Industrialists in the Sunsari-Morang Industrial Corridor are facing shortage of land plots to set up factories amid rampant land plotting.

Even the available land plots are very expensive, making them unaffordable for the industrialists. “Until five years ago, the prices were just 10 percent of today’s prices,” lamented Ramesh Rathi of Merchant Association, Morang. “Now, the land price and the cost of setting up a factory are equal.”

From Morang’s Tankisinwari to Sunsari’s Itahari — where most of the industries are based — land prices have increased from Rs1 million per Bigha to Rs12 million over the last five years.

Rampant land plotting and expansion of residential areas have resulted in the situation, according to Nawal Kishor Kabara, vice-president of Morang Industry Association. “The situation is such that we have now stopped thinking about buying land in the corridor to set up factories,” he said.

There are around 600 industries in the corridor. And as the industries are scattered, they are surrounded by residential houses. The locals are actively complaining about sound and air pollution.

Infrastructures like road, light and water is mandatory for setting up industries. But these facilities also result in the expansion of residential areas. “Wherever these infrastructures are available, residential buildings are erected,” said Subash Acharya, a member of Merchant Association, Morang.

Although the government has selected 15 locations for developing special economic zone (Sez), there has been little progress on this front.

Even after its completion, Bhiarahawa-based Sez has yet to come into operation.