The government has prepared for re-operation of four industries which have been closed for a long time. Prime Minister Pushpa Kamal Dahal has discussed with the Ministry of Industry, Commerce and Supplies about the re-operation of the industries. The Prime Minister discussed the re-operation of industries including Biratnagar Jute Mills, Hetauda Textile Industry, Gorakhkali Rubber Industry and Butwal Yarn Factory.
The Prime Minister has also given instructions to submit a solid model for the re-operation of the industries. According to the government’s preparations, the Prime Minister has also said that a concrete decision will be taken on this within 10 days. Addressing the Press Center Nepal’s 20th Foundation Day and National Council meeting in Birgunj on Monday, the Prime Minister informed about the government’s preparations and decisions.
“Just yesterday, we decided to start two or four new projects. In particular, there has been talk of re-operation of industries like Biratnagar Jute Mills, Hetauda Textile Industry, Gorakhkali Rubber Industry, Butwal Yarn Factory,” said the Prime Minister. “It has been decided to allow some of them to be operated directly by the Nepali Army in a public private partnership model. People will know that closed industries will be operated within ten days.”
He also said that the government will move towards creating jobs by operating the old industries.
Biratnagar Jute Mills has been closed since 2070 BS. The long-closed industry remains like a ruin. It at present has assets worth Rs 15 billion. Before 2052 BS, the industry was making an annual profit of around Rs 280 million. Now the industry is in debt of more than Rs 5 billion.
Butwal Yarn Factory Limited currently has no commercial operations. Yarn production at Butwal has been closed since 2066 BS. The company has accumulated a loss of Rs 1.96 billion. The government holds a share of Rs 222.9 million in the industry, which has an authorized capital of Rs 600 million, an issued capital of Rs 450 million, and a paid-up capital of Rs 597.5 million.
The Hetauda Textile Industry is also closed. The textile industry, established at a cost of around Rs 200 million, has been closed since 2057 BS. The Gorakhkali rubber industry, which started commercial production in 2049 BS, has been completely closed since 2072 BS due to poor management.
The Ministry of Industry, Commerce and Supplies claims that Indian investors are interested in operating jute mills and rubber industries.
