CPC and country; - the quantity and value of production and sale of product by CPC and country; - the opening and closing stock amount of fuel, raw materials, finished goods, semi-finished goods; - the income from and expenditure of industrial services; - the income from and expenditure of non-ndustrial services; - the amount of indirect taxes paid, e.g. VAT, excise duty, import duty, export duty, etc.; - capital formation and fixed assets; - capacity utilizations; - pollution control efforts done by the establishments; and - major problems faced by the establishments during the reference period. COVERAGE Geographic Coverage National including all 75 districts of Nepal. Geographic Unit District Universe All establishments that are classified in NSIC Division D, Manufacturing, and employ at least 10 persons are included.