How a crushing plant operator managed to satisfy local representatives, political parties and government offices to continue their illegal business? An investigation of Gorakhkali Crusher Industry based in Chhewetar of Gorkha district.
-Kiran Lohani : Centre for Investigative Journalism-Nepal
When he was transferred to Gorkha district three months ago, Narayan Prasad Bhattarai, the chief district officer, had said, “I have heard that several crusher industries have been operating in the district violating rules. Watch out for a time when all of them will stop their operation.” Bhattarai, who was appointed the CDO of the district on May 3, 2017, tried to regulate the crusher industry, but failed to shut them down. He faced political pressure from higher authorities when he tried to shut down Gorakhkali Crusher Industry, which had been operating in Chhewetar of Gorkha Municipality-10. “Politicians called me up and urged me not to shut it down,” he said.
Background
Earthquake Emergency Aid Project to assist in rebuilding efforts was launched in Gorkha district after the earthquake in 2015. The project, which had received aid from Asian Development Bank, upgraded and blacktopped three roads of Gorkha district. A contract was signed for a 30-kilometre road from Luitel Bhanjyang and went along Aap Pipal and Harmi to Bhachchek. Lama Amar JV received the contract to upgrade 17-kilometre section of the road. The company hired Surendra Kunwar, a businessman from Gorkha Municipality-9, to supply raw materials for the contractor.
Four years ago, the government had stopped issuing license for new crusher and put on hold the renewal of crusher industries. But Kunwar disregarded the rules and set up a crushing plant in Gorkha Municipality-10. The contractor, Lama Amar JV, had agreed to set up the crusher plant within 500 meters of the project site. But Kunwar, the supplier, set up his crusher plant farther from the project site.
Areas of crusher industries. Photos : Kiran Lohani
Kunwar had Deurali Crusher Industry owned by Hariman Singh Basnet of Gorkha Municipality-13 (formerly Deurali VDC-8) transferred in his name. But while filling out the form for the transfer, he provided false information (that the crushing plant was in Gorkha Municipality-10) to the Cottage and Small Scale Industry. But the authorities were not aware of this forgery. Then, he managed to get license to operate a crushing plant in Chhewetar of Gorkha Municipality-10.
Having received the license from the Cottage and Small Scale Industry, Kunwar obtained Permanent Account Number from Inland Revenue Office. After learning about Kunwar’s forgery, the Cottage and Small Scale Industry revoked his license. But it didn’t stop him from operating his plant in Chhewetar that he set up in the village.
In order to supply raw materials to Lama Amar JV, Kunwar’s company started to extract sand, gravel and boulder from an area called 10 Kiloghat along the Daraudi River. After hearing about this, the District Administration Office ordered Lama Amar JC not to operate the crushing plant at the village. The District Monitoring Committee also wrote urging the company not to operate the plant.
Tara Secondary School, which is near the crushing plant, lodged a complaint at District Administration Office complaining that the plant was hurting the students’ classes. But the company didn’t address the matter. On July 19, 2017, it sent a warning letter to the District Administration Office. “We are facing challenges in completing the project after the administration obstructed operation of the crusher,” the letter said, “If the project is not completed on time, the stakeholders will have to bear economic, social and moral cost.”
After that, the District Technical Office tried to stop the crushing plant. Hom Nath Paudel, the head of the office, wrote a letter seeking clarification from the company. The letter dated September 13, 2017 and addressed to Lama Amar JV, read: “We have received report that the company extracted sand and stones from the Daraudi River and unloaded it at a site in Chhewetar of Gorkha Municipality-10, where it processes the materials. The site is not within the 500 meters of the project area. So you have to present yourself with clarification.” But the company is yet to present its clarification.
People’s Representatives protect illegal businesses
Rajan Raj Pant, the Mayor of Gorkha Municipality, is helping those who are trying to set a crushing plant outside the areas appointed by the local officials. At a time when District Administration Office deemed the area inappropriate for setting up a crushing plant, Mayor Pant recommended to the Electricity Authority on September 8, 2017 for electricity connections to the plant.
