Slow business in Trongsa after completion of hydropower projects

Lhakpa Quendren

Trongsa—Business in Trongsa town has slowed to a crawl following the completion of two major hydropower projects—Mangdechhu and NikaChhu.

The once-thriving businesses are now struggling to survive. Many are closing shops or downsizing operations. And those on the outskirts of Trongsa are particulrly in dire straits.

The hydropower workforce, once the main customer base for local businesses, has left after the completion of the 720 MW Mangdechhu Hydroelectric Power Project in 2019 and the 118 MW Nikachhu Hydropower Project in January 2024, leaving the town empty.

“I feel like we have gone back a decade,” said 55-year-old shopkeeper, Arjun Chhetri, who started his shop in 2010 after leaving the National Workforce, formerly known as PWD workers. “The population has dropped drastically, and business has returned to what it was before the projects began in 2012.”

Daily sales at his shop, once ranging between Nu 30,000 and Nu 40,000, have plummeted to a mere Nu 7,000. The pandemic dealt an initial blow to his business, but the exodus of project workers from Trongsa has made the situation worse. 

“I used to be busy in the shop with my children helping on weekends. Now, I restock only once a month with a Bolero pickup, which used to be done weekly when the business was better. I had to let go of my pickup driver,” he added.

Across Trongsa, businesses of all kinds—hotels, grocery stores, and vegetable shops—are facing similar struggles. Many have sold their establishments, unable to cope with dwindling customer numbers.

“I purchased the shop a year ago, thinking I would generate some income, but it is difficult to even cover the rent from sales. The business has completely declined,” said Tshering Lekso, a shopkeeper in Sherubling.

The downturn has been even harsher for shopkeepers like Tsheyang Lhamo in Kuenga Rabten, a small town some 20 kilometres south of Trongsa. Her daily earnings have nosedived from Nu 5,000-8,000 to barely Nu 500. “After paying a Nu 5,000 rent for my shop and apartment, there’s little left for other expenses,” she said.

“During the Mangdechhu project, demand was so high we could barely restock vegetables in time,” she said. “Now, I sell so little that we end up eating the stock ourselves.”

Adding to her woes, customers left town without paying outstanding debts.

Hoteliers are also feeling the pinch. Many struggle to maintain facilities while trying to offset losses by raising prices. A plate of rice in one town hotel now costs Nu 380, but the rooms lack basic amenities such as towels and soap. Electrical fixtures and geysers are often out of order.

“Most of our rooms remain unoccupied, and I have lost about 20 regular customers at my restaurant,” said Deki, a hotelier. “Our income has dropped by at least 30 percent, but we are just trying to stay in business.”

Vendors like Tashi Dema, who ventured into the vegetable market eight years ago, are watching their stock rot on shelves. “The fruits spoil so quickly that I end up giving them away,” she said.

As the vegetable market is undergoing renovation, some vendors have returned to their villages given the lack of space. Some 13 vendors have been relocated to temporary sheds a few metres below the market. “We were initially moved here for six months, but it has been about eight months,” said one vendor.