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Loopholes in the Guideline for Development of Industrial Land 2018?

May 25, 2021
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As per the Guideline for Development of Industrial Land 2018, no residential quarters in any form shall be permitted in an industrial park and staff should not use office buildings or plant buildings for any residential purposes. However, the S.D Eastern Bhutan Ferro Silicon Private Limited in Samdrup Jongkhar was found to be building staff quarters within the allotted land in Montanga Industrial Park.

Construction of residential quarters is not allowed in the industrial areas because of risk to health and the dangers of fire accidents in cases of industrial damages and disasters.

Despite the restriction, the S.D Eastern Bhutan Ferro Silicon Private Limited in Samdrup Jongkhar is constructing staff quarters in the Montanga Industrial Park. 

According to the company, works to construct the staff quarter within the park area began before the implementation of the Guideline for Development of Industrial Land in 2018. Construction of staff quarter was initiated in 2017. They further added, the company is not constructing a new staff quarter but only renovating the already existing staff quarters in the industrial park area. The company has constructed staff quarters in 2007, 2012 and 2013 without any objections from the Department of Industry.

However, with the implementation of the new guideline in 2018, construction works were hampered and put to a halt several times. The company also received two warning letters from the Department of Industry asking them to stop the construction works. And as per sources, the Department of Industry objected to the construction of staff quarter only in 2019.

The office also claimed that there was no mechanism of seeking approval to construct residential quarters before the implementation of the guideline and it has already constructed few residential quarters without any intervention.

However, despite seeking several approvals to resume the construction works, the company could not do so as the Department of Industry refused to give the approval. However, the S.D Eastern Bhutan Ferro Silicon Private Limited resumed the construction works last year after getting verbal approval from the Ministry of Economic Affairs.

“Before the pandemic, the construction works were stopped. But now the situation has changed with the pandemic, so in June 2020, I think they were instructed to carry on with the construction works by the Director-General,” said Loknath Sharma, the Economic Affairs Minister.

Lyonpo further added given the current COVID-19 situation in the country, factories have to operate in self-containment mode. “If the construction of staff quarter is not allowed, where will they stay. Moreover, now with the pandemic, factories have to operate in self-containment mode and that’s why they must have given the approval to construct the staff quarter.”

However, Lyonpo informed that the matter will be resolved soon with the review of the guidelines. “Some factories need permanent staff to stay in the factory, and to operate in self-containment mode they need necessary structures inside. So the guideline is being reviewed and the same guideline will be implemented to everyone. However, it does not mean that the whole plot will be allocated for a residential area in an industrial park. Construction of staff quarters will only be provided for critical staff,” said the minister.

For now, although the construction of the staff quarter is not complete in the Montanga Industrial Park, some of the employees can be seen already occupying the building. Likewise, some of the employees are living in cramped makeshift quarters, halls, and even in ECCD centres built by the company.

Kinley Wangchuk/Tshering Dhendup

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