Manoj Shrestha

Rajbiraj, January 30

Industrials seem to be unwilling to set up industries in the Rajbiraj Industrial Zone (RIZ) any more, established 16 years ago with financial aid from the Indian government.

The industrial area is spread over a 22 bigha 10 kattha area and is around three kilometres north of Rajbiraj at Basbitti VDC. Though the industrial zone has 10 huge buildings constructed to run 10 industries, only eight industries have been established. Out of them, only four — Deepak Polymers, Deepak Plastics, Shangrila Cottage and Bishala Nikita Metal Industries are running.

Suwarna Joshi, manager of the RIZ, said that the government has provided water, electricity and all other physical facilities but industrialists and businesses do not seem to be attracted towards it. He added, "Our neighbouring country has constructed this zone to develop the area, but it is hard to create a suitable environment." He said that the government should declare the zone as tax-free to lure more investors.

RIZ was established on BS 2044 and was handed over to the Nepali government by the Indian government in BS 2051 and the four running industries have been employing 43 people, including 10 women. This industrial zone is the sole industrial area in the Janakpur and Sagarmatha zones. But industries here are slowly becoming sick and thus affecting employment and investment opportunities.

Currently, 127 ropanis of land in the industrial area is bare and a big industrial plant can be established there, said manager Joshi. He added that any industrialist willing to rent the land must pay Rs 1,916 per ropani. The zone has been playing an important role in the development of economy and the government should bring in package programmes to entice industrialists and financers, said industrialist Shankar Sharada.

He further said that a group of representatives from the Indian embassy came to survey for a possible train route from Kunauli to Nirmali for the development of RIZ. However, the government has been unable to take further steps about it, he added.

Since Kunauli is a small transit point, businessmen have to rely on main transit areas — Jogbani, Raksoul and Bhairahawa — for their business and the road route is not reliable. This might be the main reason for businessmen for not favouring RIZ for investment. Most major industries in the country are situated in Birgunj, Biratnagar, Butwal, Hetauda and Duhabi due to their easy accessibility.

Manoj Munghada, chairman of Saptari Chamber of Commerce and Industry (SCCI), said that it was sad that businessmen did not want to set up industries in an all-facility zone.