Supreme Court Orders Closure or Relocation of Industries Near Lumbini Within Two Years

The Supreme Court has issued a landmark directive to ensure the long-term cultural and environmental preservation of Lumbini, the birthplace of Lord Gautam Buddha. The order requires industries operating within the Lumbini area to either shut down or relocate within two years, directly impacting around 15 establishments, including Arghakhanchi Cement, Jagdamba Cement, Brij Cement, Ambe Steel, and Himal Snacks.

A joint bench of Justices Kumar Regmi and Sunil Kumar Pokharel delivered the order on Wednesday in response to a writ petition filed by senior advocate Prakash Mani Sharma. The Court expressed grave concern over unregulated construction and pollution-emitting industries around the UNESCO World Heritage Site. It instructed the government to halt industrial operations that release emissions within 15 kilometers of the Lumbini perimeter.

Declaring Lumbini’s protection a matter of public interest for all humanity, the Court annulled past government decisions and implementations that contradicted conservation policies. It stressed that industries established before November 27, 2009, must also be prioritized for relocation, and prohibited any capital expansion, capacity enhancement, or alteration of objectives for existing companies.

The decision builds on a 2009 Industrial Promotion Board resolution that barred the registration of new carbon-emitting industries within 15 kilometers of Lumbini’s boundary. The Supreme Court underscored that this measure was intended to maintain Lumbini as a pollution-free zone of both national and international importance.

“Lumbini cannot be replaced. While industries can be shifted, Lumbini has no alternative,” the Court stated. “Industries may generate employment and revenue, but Lumbini itself is a vast spiritual industry. Its contribution to the national economy through tourism cannot be compared with other industries.”

Business operators in the region have expressed concern. Bishnu Prasad Neupane, Chairman of the Saurabh Group that runs Jagdamba Cement, said the government must compensate for investments beyond land costs if relocation becomes mandatory. He noted that around Rs 20–30 billion has been invested in the affected industries.

Neupane also argued that Jagdamba Cement’s grinding unit does not emit carbon. “Grinding units do not burn coal or release carbon emissions. We have installed dust-control systems. Claims that dust travels 15 kilometers to reach Lumbini are unfounded,” he stated. He insisted that operations were carried out in line with environmental assessments approved by government authorities.

The ruling is considered a historic step toward safeguarding Nepal’s cultural, environmental, and religious heritage, ensuring that Lumbini’s sanctity is preserved for future generations.