Nepal has set an ambitious plan to use its local natural resources to strengthen the energy and industrial sectors. The government is aiming to harness natural gas from Dailekh and begin iron production from Dhauwadi within the next several years.
A new report from a Chinese exploration company has confirmed a major natural gas reserve in Jaljale, located in Bhairavi Rural Municipality of Dailekh. The report estimates the gas reserve at 112 billion cubic meters. This news has raised fresh hopes that Nepal can reduce its reliance on imported energy.
Minister for Industry, Commerce and Supplies, Damodar Bhandari, shared the update this week. He said that Nepal is now focused on turning these findings into real results. The goal is to begin using the Dailekh gas within a year. The long-term aim is to provide this gas for household and industrial use across the country.
The natural gas in Dailekh has been a topic of interest for years, but recent steps by the government suggest that action is finally being taken. A detailed survey has already been completed, and a team of officials is working on how to begin safe and cost-effective extraction.
According to experts, 112 billion cubic meters of natural gas is a huge amount for a country like Nepal. If used well, this could meet a large part of Nepal’s energy needs for years to come. It could also help reduce the high cost of imported fuel and support local job creation.
At the same time, the government is also pushing forward plans to extract iron ore from Dhauwadi in East Nawalparasi. The site has long been known to contain high-grade iron ore. However, there have been delays in starting the project due to technical and policy hurdles.
Now, under the direction of Prime Minister KP Sharma Oli, the Ministry of Industry, Commerce and Supplies is taking active steps. The target is to begin iron production from the Dhauwadi mine by 2085 BS (2028 AD). This move is expected to reduce Nepal’s dependence on imported steel and boost domestic industries.
Iron ore from Dhauwadi could support large-scale production of construction materials. This is vital for Nepal, which is investing heavily in roads, buildings, and other infrastructure. The project could also open up new jobs and business opportunities in East Nawalparasi and surrounding areas.
Minister Bhandari stressed that both projects—Dailekh gas and Dhauwadi iron—are important parts of Nepal’s plan to use its own natural resources. He said that careful planning and international cooperation will be needed to meet the set goals. The government is working closely with technical experts to ensure safety and environmental protection during resource extraction.
The Department of Mines and Geology is now preparing to invite both local and international firms to take part in the projects. The aim is to begin work as early as next year. Officials say that with good planning and strong political support, these two projects can become success stories for Nepal.
In addition to energy and raw materials, these projects also hold economic value. Experts say that using local gas and iron could save Nepal millions of dollars each year. It could also help balance trade deficits by cutting down on fuel and metal imports.
People living near the Dailekh and Dhauwadi sites have welcomed the government’s new push. Many see this as a chance for local growth, better roads, new jobs, and improved services. Local officials have promised that community needs will be respected as projects move forward.
The government hopes that these projects will not only strengthen Nepal’s economy but also set a model for future resource development. If successful, Nepal may explore other similar reserves in the country.
By focusing on Dailekh gas and Dhauwadi iron, Nepal is taking its first big step towards energy independence and industrial self-reliance.
