The deadline to relocate is nearing for industries operating at Damdara in Phuentshogling. However, industrialists are not ready to move and are seeking more time for relocation. Of the nearly 30 factories, none has relocated, while a few have shut down their businesses. The Phuentshogling Thromde says the two-year transition period, agreed in 2024, will end in June this year.
Most industries, including wood-based, food processing, and manufacturing, continue to operate in Damdara.
Factory owners say finding suitable relocation sites is difficult, and financial constraints make the move harder.
They also say relocation is affecting workers, daily operations, transport, and loan repayments, putting existing investments at risk as businesses recover from the pandemic.
“We were told to move to Samtse’s industrial area. But for wood-based industries like ours, it’s very inconvenient. Raw materials come from the Northern side of the country, like Paro and Bumthang, so moving to Samtse adds 70 kilometres for transport each way. It affects the sourcing and delivery of our products,” said Phuntsho Wangdi, the owner of Phuntsho Sawmill and Timber Industry.
Some industrialists who did not want to be identified say relocating private factories could slow Phuentshogling’s overall development. They add that even if they vacate, the thromde will take years to redevelop the industrial area, affecting businesses and the broader economy.
The minister for Industry, Commerce and Employment is set to visit them this month.
“If we are given more time, we can transition gradually. We might take extra loans, but we can rebuild step by step. We don’t want compensation, we just need time,” added Phuntsho Wangdi.
Thromde officials say the relocation process began in 2020, with most land leases expiring by 2025, except for one.
Officials say that the deadline was finalised following consultation with industrialists in 2024.
Thromde officials add that industrial activities clash with residential areas, planned land use, and projected population growth.
The thromde plans to transform Damdara into a recreational hub, including an athletic ground, youth centre, town hall, and cinema hall, among others. The development is expected to be completed within the 13th Five-Year Plan, with a budget of Nu 350 M.
Kinley Dem, Phuentshogling
