Karma Tshetem’s once-thriving hardware company in Gelephu has been in freefall for almost a year. Her shelves used to be filled with construction materials, but after being forced to cut her retail space in half and fire three employees, she now sells alcohol. Among the numerous construction-related companies in Gelephu that have completely collapsed is Karma Tshetem’s hardware store, “Druk Samdrup Tshongkhang.” Hardware stores are closing or switching to survival strategies, selling anything that still has demand, such as repair tools, light fixtures, and home improvement supplies, instead of building materials. Durga Raji Rai’s daily sales have plummeted from Nu 20,000 to Nu 5,000. He is barely making ends meet with a shop rent of Nu 30,000 and an extra Nu 20,000 for storage space.
There is little immediate respite for local businesses even as Gelephu gets ready for the impending GMC project. The hardware store owners have asked for financial assistance from the banks in the form of an overdraft facility secured by their inventory or through the Economic Stimulus Program. In the near future, this will enable them to fulfill larger supply orders by reviving their already weakened financial capacity. The shopkeepers voiced worries that their inability to pay suppliers on time has harmed their business relationships and interfered with the regular supply of goods. The petition emphasized how many businesses are progressively terminating dealership contracts and forfeiting security deposits because they are unable to meet sales targets as stipulated by legal agreements.
