The government has appointed three consulting firms to conduct property valuation and due diligence audits (DDA) of four long-inactive public enterprises—Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Metal Company, and Nepal Orind Magnesite.
According to the Ministry of Finance (MoF), S&S Associates has been selected as the lead consultant for the DDA of all four enterprises. Jin and Associates will support the audit of Nepal Metal Company, while S Subedi and Associates will assist with the valuation of Janakpur Cigarette Factory.
The MoF began the consultant selection process in July as part of plans to privatize or manage the assets of state-owned enterprises that have remained shut for years. Earlier, eight firms were shortlisted for Janakpur Cigarette Factory, 12 for Butwal Yarn Factory, and 11 for Nepal Metal Company.
The High-Level Economic Advisory Commission, led by current Finance Minister Rameshore Khanal, previously recommended scrapping several loss-making state-owned enterprises, labeling them a financial burden. The FY 2025/26 budget also supports continuing asset management of seven public entities, including Gorakhkali Rubber Udyog, Udayapur Cement, and Hetauda Cement Factory. The Asian Development Bank will assist in the DDA process for these enterprises.
Nepal currently has 44 public enterprises, of which 15 operate at a loss and three remain inactive. The government’s investment in these PEs exceeds Rs 615 billion, but returns have been extremely poor.
