In a stunning political maneuver just days before Nepal’s parliamentary elections, Kathmandu’s former mayor Balen Shah has excised a controversial China-backed industrial park from his election manifesto. Running against former Prime Minister KP Sharma Oli in the Jhapa-5 constituency, Shah’s decision spotlights escalating tensions over Beijing’s Belt and Road Initiative (BRI) projects near India’s sensitive borders.
Nepal gears up for polls on March 5 under an interim government formed after massive Gen-Z anti-corruption protests forced Oli’s resignation last September. The move comes as the Damak Industrial Park—renamed Nepal-China Friendship Industrial Park—grabs headlines for its location perilously close to the Siliguri Corridor, India’s strategic ‘Chicken Neck’ linking the northeast to the mainland.
New Delhi has long viewed such ventures with alarm, questioning Kathmandu’s allowance of massive Chinese projects so near the border. Officials express bafflement at the risks, especially amid BRI’s track record of delays and debt traps, reminiscent of Sri Lanka’s woes.
The 35-year-old engineer-turned-rapper and politician, representing the Rashtriya Swatantra Party (RSP), enjoys massive youth support and is eyed as a future PM candidate. Shah was once Gen-Z’s pick for interim PM but stepped back. His aide confirmed the omission, citing awareness of the project’s controversies.
Contrast this with Oli, UML party chief with deep Beijing ties, who prominently featured the park’s completion in his 41-point commitment last week. The project, launched by Oli in February 2021 in Jhapa’s Kamal Rural Municipality, embodies BRI’s multi-continent infrastructure push under Xi Jinping.
Past reports highlight rifts between Nepali Congress and UML over BRI loans, with delays plaguing implementations. Financial concerns loom large, as China’s funding shifted from grants to aid models amid tax exemption demands that Nepal’s finance ministry resisted. Despite India’s ‘red line’ warnings to both parties, Oli’s investment board fast-tracked it.
Shah’s bold edit signals a youth-driven pushback against foreign entanglements, potentially reshaping Nepal’s geopolitical alignments as voters head to the polls. With Oli’s pro-China stance under scrutiny, this could tip the scales in a fiercely contested race.