Access to finance deemed as the main hurdle, however, the government is resolute on attracting proponents
Although the Changchay Cottage and Small Industries (CSI) Park in Tsirang has been completed and is ready to house industries, the Ministry of Industry, Commerce and Employment (MoICE) says that there are not enough takers for the vacant plots.
Of the 9 plots available, 3 have been allotted while 6 remain vacant till date. These include the manufacturing processed cheese and ice cream, production of fruit juices using local fruits, processing of meat, including sausage production, ham production, meat segmentation, packaging and marketing, production of fruit juices, and production of nutraceutical foods from organic raw materials.
Vacant plot announcements have been made in the past, and applicants have been provisionally allotted the land. However, a few have withdrawn citing financial and personal reasons.
“Most of them withdrew because of difficulty in accessing finance as proponents do not have collateral to pledge for loans,” MoICE Secretary, Tashi Wangmo said during the 9th meet-the-press Friday.
She said that for the park to be successful, the private sector should be coming forward. “The government can only set up the facilities, which we have done even prior to the pandemic.”
“A common facility where packaging and labeling could be done is also under construction and will be operationalized soon. Not only the CSIs, but people from the nearby areas can also make use of the facility,” the Secretary said.
The Changchey Industrial Park in Tsirang was planned under the pilot “CSI Industrial Park” of the Startup and CSI Development program in 2020 and was completed by July 2021.
Initially, in 2021, nine plots were allotted to prospective businesses. However, these plans failed when all nine businesses withdrew their proposals, primarily due to difficulties in securing loans amidst the moratorium and other COVID-19 related challenges.
In an earlier monthly meet-the-press, the Industry and Commerce Minister Namgyal Dorji shared that the Department of Industry has been persistent in its efforts to set up the park. “So far, we’ve made four announcements, calling for applications to occupy the plots. These efforts have resulted in the issuance of Provisional Letters of Interest to seven new applicants, although two subsequently withdrew, citing unpreparedness to commence their projects,” Lyonpo said.
The previous government stated that the construction work was impacted by the pandemic, and another reason was the high level of Non-Performing Loans (NPL) which caused the National CSI Development Bank and BDBL to freeze loans.
Lyonpo further added that the department remains vigilant in closely monitoring the progress of the established industries and providing necessary support.
However, the new businesses have faced challenges, particularly in obtaining food clearance certificates from the Bhutan Food and Drug Authority (BFDA). In response, the Department has proactively engaged with BFDA, which has now instructed its Tsirang office to issue provisional certificates. This will enable businesses to proceed with obtaining their business licenses.
Additionally, the Bhutan Power Corporation (BPC) has upgraded the transformer at the site to meet the power demands of the new industries, based on the Department’s request.
Although the basic amenities were reported to be completed during the first government’s tenure, not a single unit was established. The Department of Industry is also collaborating with other Dzongkhags and Gewogs to attract more applicants to the park, aiming to fully utilize the available plots and support the growth of the local economy.
Spread over an area of 1 acre, the park is designed to accommodate approximately 14 CSIs. The project is worth approximately Nu 52 million and was aimed at leveraging Tsirang’s rich agricultural produce to boost local industry.
By Tashi Namgyal, Thimphu
