Rupandehi district, in southern Nepal, will soon transform into a major industrial hub with new manufacturing units pledging to invest billions of rupees in the near future.

Over 300 large firms have committed an investment of Rs 1 billion each. Further, the district has registered around 600 medium-sized firms and these too would invest a sizeable amount. Over 10,000 firms in the district are registered as small and cottage firms.

The large and medium factories cover cement, steel, iron bars, soaps, bricks, energy, agriculture, forestry, food processing, leather, and plastic and metals sectors. 

In recent years, investment has poured into hospitality industry, food industry such as noodles, biscuit, dough, pulses and beer in beverage sector. Pharmacy sector too has attracted good investment.

Federation of Nepalese Chamber of Commerce and Industries Central Member Surendra Prasad Shrestha says, “In recent years, a large investment has poured into operating factories worth in billions of rupees.”

In the district headquarter Bhairahawa; a Special Economic Zone (SEZ) will open within a month. Two months earlier, SEZ Development Committee published a notice to permit the firms to operate inside the zone within a 15-day window. SEZ will be a home to export oriented industries - a first in the country.

An industrial area is slated to be constructed in Motipur of Butwal Sub-metropolis in 814 bighas of land in the bank of Tinau River. Over 150 medium and large factories are planned to be established inside the facility.

Head of Butwal Industrial Area Tul Bahadur Rana Chettri said, “Examination of soil reveals a large industrial area could be built in this area.” A separate study of environmental impact is also moving forward. 

As Butwal was designated as the temporary capital, entrepreneurs are excited that the place would witness more expansion that is industrial. As the publicity and importance of Lumbini has risen, so has the trend of starting new firms related to tourism. 

Service oriented firms have mushroomed around Butwal and Lumbini. Due to Belhiya border point, it is easy to import raw materials into the district from Indian markets.

Rupandehi Chamber of Industries Chairman Ganesh Prasad Adhikari says, “As the district lies in the central region of the country, it is easy to supply goods to other districts.”

According to Siddharthanagar branch of Nepal Rastra Bank (NRB), the central bank of the country, the total industrial investment of banks in the district is Rs112.65 billion. The bank deposit of the region is Rs89.44 billion. The branch head Ashok Kumar Paudel said in the current fiscal year, investment and deposits have further increased. 

Rupandehi is also the centre of cement production. Various cement firms with investment in billions have opened up in Bhairahawa-Lumbini Corridor and Dhakdhai area. Agni Cement Managing Director Raj Kumar Pokhrel says, “It is easy to import coal and clinker from the short and easy route from India in the district. Alongside, it is easy to access limestone mines nearby.”

Currently, 12 cement factories produce over 100,000 tonnes of cement daily. Cement produced in the district covers 40 percent cement sold in the Nepali market.

Due to publicity of Lumbini as the birthplace of Buddha, the ongoing construction of Bhairahawa international Airport, easy access to raw materials due to adjoining border point with India and continuous development of infrastructure, Rupandehi is poised to become an important industrial hub of the country in the near future.