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Administrator) of Ilam, initiated tea plantation for the first time at Ilam. It is said that he was very much impressed by the taste of tea and fascinating beauty of tea gardens of Darjeeling. So he brought tea-technicians from Darjeeling and made local people join hands in tea plantation. His effort was later followed by planting tea in Ilam and Soktim in the year 1865 (both plantations are still under commercial production). It is believed that the tea seedlings were given by the Chinese government as gift to the then prime minister Jung Bahadur Rana. The first tea processing factory was established in the year 1872, in Ilam Tea Estate.

But the further expansion of tea plantation lay virtually stagnant for about a century. No efforts were found to be made by the government or private sector in this direction. It was only in 1959 when Budhkaran Tea Estate was established at Rangiadanga (Maheshpur VDC, Jhapa), the first tea estate in private sector. Soon after this venture, a few other landlords also started tea plantation in Jhapa district, which gave birth to some tea estates such as Satighatta Tea Estate, Himalaya Tea Garden, Nakkalbanda Tea Estate, Mittal Tea Estate, Giribandhu Tea Estate. These tea estates are still among the leading private sector tea companies of Nepal. However, these plantations were done more with the motivation of saving the land from land ceiling being imposed under the Land Ceiling Act in 1963, because all the plantations during that period were started by big land holding families. This can be seen in some of the plantation fields of those days having the tea bushes at the distance of more than two feet. These ventures, however, opened the door for other entrepreneurs in tea sector.

In the history of tea development in Nepal, the establishment of Nepal Tea Development Corporation (NTDC) is considered to be a landmark to augment the tea cultivation. NTDC was established in 1966, with the joint effort of the Government and Overseas Development Administration (ODA), Britain with the objective of making the country self-reliant in tea by producing more tea, thereby, substituting import of tea and earn foreign currency by exporting quality tea. Soon after its establishment, NTDC took over the first two tea plantations, namely, Ilam and Soktim tea estates. NTDC then extended tea plantation in Kanyam (Ilam) in the year 1971, with the aim of producing exportable quality tea. One year later, another tea garden was established in Tokia (Jhapa) in 1972. Keeping in view of the increasing internal demand of tea another tea estate was established in Barne (Shantinagar VDC, Jhapa). Later, two more tea estates, namely, Barradashi (Jhapa) and Chilingkot (Ilam) were established; making altogether seven tea estates under the ownership and management of NTDC. Despite its significant contribution for the development of tea cultivation, the only government owned corporation faced acute financial and managerial problems in the latter years, and eventually NTDC was leased out to the private sector in the year 2000. The management of NTDC was handed over for 50 years to Triveni Group, with the condition of keeping all workers in 'as it was' form and terminating all staff under voluntary retirement scheme with extra two months' salary as a golden handshake.

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