Issues in Existing Industrial District and Challenges in Establishment of New Industrial
District in Nepal
Student: Prakash Adhikari
Supervisor: Er. Angishor Shrestha
Submitted Date:
March, 2023
Abstract
Industrial sector plays a pivotal role in the development of a country's
infrastructure and economic growth. The successful operation of the industrial sector can
attract domestic and foreign investors and increase investment in the industrial sector as
well as become a model of industrial sector management. The concept of industrial district
is very old and gaining popularity among industrialists and studies about issues on existing
IDs and challenges to establishment of new IDs, existing ten industrial district as well as
declared and non declared IDs projects by Nepal Government are carried out for the study
propose .The objective of the research is to identify the current issues in existing industrial
districts, to identify the challenges for the establishment of new Industrial Districts in Nepal
and to identify the probable suggestions for effective establishment of new industrial district
in Nepal.
The questionnaire were prepared and data regarding the industrial development obtained
with the concern stakeholders (Industrialists, IDML staff, Industrial association member,
MOICS representative) involved in the field of industrial establishment, operation and
policy levels to facilitate the industrial activities within the country. A structured
questionnaire was prepared and distributed to 96 respondents that comprises of
Industrialists, IDML staff ,Industrial association members, MOICS representative at their
own place. All responses were obtained, which is also include 100% of the total respondents
(considering non responsive rate of respondents). KII was done to collect primary data. The
data were collected using questionnaire survey, analyzed using RII,AHP, SPSS, MS Excel
and presented using the graph, table, and pie charts.
The findings of the study shows that industrialists are not satisfied towards the existing
systems while operating their industrial activities inside the existing industrial district in
Nepal. It has been found that the majority of the respondents have face the technical issues
on water supply system of existing industrial district as performance assessment, reliable
source and billing system of water supply inside existing IDs. Similarly issues related to the
transportation system as not clear road related norms, guidelines and specification, road
safety measures, road width for vehicular movements inside IDs. Issues related to the
scientific land lease rate and increment pattern as per agreement. Issues related to the
industrial building infrastructure i.e. not clear building related norms, guidelines and
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specification, functionality of building structure. It has been found that the majority of the
respondents have face the social issues as conflict between nearby households in the issue
of air pollution and noise pollution from existing IDs. It has been found that the respondents
have face the policy issues as weak budgetary system towards existing IDs infrastructure on
road and building structures.
In this study, the major challenges for establishment of new IDs are technical , political and
policy challenges. Similarly, lack of institutional memory/ documents related to existing
IDs development model for reference, lack of separate technical norms ,specification
,bylaws for construction works related to IDs Infrastructure on technical sector cause the
challenges to establish the new IDs in Nepal. Political interference during declaration of
new IDs, resettlement of slum and squatters from sites of declared new IDs on political
sector cause the challenges to establish the new IDs in Nepal. Lack of clear investment
policy of country towards IDs, lack of clear policy for subsidy to industry established in
new IDs, lack of properly stated policy for development model ,operation and maintenance
of new IDs on policy sector cause the challenges to establish the new IDs in Nepal. To
overcome those challenges conduct need assessment for the requirement of IDs, acquired
land with less environmental and social issues, create the environment for the proper co-
ordination between three level Government, fixation of investment and development model
(PPP, Self by Government, Bilateral Agencies). Also attract to private sector development
of new IDs.
Keywords
AHP, Bylaws, Establishment, Government, Industrial District, Issues, Need
Assessment, Operation and Maintenance.