Kathmandu— Industrialists and entrepreneurs seeking to establish new industries in Nepalgunj are facing significant challenges due to the full capacity of the Nepalgunj Industrial Estate, which has reached its limit after accommodating 35 industries since its establishment in 1973. As a result, new businesses have been compelled to purchase costly private land for their factories.

Shortage of Land

Pradeep Parajuli, Chief of the Nepalgunj Industrial Estate Management Office, confirmed that all plots within the estate were allocated long ago and there is no space left for new industries. This shortage has intensified as the Naubasta Industrial Estate, which was intended to provide additional capacity, remains under construction despite progress in resolving land disputes. The Naubasta project’s delayed completion means it will not be operational soon, leaving entrepreneurs with no choice but to buy expensive private land nearby.

Economic Impact

Tanka Dhami, President of the Nepalgunj Chamber of Commerce and Industry (CCI), highlighted that investors from Nepalgunj and neighboring districts have been forced to purchase costly private plots in Janaki Rural Municipality and along the Nepalgunj–Kohalpur road corridor. He noted that despite repeated requests for expediting Naubasta’s construction, little progress has been made, making it difficult to attract new investment due to a lack of industrial infrastructure.

Alternative Industrial Hubs

Krishna Prasad Shrestha, an industrialist, expressed frustration over the unavailability of land in the Nepalgunj Industrial Estate and the high costs associated with private plots. Ganapur in Ward No. 6 of Janaki Rural Municipality has emerged as a new industrial hub due to these constraints, currently hosting around 80 large industries according to the Nepalgunj CCI.

Originally published on abcnews.com.np.