The proposed Nepal-China Friendship Industrial Park in Damak has emerged as a key issue in the Jhapa-5 electoral race after Balen Shah left the project out of his election manifesto.
The multi-billion-rupee industrial park, originally launched as the Damak Industrial Park, is part of China’s Belt and Road Initiative. Former prime minister KP Sharma Oli had laid its foundation stone in 2021 and has pledged to complete it if re-elected. The project lies in his home constituency, which has drawn national attention since Shah entered the race against him.
While Oli has included the park in his 41-point commitment paper, Shah’s decision to exclude it has raised political eyebrows. His team says the project remains controversial and therefore was not listed among his priorities.
The industrial park, planned across nearly 1,500 hectares between the Ratuwa and Mawa rivers, has secured over Rs64 billion in approved Chinese investment under a public-private partnership model. It aims to host industries ranging from manufacturing and textiles to food processing and electronics.
However, the project’s location near the Nepal-India border, close to the sensitive Siliguri Corridor, has reportedly triggered concerns in India. Some Nepali officials acknowledge external sensitivities, although there has been no formal objection from New Delhi.
Debate has intensified after project officials publicly defended the park, arguing it would create jobs and boost eastern Nepal’s economy.
With elections approaching, the industrial park has become more than a development proposal. It now stands at the centre of a broader political and diplomatic conversation about investment, sovereignty and regional balance.