The ward chairperson should issue a recommendation for the new electricity connection, according to the electricity distribution regulations. However, for the crushing industry, instead of Devi Bahadur Basnet, the ward chairman, the Mayor himself recommended for the connection. “Initially, I was asked to write a recommendation to expand the electricity in the village. So I had agreed,” said Basnet, “After knowing the purpose, I withdrew my recommendation,” he said.
Crushed rocks ready to be supplied to the market. Kunwar sells the gravels from this depot.
However, Mayor Pant said he had issued the recommendation for a temporary electricity connection to the road project. “I haven’t violated any rules. My recommendation was based on the recommendations from the National Reconstruction Authority (NRA) and the District Coordination Committee,” he said.
The document we received shows the mayor’s statement was false. In fact, on September 18, 2017, the District Coordination Committee had recommended to the NRA to allow the crusher plant for road construction. The NRA has approved the recommendation only on September 22. But Mayor Pant had sent a recommendation letter to Gorkha Distribution Center to connect electricity to the plant two weeks earlier.
The applicant should make the industry’s purpose (whether for business or development) clear while applying for electricity connection. For a short-term project such as road, the applicant should submit documents including the recommendation of the ward, the license to run the industry to the Electricity Authority, which allows it to operate only for the construction period. However, the Gorkha Electricity Authority seems to have connected the power without completing this process. Madhav Neupane, chief of the Gorkha distribution center, claimed that the electricity had been connected after meeting the criteria. “The contractor company named Lama Amar JV has submitted all the documents required for the connection,” Neupane said, “We have connected electricity after local level recommendations.”
In cahoots with gov’t officials
The businessman Kunwar continued to defy the rules despite warning from the District Administration Office and District Technical Office to not operate the crushing plant outside 500 meters periphery from project area. For this, Kunwar has received support from District Coordination Committee and the National Reconstruction Authority. “This has been possible under pressure from higher ups. The officials who signed the recommendation letter don’t know about it,” said a technical official of the NRA. Bhishma Kumar Bhusal, the NRA spokesman, said the recommendation had been issued in order to ease the construction of housing, settlement development and other infrastructure.
A letter from District Project Implementation Unit to Lama Amar JV ordering it to set up crusher within 500 meters of the road project.
While the District Administration Office had stopped issuing license to crushing plants, the NRA’s recommendation added further confusion. This encouraged Nepali Congress District Chair Hari Bahadur Ghale, businessman including Surendra Kumar to visit the NRA with applications to set up a crushing plant. A few days later, the crusher plant came into operation. “I went to the NRA with a letter from District Coordination Committee. I felt it will be helpful for development of the district,” said Ghale.
Now the crusher has also violated the conditions of the NRA. The NRA had allowed the plant only for the road project. However, the crusher industry is still supplying raw materials in the market. In the last fiscal year, the District Development Committee had allowed Lama Amar JV to extract 23 thousand cubic sand and boulder from 10 Kiloghat of Daraudi River. The road project should have completed in mid-June but only 48 percent work has been done so far. Lama Amar JV had been permitted to extract the raw materials with less revenue than other contractors, but he is supplying it to the market. Kunwar, who operates the plant for Lama Amar JV, said some materials have been diverted to the market. He said, “Someone wants to build a temple, someone else wants raw material for other construction projects. A couple of trips might have been made.”
The letter from District Project Implementation Unit to Lama Amar JV directing the company to not operate crusher in Gorkha Municipality-10.
A report prepared by the Cottage and Small Scale Industry upon the direction from the District Administration Office. The report clearly mentions that only the name of the company has been changed, not the place.
The District Monitoring Committee’s decision on the crusher. It deemed the crusher plant at Gorkha Municipality-10 illegal.
