The construction of the Motipur industrial area in Lumbini province, which was planned nearly a decade ago, has failed to advance with the government unable to clear land.

In 2016, the government announced the construction of industrial areas in all provinces, including Lumbini.

Tussles grew after the government decided to remove residents without consulting with them.

In February 2021, despite protests by locals, then-finance minister Bishnu Poudel and then-industry minister Lekh Raj Bhatta inaugurated the Motipur industrial area amid tight security.

In April 2016, the government marked the unregistered 819 bighas of land on the Tinau riverbanks in Motipur, Butwal, for the Industrial Districts Management Limited, which has been entrusted with the overall management and supervision of all industrial districts. Its tasks include conducting feasibility studies of industrial districts or zones in potential areas.

As soon as the land was transferred to the Industrial Districts Management, the locals and squatters in the areas protested the move.

The Butwal Chamber of Commerce and Industry and the Rupandehi Industry Association have been demanding a new industrial area due to the lack of space for new factories in the Butwal industrial area.

Out of the 819 bighas acquired by the government to develop the Motipur industrial area, around 250 bighas have been occupied by unregistered residents, including forests, schools, and temples.

The locals have been protesting for the return of their land.

Locals claimed that nearly 3,000 households have been set up on the land acquired by the government for industrial development.

However, the industrial district management report shows there were only 1,220 households until October 2022.

As the land, which squatters occupied for years, came under the industrial area, the locals have been protesting and obstructing construction work by forming a struggle committee.

The government has prepared a detailed project report of the Motipur industrial area. The estimated cost is Rs12 billion.

Citing that the project would displace 3,000 households, the locals protested by pelting stones during the inauguration event.

While the work has not moved ahead, the protesting locals were removed by deploying police.

Deepak Acharya, chief of the Motipur Industrial Area Management Committee, said the project was stalled for an extended period due to the protest.

In the initial phase, the local government has started mapping the 238 bigha land in Butwal sub-metropolis-17 and -18, where there are no issues.

“The locals also participated in the land remeasurement process,” said Acharya.

As per the provision, the Environment Impact Assessment (EIA) report needs to be submitted for approval within three years of boundary delimitation. “But since the report has not been submitted for a long time, boundary remeasurement works need to be restarted,” said Acharya.

“We will start boundary remeasurement from the land where there are no issues. The construction of the industrial area will move ahead within a few months by taking the local residents on board,” he said.

After boundary remeasurement, Acharya added, the report will be tabled in the Cabinet for approval.

In 2016, the government established the Motipur Industrial Area Management Office to work on the project.

The office has divided the land into five categories, with 262 plots in one block and 152 plots in another for industry establishment.

The locals have demanded alternative arrangements for settling down before starting the construction.

Hari Prasad Aryal, president of the Butwal Chamber of Commerce and Industry, said the delay in developing the industrial area may affect economic activities and jobs creation in Lumbini province.

“If the government tries to build an industrial area on 819 bighas without addressing the locals' grievances, it will be difficult. The locals will not allow it. The government should listen to their grievances first,” said Aryal.

Ram Prasad Pandey, president of an ad-hoc struggle committee of locals, says the government should build an industrial area elsewhere, and not drive people out of their settlement.

“Locals are not against industrial areas. But the affected residents of 40–50 years need to be managed well,” he added.