March 29: Industrialist Vinay Shah had planned to open a new industry in the Bara-Parsa Industrial Corridor and had allocated money to buy land for establishing the factory. However, after months of struggle, he couldn't find the needed space to set up the factory.

"It simply came to our notice that despite having capital for investment, we couldn’t find land,” complained industrialist Shah.

Shah is not the only industrialist who is facing problems to get land for setting up a new industry in the industrial corridor. Chairman of the Bara-Parsa chapter of the Confederation of Nepalese Industries, Birendra Kumar Shanghai said that it has become very difficult to find land for new industries in this corridor where about a thousand industries are operating.

Investors are attracted to this corridor due to its prime location, physical infrastructure and easy access to sea routes and major ports. Bara-Parsa is expanding as an industrial corridor not because of government incentives but because of this convenience. With the opening of the industry, the price of land has also skyrocketed.

So much so that more than 25 percent of the industry's total investment goes for the purchase of land. "It is now challenging to set up a new industry in the Bara-Parsa corridor," said Hari Gautam, coordinator of the industry committee under the Birgunj Chamber of Commerce and Industry.

As Birgunj is a suitable area for industrial establishment due to the availability of physical infrastructure and geography, the industrialists said that the government should arrange land for industry in the Bara-Parsa area.

Industrialists say that getting land for industry in Bara-Parsa is almost impossible at the moment, and opening an industry on highly-rated land would be risky. Entrepreneurs say that the price of land that used to be Rs 500,000 per Kattha has now reached as much as Rs 3 million per kattha.

The Bara-Parsa Industrial Corridor is ahead of other areas in terms of industrial potential. However, a study report made public by Nepal Rastra Bank some time ago said that it is difficult to get land, and even if you get it, you have to pay a high price.

The industrialists of Birgunj have urged the government to find at least 2,000 bighas of land in the Thori area of ​​Parsa and create a new industrial zone.

Shanghai said that the industrialists would be attracted to the area as the main checkpoint is close to Birgunj, and the postal highway is easily accessible.

Industrialist Shah suggested that the government should sell the land in such areas by preparing the minimum infrastructure required for the industries. “The land should be sold to the industrialists on condition that the industry should be opened within a certain time and the land is utilized for  the intended purpose,” he said.

The government had announced to create a new industrial zone in the same province five years ago. An industrial zone has been proposed in the Sagarnath forest area of ​​Sarlahi for Madhes Province. However, compared to the Bara-Parsa region, it will not be suitable, says the entrepreneur.

The Gajendra Narayan Singh Industrial Area which has already been set up in Saptari is not in use.

The industrialists say they are more interested in this region than the special economic zone of Simara, Bara because of the requirement of export-oriented industries in the SEZ.

Conflict has escalated in the Bara-Parsa corridor due to the simultaneous expansion of industry and human settlements. Entrepreneurs suggest setting standards for expansion of human settlement around the newly opened industrial zone.