March 16:
The process of acquiring land for the development of new industries is becoming very difficult in Bara-Parsa industrial corridor due to high prices of land.
Along the corridor, one bigha of land costs around Rs 80 to 90 million. Due to high prices of land, many industrialists complain of high cost of land acquisition to establish their plants or industries.
Hari Gautam, vice-president of Birgunj Chamber of Commerce and Industry (BCCI) , said that the land acquisition along the corridor for a new industry has been a challenging task. There are around 1,000 small and large industries along Gandak to Pathlaiya of Tribhuvan Highway. Land along the main road costs around Rs 10 million per kattha while the land adjoining the feeder road is being sold at Rs 2 to Rs3 million.

The high price for land acquisition has increased the cost for setting up industry, eroding the competitiveness of industries, said Arbindra Amatya, Secretary of BCCI. This could later increase cost of production, he said. “If the cost of production increases, it will have an adverse impact on customers and the overall economy. The government should not delay on introducing policies to lower cost of production,” he said.

Though the cost of the lands adjoining the feeder road is cheaper, they do not have necessary infrastructure required for the industries, according to Rajesh Kyal, an industrialist.
Bara-Parsa industrial corridor has plenty of such potential lands to set up industries, but they lack infrastructures like electricity and roads. "We do not need the land along the main road. But, but there should be basic infrastructure required for industries," said Kyal.

Gautam, vice-president of BCCI, suggests the government to facilitate on land acquisition.

“Generally, industries plan to recover their investments in five to eight years. But, higher cost for land acquisition makes it difficult for industries to get their return,” said Vice-President, Gautam.  The government should make the land acquisition process easier," he said.

Bara-Parsa industrial corridor was not built under any plan. Industries were established one after another due to its proximity and connectivity with the major border.
Industrialists estimate that 1,000 bighas of land is required to expand the Bara-Parsa industrial corridor.

Stakeholders opine that the land allocated for the Special Economic Zone (SEZ) in Simara can be used for this corridor. The government plans to build SEZ in 600 bigahas of land of Birgunj Sugar Mill. However, the progress to construct the SEZ has remained sluggish.