At the time, goods brought from Kolkata to Sugauli through railway used to be brought to Kathmandu on carts through the Birgunj-Bhimphedi route. This made Birgunj a key trade route.

After the Indian Railway expanded to Raxual and later to Amalekhgunj of Nepal, Birgunj further consolidated its image as the biggest trade route of the country. Linkage with the railway prompted industrialists to set up factories in the Birgunj-Pathalaiya region. There are now around 1,000 industries in the region.

Parsa district alone contributes 25 percent to the government revenue. Birgunj customs collects revenue worth Rs 160 million on every day on an average.

Now, efforts are being made to further develop the sub-metropolitan city. Integrated check posts (ICPs) are being established on both sides of border. There is a dry port at Sirsiya, near Alau where the Indian Railway its provides services to transport cargos. An improved four-lane road links the ICP with the dry port.

Due to increased industrial and trading activities, Birgunj has been attracting an increased number of new residents. Paddy fields at Alau, Sirsiya, Khalwatola and Ramgadhawa VDCs near the town are being plotted to erect buildings. Urbanisation in Alau is clearly visible with the development of concrete buildings, petrol pumps, and vehicle workshops. Urbanisation gained pace since the establishment of the dry port about a decade ago.

Given this context, Birgunj Chambers of Commerce and Industry (BCCI) has introduced a concept of “Greater Birgunj” to accommodate emerging urban areas.

“The concept was floated with an objective of developing the area as the economic capital to lead the country towards high economic growth,” said BCCI President Ashok Vaidya.

The proposed “Greater Birgunj” accommodates Birgunj Sub-Metropolitan City, Kalaiya Municipality of Bara and 35 other VDCs of two districts covering 600sqkm area. The concept holds significance given the fact that it incorporates major infrastructure, including dry port connected with Indian Broad Gauge Railway, ICP, proposed second international airport in Nijgadh, proposed Nijgadh-Kathmandu Fast Track and Simara-Kathmandu air link.

However, entrepreneurs complain the government has ignored Birgunj’s development despite its potential to become a key industrial and trading hub. Despite the presence of around 1,000 industries in Birgunj-Pathlaiya area, the region has not been declared industrial corridor like the Sunsari-Morang Industrial Corridor.

“We have been asking every government to declare the area as industrial corridor,” said former BCCI President Ashok Temani.