Only 9 industries are operational in the Motanga and Jigmeling Industrial Parks, whose combined capacity is 75
Out of a total capacity of 75 industries in Jigmeling and Motanga Industrial Parks, only nine industries were found to be operational as of May 2023. Jigmeling Industrial Park, where only two industries were found operational, spans an extensive 733 acres and boasts a total allocable area of 427.48 acres, and was envisioned to accommodate up to 45 industries. Similarly, the occupancy rate in Motanga Industrial Park in Samdrup Jongkhar is less than ideal. Out of a capacity to house 30 industries, only seven were found to be operational.
As the largest industrial park among the four estates in the country, Jigmeling Industrial Park was primarily designed to foster growth in heavy industries, with development work initiated in 2009 after comprehensive feasibility studies and activities dating back to 2006. The detailed project report was completed in 2015, and the actual development work commenced in 2016.
The current status of plot allocation within Jigmeling Industrial Park has been dismal with 12 industries still under the process of obtaining licenses, three industries need to sign lease agreements, and one industry is yet to submit necessary drawings.
Additionally, 15 industries have received approval for their construction drawings but are yet to begin the construction phase, while 12 industries are currently under construction.
Only two industries were operational. Among these operational units are two factories engaged in bricks and paper recycling manufacturing, along with the recently launched eco-tech Bhutan Kraft Paper Industry in early 2023.
Furthermore, Jigmeling 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 faced challenges with 15 vacant plots spanning an area of 50 acres that remained unclaimed as of 30th May 2023. The Industrial Park Management Division has announced plans to lease these vacant plots to potential industries to boost occupancy rates and encourage growth.
Similarly, the occupancy rates in Motanga Industrial Park in Samdrup Jongkhar were less than ideal. Out of a capacity to house 30 industries, only seven were found to be operational.
Motanga Industrial Park, covering 155.856 acres, offers a total allocable area of 82.8 acres and can accommodate 30 industries, including four Foreign Direct Investment (FDI) projects.
Among the 30 plots allocable to industries, 16 industries were found to be under construction, while three were in the process of obtaining licenses, and one awaited a Land Lease Certificate from the National Land Commission Secretariat (NLCS).
Further, when categorized, it is found that industries in Motanga Industrial Park, are highly concentrated with small-scale industries, followed by large-scale and cottage scale industries.
However, similar to Jigmeling Industrial Park, Motanga also faced the challenge of low occupancy rates, with 10 vacant plots spread over 10 acres awaiting potential businesses. The Industrial Park Management Division plans to lease these plots soon to stimulate industrial growth in the region.
Meanwhile, Motanga Industrial Park, situated in Samdrupjongkhar, covers an extensive area of 156 acres. It holds the distinction of being the sole park in Bhutan that is entirely financed by the Bhutanese government. In the 11th Five-Year Plan (FYP), the park received a substantial budget of Nu 100 mn for its development industrial growth in the region.
The above details were published recently by the Ministry of Industry, Commerce, and Employment (MoICE) as its annual report for the fiscal year 2022-2023, which presents a detailed overview of industrial estates and parks across the country.
Tshering Pelden from Thimphu
