Govt plans revival of closed industries for economic growth

Kathmandu: In a bid to revive stagnant industries, the government, led by Prime Minister Pushpa Kamal Dahal, has set the stage for the re-operation of four long-closed establishments. The Prime Minister engaged in discussions with the Ministry of Industry, Commerce, and Supplies to explore options for reviving Biratnagar Jute Mills, Hetauda Textile Industry, Gorakhkali Rubber Industry, and Butwal Yarn Factory.

Prime Minister Dahal directed the ministry to present a robust model for the re-operation of these industries. The government aims to make a concrete decision on the matter within the next 10 days, as disclosed by the Prime Minister during the celebration of Press Center Nepal’s 20th Foundation Day and National Council meeting in Birgunj on Monday.

“We have 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,” announced 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.”

Emphasizing the government’s commitment to job creation, Prime Minister Dahal highlighted the potential for generating employment by reviving these old industries.

Biratnagar Jute Mills, dormant since 2070 BS, stands as a dilapidated structure with assets worth Rs 15 billion. The once-profitable industry, yielding an annual profit of around Rs 280 million before 2052 BS, now grapples with a debt exceeding Rs 5 billion.

Butwal Yarn Factory Limited, inactive since 2066 BS, carries a loss of Rs 1.96 billion. The Hetauda Textile Industry, closed since 2057 BS, and the Gorakhkali Rubber Industry, shut down in 2072 BS due to mismanagement, are also in consideration for revival.

The Ministry of Industry, Commerce, and Supplies reports potential interest from Indian investors in operating the jute mills and rubber industries, indicating potential cross-border collaboration in the revitalization efforts.