In addition to the archive, the library is involved in many other areas like publishing, educational training and development of information technology in Nepali language.

The first acquisitions for what was later to become the Madan Puraskar Pustakalaya were made in the mid-1940s by a Kathmandu schoolboy, Kamal Mani Dixit, with pennies that came from his lunch allowance.

In 1956, the collection received an endowment from Chandra Shumsher JBR's daughter-in-law Rani Jagadamba Kumari Devi.

Madan Puraskar Pustakalaya was officially registered in 1985, under Organizations Registration Act of 1977 of Nepal naming it after late Gen. Madan Shumsher JBR son of Chandra Shumsher JBR and husband of Jagadamba Kumari Devi.

[1] Madan Puraskar Pustakalaya also releases NepaLinux – a Linux flavor / distribution in the Nepali language.