In response to a directive from the Phuentsholing Thromde, the Ministry of Industry, Commerce and Employment (MoICE), through its Department of Industry, has begun coordinating the relocation of over 20 industries currently operating in Damdara, Phuentsholing, to the Dhamdum Industrial Park in Samtse.
The move comes after Phuentsholing Thromde notified the department of its zoning plans, which reclassify the Damdara area as UV-2 LDโan urban zone designated primarily for residential and recreational development. As a result, all industries located on leased land in the area have been instructed to vacate their premises by June 2026, upon the expiry of their lease agreements.
โThe relocation was initiated following the Thromdeโs formal request. We are currently identifying industries interested in moving to Dhamdum Industrial Park,โ a senior official from the Department of Industry said.
Selective Relocation for Clean Industries:
The relocation applies only to manufacturing and production-based industries that meet the environmental requirements set for Dhamdum Industrial Park, which has been earmarked for clean technology and low-polluting enterprises.
Industries considered for relocation include those involved in agro-based processing, wood products, food processing, and other environmentally friendly sectors. Heavy-polluting industries and those not aligned with the parkโs clean-tech focus will not be eligible for relocation.
Advantages of Relocation:
According to the Department of Industry, relocating to Dhamdum Industrial Park offers several advantages, including access to fully demarcated industrial plots, existing infrastructure such as roads, water supply, and reliable electricity. Additionally, there will be no requirement for public clearance, which is often a time-consuming process.
However, all prospective industries must comply with the Standard Operating Procedure for Land Lease at Industrial Estates/Parks, which requires them to submit a series of documents such as a conditional power clearance certificate, citizenship identity card (CID) copy, and company incorporation certificate.
For power requirements below 300 kW, clearance must be obtained from Bhutan Power Corporation (BPC), while industries requiring more than 300 kW must get approval from the Department of Industry under the Ministry of Energy and Natural Resources (MoENR).
Lease Terms and Compensation:
The Thromde has clarified that no compensation will be provided for structures built on leased land whose tenure has expired. Additionally, the lease rent will be charged at the revised rate notified by the Ministry of Finance, as the Thromde does not have the authority to waive or retain the earlier lease rate of Nu. 5 per square foot. This revised rate will apply during the two-year transition period leading up to June 2026.
A formal notification from Phuentsholing Thromde stated: โAfter careful consideration and consultation with relevant authorities, all industries in the Damdara area must vacate the leased land by the end of their lease period. No further extensions or waivers will be granted.โ
The industries that are slated and have been identified for relocation are Bhutan Oil Distributors, Bhutan Board Products Ltd, Green Wood Manufacturing Co., DraLha Flour Mill, Bhutan Polythene Company, Phuntsho Timber Wood Industry, Tashi Bakery, Gyaltshen Shabtog Press, Bhutan Wood Panel Industries, Bhutan Milk & Agro Pvt. Ltd, Chundu Timber Industry, Soenam Yangchuk (PET bottle manufacturing), Kinjore Packaging, Yarab Pvt. Ltd (Copper wire industry), Namgay Wood Industry, Leko Packers, PCAL Cement Godown, Chharu Tshongdrol (Rice Mill), Naktshang Crores and Tubes Pvt. Ltd, and Pelden UPVC and Aluminum.
A joint coordination meeting involving the Bhutan Chamber of Commerce and Industry (BCCI), the Association of Bhutanese Industries (ABI), and the affected industries will be held on April 15 at the BCCI office in Thimphu to discuss the relocation process and address concerns.
Sangay Rabten From Thimphu
