Industrial Area Expansion (Editorial)

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Of the 15 new industrial zones proposed by the government, construction of six zones has been expedited to be completed in the next five years. Prime Minister KP Sharma Oli on Monday laid the foundation stone of Daiji-Chhela Industrial Area in Kanchanpur. Similarly, he is scheduled to lay the foundation stone of China-Nepal Friendship Industrial Park in Damak on December 3. Meanwhile, the foundation stone of industrial zone will be laid in Banke, Rupandehi and Makwanpur. As per the policy of the government to establish industrial zones in all the states, the construction work of six out of 15 industrial zones has been taken forward. In the current policy and budget statement of the present government, budget has been allocated to establish at least one industrial zone in all the states. With the completion of basic homework such as land acquisition, detailed project report (DPR) and approval of Environmental Impact Assessment (EIA) report required for the construction of the industrial zone, it is certain to facilitate industrial investment by constructing a well-equipped zone in the next five years. The government had decided in April 2013 to build Daijichela (Far West) of Kanchanpur, Naubasta of Banke and Motipur (Lumbini) of Rupandehi, Shaktikhor of Chitwan and Mayurdhap (Bagmati) of Makwanpur and Damak (Province 1) of Jhapa. The construction of industrial zone will facilitate the industrialists in rent, land consumption, electricity supply, transportation of raw and manufactured goods and also in the work of social responsibility such as operation of child care center for the workers. The establishment of six more industrial zones is estimated to cost around Rs 1.5 trillion. After the state has made such a huge investment, it is equally necessary to encourage the establishment of industries in the industrial sector. There will be no shortage of funds as the Industry and Finance Minister has made a joint commitment to provide the required Rs. 25 billion for the construction of Mayurdhap, Daijichela and Naubasta industrial zones to be built with indigenous investment. As foreign investment is being sought in the construction of Shaktikhor and Motipur industrial zones, the first requirement will be to ensure resource management.

With the aim of building the most modern industrial park in South Asia with the help of the Chinese government in Damak, it is important to keep in mind the facilities available in the industrial areas of emerging economies in Asia, including Japan and China. The Investment Board has already approved Chinese investment for the construction of this industrial zone named as China-Nepal Friendly Industrial Park in July 2076 BS. This industrial zone to be built in Nepal under China's Belt and Road Project will help in diversifying industrial investment and trade between Nepal and China. The joint or sole investment of Nepali and Chinese in the industries including electronics, automobiles, garments and food grains to be established in this region will make a significant contribution to the overall economic sector of Nepal. As it is estimated that around 131,000 people will get direct employment after the operation of this industrial zone, this project will prove to be a cornerstone in the economic growth rate and employment growth of Nepal.


The experience of the industrialists who have been saying that there are procedural and other practical problems in setting up industries in the existing industrial areas should also be addressed in the construction of the existing areas. Since various types of industries will be established within the industrial zone, it is necessary to formulate a strategy on whether the building / structure required for that will be constructed by the Industrial Area Management Limited or in private partnership. Looking at the trend of operating industries by renting land outside the industrial areas rather than opening industries in some industrial areas, it is seen that much improvement is needed in the industrial sector. On the other hand, even if such areas are initially set up away from residential areas, it is necessary to pay attention to the problems brought about by the tendency to live near industrial areas by using the available infrastructure such as electricity and street water. Some locals have also demanded the closure or removal of industrial areas near the settlement. Initially built far from the city, but due to unauthorized settlement expansion, some industrial areas have been shifted to the middle of the city and there is a need to transfer those areas. If the distance and criteria of the industrial area and residential area are not clear now, the current problem may recur in future. 

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