The government has decided to reassess the detailed project report (DPR) of the Motipur Industrial Area in southern Tarai, amid discontentment among the locals who have refused to surrender their land to the project.

Earlier, in 2021, four people died in a violent protest over the land issue.

Many people living on the land do not have land ownership documents.

The work on the project has been halted after the authority failed to conclude the public hearing on the environmental impact assessment report of the project.

Three years ago, the project was estimated to cost Rs12 billion.

The federal government’s cabinet meeting on March 14, 2016, had announced the acquisition of 813 bigha [550.6 hectares] for the Motipur Industrial Area as per the ‘one province, one industrial area’ concept.

The project has decided to manage the emerging conflict by reducing the proposed industrial area by 250 bigha to 563 bigha [381.3 hectares].

The government had planned to employ 1 million people in the industrial sector.

After the announcement, the Industry Ministry directed the Ministry of Forest and Land Management to transfer land ownership to Industrial Area Management by fulfilling all legal processes.

By completing the land ownership transfer, the detailed project report was approved on June 4, 2018.

According to the detailed project report, the industrial area would house 1,022 factories on the 813 bigha area, which was divided into five sectors.

The government established the project office in Butwal Sub-Metropolitan-19 in 2019.

On March 5, 2021, locals chased away then finance and industry ministers Bishnu Paudel and Lekh Raj Bhatta when they reached Ranigunj, Butwal to lay the foundation stone for the Motipur Industrial Area.

Protest erupted. Four demonstrators were injured during the clash between the locals and the police. Bhatta and Paudel, however, laid the foundation stone and returned.

Locals argued that the industrial zone would affect more than 2,000 families and that they would lose their land.

On October 10, 2021, four people died in a violent clash between police and squatters at the Motipur Industrial Area. Since then, the project work has been halted.

Prakash Adhikari, the chief engineer of the project, said out of 813 bigha, the locals are using around 200 bigha for residential purposes.

Without effective dispute management, the industrial area project cannot not move ahead, he said.

The project, however, has started the detailed land survey using drones.

“We have submitted the report on the residential areas, government land, squatters area and farmland to the National Development Action Committee, which is chaired by the prime minister,” Adhikari said.

“We have decided to manage the conflict by reducing the project area by 250 bigha. The review of the detailed project report will be conducted accordingly.”

“We hope that the agitating locals will agree now. This will also reduce the cost of the project,” said Adhikari.

The proposed site for the industrial estate consists of forests and the dry bed of the Tinau River left behind after the river changed course. Government agencies had proposed constructing the industrial zone in the area arguing that the land was not privately owned.

A decade and a half ago, the Butwal Chamber of Commerce had also tried to set up an industrial estate on 240 bigha in the area.

Meanwhile, Paudel said that continuous obstacles have hindered the construction of the national pride project. “This project will be a game changer for the Lumbini Province.”

“Some elements are trying to stop the development.”

The private sector has established factories by investing billions in Rupandehi which is now one of the major business and economic hubs of the country.

“The project will largely benefit private-sector players. However, the government has not been able to complete the project on time. The private sector is not optimistic that the project will now move ahead,” said Baburam Bohara, former president of the Rupandehi Industry Association.

“Rupandehi could be an economic powerhouse. So, the government should provide incentives and subsidies for its growth,” said Bohra.

“It’s sad that the project is in limbo for almost a decade.”

Bohara said that sufficient land for housing factories, a network to connect the East-West Highway, and the hill districts bordering India are the key factors that make Rupandehi an appropriate place to attract investment. “The investment cost here is very low.”

“The government should not waste its time on unimportant issues. This is a mega project and its success will change the face of the Lumbini province.”