Neten Dorji

Samdrupjongkhar—After years of slowdown, eastern Bhutan’s biggest industrial park, Motanga Industrial Park, is finally picking up.

Basic infrastructure, such as roads, electrification, and water supply, is complete. Twelve units of staff quarters, installation of street lights, river training works, and landfill are expected to be completed in eight months. 

The 156-acre industrial part in Samdrupjongkhar is the only park in Bhutan funded by Government of India. 

The development of the park began in the 11th Five-year Plan (FYP) when it received a budget of Nu 100 million to stimulate industrial growth in the region.

Motanga Industrial Park: The 156-acre industrial park in Samdrupjongkhar, funded by Government of India, is taking concrete shape. Out of 26 planned industries, 10 have started operations, 11 are under construction, one has shut down, and four are yet to begin construction.

According to an estate official, 26 promoters have leased land for industrial ventures. Out of 26, 10 industries have started operation, 11 are under construction, one industry shutdown and four are yet to start construction. 

The highest number of industries are minerals and chemical-based, followed by six agro- and food-based industries. 

Other ventures include four forest and wood-based industries and construction materials industries. 

“Within the next two years, most of the construction is expected to be completed,” the official said.

All industrial ventures are guided by the 2018 industrial development guidelines.

Many promoters say that the challenges facing aspiring promoters include the regulatory and administrative burden of submitting numerous documents to different agencies.

“The lengthy approval process discourages many promoters from starting a business even if they are interested,” one of them said. “It would be much easier for promoters if departments like the industry and mining support processing of documents and clearances.”

The owner of Shanta Enterprises, Maita Raj Limbu, said he had proposed to start his business on five acres of land. However, the Department of Industrial Park gave him only 1.68 acres. So, he had to withdraw his proposal since the land would not be enough for his business.

Estate Manager Pema Dorji said that the lessees have to submit the documents within six months of obtaining the lease.

“Some promoters obtained leases without a proper plan and sources of finance, some were not interested, while others could not process loans,” he said. “Among four FDI industries, one shut down in 2020 as investors were not interested in investing.”

The estate manager said that there are five more vacant plots. The Industrial Park Management Division has announced the vacant plots to potential industries to boost occupancy rates and encourage growth. 

Some industries could start within a few months of leasing the land, while others took years to start construction due to various factors, such as delays in loan processing. They have a lease agreement for 20 years.

The industrial development guideline mandates that industries start construction after three months of obtaining a lease.

Motanga Industrial Park stands out with the highest concentration of large-scale industries, closely followed by small-scale, medium, and cottage scale industries.

Despite its vast potential, the park has faced challenges.

Most industries in the park have employed Bhutanese workers. However, some industries did not employ Bhutanese, saying they lacked skills, and those they employed resigned after two to three months.