In an effort to build professionalism

The NRDCL is a 100% government owned corporation under the Druk Holding & Investments (DHI) and governed by the Companies Act of the Kingdom of Bhutan 2000 and Articles of Incorporation.

The company is bestowed with a huge mandate to effectively manage timber, sand, stone and other natural resources of the country and to make these resources available, accessible and affordable to all citizens of the country.

The day to day operations of the company is managed by the Chief Executive Officer with the guidance of the Board of Directors appointed by the DHI. The company works as per approved management plans and environmental terms and conditions of the concerned stakeholders while carrying out its activities.

In order to meet the demand for burgeoning construction needs of the country, the company has to manage several work sites across the country simultaneously with the help of its branch offices spread across the length and breadth of the country. When manpower is not adequate, the company is forced to outsource many of its activities like quarrying, collection and extraction works to the contractors. When works are outsourced, the main intention of the contractors is to make optimum profit at the cost of inferior quality of work by not meeting many of the set terms and conditions. This was the concern raised during the Joint Coordination Meeting involving the Department of Forests and Park Services, Department of Geology and Mines and the Natural Resources Development Corporation Limited specifically on the issue relating to export of stones chips by crushing plants through stone obtained from surface collection permits. When works are executed with the help of contractor’s, NRDCL is seen as an entity vested to make profit with very little concern over the environment.  It was also the concern of the two departments that the permission for collection and excavation from riverbeds could be granted only if the company carries out the work departmentally or through the use of hired machinery with continuous work supervision by NRDCL’s competent field staffs. It is mandatory for NRDCL to obtain forestry, public, dzongkhag and environmental clearances for collection of sand and stones around the country under DoFPS permit.


Streamlining Sand and Stone extraction from Moa Khola Riverbed

The NRDCL management has reviewed and revised the sand and stone extraction technique at the Maokhola riverbed based on;

(1) Complaint from three gewogs of Chuzagang, Gelephu and Serzong because of rampant collection of boulders and sand from the banks of Mao Khola,

(2) Directives from the Department of Forests & Park Services and Department of Geology and Mines to carry out organized extraction of stone from riverbed, and

(3) Need for river protection works to be implemented based on Clause 7, 9 and 17 of the Environmental clearance issued on 30th December 2013,

(4) To mitigate the likelihood of river changing its course rampantly when the excessive sand and silt deposit are built.

The organized collection activity cannot be realized if the earlier system of allowing numerous contractors to extract and load stone from all over the Maochhu riverbed. Therefore, the NRDCL Management has decided to implement organized system of stone/sand extraction using hired machinery and expert supervision of experienced officials coupled with implementation of river protection works. Unless the river protection works are funded by the government, the NRDCL need to derive the budget from the sale of stone and sand.

Till December 2013, the NRDCL was collecting only the overhead cost of Nu 460 per truckload and royalty of Nu 50 per truckload thus totaling to Nu 510 per truckload. The extraction and loading was the responsibility of individual contractors/consumers. However, with effect from January 2014, the company also has to deploy heavy machinery for extraction in a systematic and channelized manner and also incur expenses in river bank protection/mitigation works in line with the environmental terms and conditions. Thus the charge for truck load of sand with loading at site is Nu 2118.00, equivalent to Nu 7.51 per cft.