BIA Management Limited has already forwarded the request to the industries ministry. “Once the cabinet of ministers takes a decision to this effect, BIA can move ahead with its expansion plan,” Subash Sitaula, manager of BIA Management Limited told Republica.
Spread over 434 ropanis of land, BIA has 67 industries inside its territory. Of these, 56 are in operation, six are under construction and five have remained closed.
But as more and more industries in the eastern Tarai region are migrating to this industrial area, the pressure is increasing on the industrial area here, and thus the expansion plan.
Many of the industries that are moving here are doing so because of the worsening situation in eastern Tarai. “The armed forces have created havoc in eastern Tarai, instilling fear among industrialists; the security is much better here,” Ejaj Alam, president of Rupandehi Industries Association said. The commitment expressed recently by police here to further improve the security situation has also encouraged industrialists to open industries in Butwal.
Another reason that is creating an influx in BIA is skyrocketing land prices. In BIA, industrialists can lease the land for a certain period of time, which means initial investment costs will be lower compared to opening an industry elsewhere, especially at a time when land prices are going up. Good infrastructure, like road and sewage facilities, and sound public utility services like electricity and water, are also other reasons that are pulling industrialists to BIA. The recent decision by the Nepal Electricity Authority to not enforce load-shedding in industrial areas is also considered another reason that is pulling many to the industrial area in Butwal.
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