Neten Dorji
Pemagatshel—Even after commercial plots were allocated eight years ago, the development of Pemagatshel’s new township in Denchi is moving at a snail speed.
A majority of landowners and business proprietors in new Denchi township have not been able to begin construction due to the prevailing loan moratorium.
For most plot owners, the lack of access to housing loans is the primary hurdle. This has left the new township in a state of stagnation.
Out of the 29 commercial plots, only 12 have completed construction so far. And of the 72 residential plots, only two have completed the construction. There are seven industrial plots, six institutional plots, eight service plots, and six mixed plots.
“Those who have the means have completed their homes, but many of us are stuck waiting for the loans,” said Sangay Wangdi, a local resident.
The Denchi town secretary, Jigyel Phuntsho Dargay, said that while the government has announced moratorium lift on housing, there have been no changes at the grassroots level. “The banks should consider special provisions for Denchi to facilitate our development.”
Denchi plot owners claim that numerous loan applications have been denied by financial institutions, despite their ability to repay through rental income. They argue that lifting the housing loan moratorium would act as a catalyst for both residential and commercial construction.
Yet, there are other obstacles.
Businessman Jangchu Dorji said that strict building regulations cap building structures at three storeys, including the ground floor.
Poor road conditions add to their woes. “The dust in winter and the mud in monsoon make it challenging for customers to visit the town,” he said.
On the infrastructure front, some progress has been made. The Dzongkhag administration has installed a fire hydrant system, completed a water treatment plant, and established a water distribution network. However, the sewerage system is under construction.
Pemagatshel Dzongdag Tashi Dawa said that of the 134 plots allotted, around 25 percent of plot owners have constructed their buildings. “Three buildings are currently under construction, and we have received seven new construction proposals, along with their design and drawings approved.”
Planned township development activities include internal road construction and blacktopping, construction of stormwater drainage system and footpaths, public ground, underground service cable ducts, and street lighting.
The new town will have public amenities such as a Basic Health Unit, a primary school, and recreational parks.
“The development of Denchi town is in its initial phase. Our vision is to transform it into a smart, climate-resilient, green, and thriving hub of human settlement,” the dzongdag said. “All planned development projects will adhere to the best socio-economic engineering practices.”
However, budget limitations have stalled progress.
The population of Denchi Town is projected to reach around 3,000 in the next 20 years. As a result, plots have been developed to accommodate only three-storey buildings, considering the town’s carrying capacity of over 5,000 people.
Established in the 1980s, the old Pemagatshel town near the old dzong was a cluster of semi-permanent structures, mostly grocery shops and restaurants. The area was unstable, congested, and too small for expansion.