Land compensation process for construction of Damak Industrial Area (DIA) has kicked off with the publication of a public notice requesting landholders to apply for compensation for land that they will have to relinquish.

In the notice, Industrial Districts Management Limited (IDML), a state-owned enterprise which looks after all the industrial areas in the country, has requested landholders to apply for compensation with supporting documents within next 35 days. To facilitate compensation distribution process, IDML has also opened Land Acquisition Contact Office in Damak.

The industrial area is being built in Damak as part of the Chinese government’s Belt and Road Initiative, an ambitious plan of Beijing to revive the ancient Silk Road to promote trade and support economic integration across Asia, Europe, and Africa. Nepal and China governments had signed the final agreement on construction of the industrial area two months ago.

The industrial area will spread across 2,200 bighas of land in Damak and Gauradaha municipalities and Kamal rural municipality.

The Chinese government will invest Rs333 billion to build the industrial area, which will house 90 enterprises of international standard, including those that manufacture electronic goods, automobiles, garments and food items.

About 40 percent of the industrial area would be open space or occupied by school, bank, hospital, shopping mall and housing units for workers. The detailed project report of the industrial area is currently being drafted.

The industrial area would enable Nepal to gain access to Indian, Bhutanese and Bangladeshi markets through nearby Nepal-India border points, according to Govinda Thapa, chairman of Damak Industrial Area Management Committee (DIAMC).

“In the initial phase, the industrial area will host enterprises and factories related to agriculture, herbal products, automobiles and daily consumables,” Thapa said, adding, the industrial area will employ over 65,000 people within next five years.

According to Thapa, construction of the industrial area will kick off right after compensation amount is disbursed to landowners.

IDML is planning to provide compensation to owners of around 366 bigahas of land in the first phase.

As per this plan, 420 families would receive compensation for their land, Thapa said. The size of these land plots ranges from 3 katthas to over 3 bighas. A fund of Rs320 million has been allocated for disbursement of compensation in the first phase.

“The compensation would be provided after evaluating documents submitted by landholders,” Thapa said.

Padam Sedain, a local resident and former regional secretary of Nepali Congress, said he is glad that DIAMC will acquire his two bighas of land.

“We had not imagined that a huge industrial area would be built on our land. All landholders whose plots would be acquired for the industrial area are willing to cooperate with the authorities,” said Desain, adding, “We hope we will be given adequate compensation.”

Dinesh Adhikari, a local resident, said, “I would gladly provide my land so that our future generation does not have to go abroad looking for jobs.”