Dispute on compensation for industrial park in Damak

Published On: February 19, 2020 12:14 PM NPT By: YUBARAJ BIBASH

DAMAK, Feb 19: The local government body has shown dissatisfaction on the matter of compensation for the construction of the China-Nepal Friendship Industrial Park in Damak. The body has demanded proper management of the squatters living in the area set aside for the industrial park.

The compensation for the first phase of the project has already been distributed. The industrial park is being constructed in Damak, Gaurahadaha and Kamal covering 2,100 bighas of land. According to Menuka Kafle, head of Kamal Rural Municipality, the local body need to rethink about those people who do not have land registration certificates. In a program organized by the Investment Board and the Industrial Area Management, Damak, Kafle said, “Most of the people who are removed without compensation will face problem to provide for their families.”

According to Rohit Kumar Shah, head of Gaurahadaha Municipality, as the process to occupy land for the industrial park has moved forward, the local body should also look after financial management of those people who have received compensation. “Still some matters are not clear; there are even questions raised about the compensation of land,” said Shah. According to Rom Nath Oli, head of Damak Municipality, there must be execution of plans to uplift the living standard of the people living near the industrial park.

According to the Investment Board, Rs 210 million has been provided as compensation to the people so far. “In the first phase, the park will be constructed in 1,200 bighas of land and the construction will be completed within three years,” said Bal Ram Rijal, joint secretary of the board, “After that, the second phase of the construction will be started.”

The park will be operated by a Chinese company for 40 years. The industrial area will have 98% investment by China and 2% investment by Nepal. According to Rijal, within mid-April, the Detailed Project Report (DPR) will be prepared and the work will be forwarded. The government will provide land to the Chinese company for 40 years. According to Nanda Kishor Basnet, chairman of the Industrial Area Limited, compensation will be provided for 411 bighas of land.

“The government has allowed permission for investment of Rs 64 billion,” said Basnet, “If any situation occurs which requires more investment then the government will further.” Basnet claimed that this will be the country's model industrial park. “We will provide training to develop skills to uplift the living standard of those who have received compensation,” said Basnet.

“The compensation rate is insufficient even for those who have land registration certificates,” said Devi Prasad Dahal of Damak-10, “The procedure is silent for those who have stayed in the slums for years and who have field book but do not have the land registration certificates.”

For the second phase, the projected land of the industrial area is divided into four divisions and compensation will be distributed accordingly. The land in the project area in Kamal Rural Municipality is divided into Kha, Ga, and Gha class, whereas Damak and Gaurahadaha area has been divided into Ka, Kha, Ga and Gha class. According to the Compensation Determining Committee, settlement area and road under 'Ka' class will get Rs 4.5 million per bigha and land of 'Kha' class will get Rs 3.9 million. Similarly, land of  'Ga' class will get Rs 980,000 and land of 'Gha' class will get Rs 200,000 per bigha.

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