85% of industrial parks complete to diversify economy

Almost Nu 1.5bn has been allocated for the four industrial parks

A budget of Nu 1.6bn has been received from the Government of India (GoI) for the three industrial parks and these industrial estates are expected to be complete by June next year.

This is according to Economic Affairs Minister Loknath Sharma, who shared that efforts are being made to ensure basic amenities are ready as early as possible through June 2023.

According to the minister, as of April 2022, the physical progress of Jigmeling Industrial Park in Sarpang, Dhamdum Industrial Park in Samtse, and Motanga Industrial Park in Samdrup Jongkhar were 83%, 84.5%, and 82% respectively. 

“Industries are simultaneously encouraged to start their construction as basic amenities necessary are provided,” Lyonpo said.

Lyonpo added that investors are preparing and many plots are already allotted where promoters are at different stages of the approval process for construction.

“It is expected to move swiftly hereafter as we emerge from the pandemic,” the minister said, adding that the ministry intends to follow up and pursue with investors ready and cancel the land allotment of those not ready yet.

Once the industrial parks are complete, Lyonpo said the spaces within the parks are to be occupied by several factories, which is expected to create thousands of employment opportunities.

“It will diversify our economy and increase the percentage of the GDP due to industries.”

“Industrial development is the key to the diversification of the economy, job creation, export enhancement, and revenue generation, among others. The allocation of land in the three industrial parks was started at the beginning of the 12th FYP,” Lyonpo Loknath Sharma said.

A total of Nu 724mn has been allocated for the development of Motanga Industrial Park, where Nu 123.5mn is from the RGoB and the remaining Nu 601.43mn is from the GoI funding.

The budget for both Dhamdum and Jigmeling Industrial Parks is from the GoI and the total budget for the development of Dhamdum is Nu 536mn and Nu 468.5mn for Jigmeling in the 12th FYP.

Meanwhile, a few factories have already started operating and a few are under construction in the industrial parks. The allotment of all the land in these parks to the promoters is planned by the end of 2022 and these industrial parks will house different types of manufacturing industries.

According to the economic affairs ministry, the Jigmeling and Motanga are designed for medium and heavy industries that are of polluting nature, and Dhamdum is for medium to low polluting industries due to its proximity to the Samtse town area. 

Lyonpo Loknath Sharma shared that the scope and goal of the designated industrial parks are to enhance export, create jobs, and diversify the economy.

“The lesson learned from the existing industrial estates like Pasakha is positive as it can generate jobs, enhance export potential, and generate consistent revenue to the exchequer,” the minister added.

Kinley Yonten from Thimphu