Bhutan’s most populous dzongkhag of Samtse has always had great economic potential with its mineral wealth, location and other factors, but it has somehow never been realized.
However, this will change in the coming years, as a series of major economic projects there can change the face of Samtse.
The first is Norbugang with 187 acres that will be home to around 11 if not more ferrosilicon factories. The closure of Jigmeling for such industries due to the Gelephu Mindfulness City (GMC) means that out of the 8 ferrosilicon factories planned, there around 7 have moved to Norbugang, and there has been one more added to the list making it 8. Of the 8 there 5 are in advanced stages and three starting working with land development and other preparatory works.
The Department of Industry is planning to allot three more plots, there with 8 applicants waiting in the pipeline. The allotments are dependent on if the Ministry of Energy and Natural Resources can assure and allot power for the new factories.
The unique feature of the Norbugang industrial area is that its site development and infrastructure construction is happening parallel to the construction of the factories and infrastructure works are expected to be completed by this year.
Of the 8 factories, around 4 will be commissioned by April 2025 and the remaining by the end of 2025.
The capacity of Norbugang is 300 MVA or 300 MW with factories ranging in size from 50 MVA to 21 MVA to 18 MVA. 63 MW was already put in place and another 240 MW is in the process of being installed via a Bhutan Power Corporation substation bringing the transmission line all the way from Pagli 39 km away.
Norbugang, at full capacity, will need around 500 MW in power.
In the past 15 years or so, Bhutan’s top export after electricity has been ferrosilicon. Bhutan has some good quality quartzite, but it is limited in quantity and so the new factories will have to import them unless new deposits can be found.
Before the Department of Industry allotted the slots, there was some discussion on everybody rushing now and that it could crash if there are too many players, or if prices go down, but then it was decided to give benefit of doubt to the investors who are expected to have done their homework, given that each project can cost between Nu 600 to Nu 700 million (mn). A 20 MVA factory, itself, takes Nu 600 mn to build.
The estimated cost for the Norbugang’s infrastructure is approximately Nu 3.6 billion, with Nu 1.6 billion (bn) allocated for roads and water facilities and Nu 2 bn for electricity.
Bhutan currently has 9 ferrosilicon factories. The challenge for Norbugang will be the supply of power in winter, which will be limited unless Bhutan can come up with more power projects soon.
Apart from Norbugang, another major industrial area coming up in Samtse in the 350-acre Dham Dhum Industrial area divided into A, B and C categories. 70 acres of this area will not be developed due to flood risk, but are instead being leased to crushing units.
The A and C categories are almost full with fabrication units, service centers, agri based forest-based products, brickettes, toughened glass, cable, etc.
19 units are under construction and 9 units are already active and 15 have been recently allotted. An issue is 15 plots which are non-operational, and here, it is suspected that people applied only to book the land.
The plan is to connect the railway station to the dry port which will be close to Dham Dhum.
In addition to the above, the 13th Five-Year Plan envisages the double laning of the Samtse-Haa highway which will make for an alternate highway to the current Thimphu-Phuentsholing highway.
Samtse is also being considered actively for a domestic airport, as it would be economically feasible too.