Security agencies to run Hetauda Textile Mills

Kathmandu, Oct. 27:  The government on Thursday took a decision to run the Hetauda Textile Mills in collaboration with the Nepal Army, Nepal Police and Armed Police Force.

 Similarly, it plans to call upon the private sector to run the Butwal Spinning Mills and Birgunj Sugar Factory.

Minister for Industry Nabindra Raj Joshi told a press meet that the three security agencies would run the textile mill in the first phase and produce uniforms for their personnel and school students.

“About 40 per cent of the equipment of the factory is still in sound condition. Therefore, the security agencies will invest Rs. 100 million each to run the factory by installing the other machines,” he said.

Minister Joshi said that the government was also planning to include the private sector in the mill. According to him, management team comprising representatives from the government, the Nepalese Army, Nepal Police and APF as well as independent management experts would run the industry.

The Ministry of Industry (MoI) had formed a 9-member task force, led by former National Planning Commission member Dr. Pushkar Bajracharya, to study the status of Hetauda Textile Mills a couple of weeks ago.

The task force had submitted its report and suggested that there was a possibility of running the industry in a profitable way.

 Established about four decades ago, the Hetauda Textile Mills has a capacity to produce approximately 36,000 metres of cloth per day.

The company has already been liquidated and merged into the Industrial District Management Limited.

Minister Joshi said that the Butwal Spinning Mills and Birgunj Sugar Factory would be leased out to the private sector.

To attract investors to run the industries, the government has decided not to charge rental payment to the prospective lessees until the factory comes into operation.

The government has given priority to Agriculture Inputs Company Limited, Nepal Metal Company, Nepal Oriend Magnesite Company, Birgunj Sugar Factory, Nepal Drugs Limited, Butwal Spinning Mills and Gorakhkali Rubber Udyog (producing tyres) for re-operation.

Minister Joshi said that other industries would also be brought into operation in collaboration with the private sector. Gorakhkali Rubber Udhyog is to be run under the Public-Private-Partnership model.

For the past few weeks, the ministry had been trying to finalise the modality to run the state-owned industries that had long been shut down.

 “We will call for proposals from the investors after the finalisation of the modality,” said Joshi.

Meanwhile, the ministry has formed a task force to study the present condition of Udayapur and Hetauda Cement factories, both government-run entities.

Dr. Pushkar Bajracharya is leading the team to study Hetauda Cement Factory while Bijaya Ghimire is leading another team to study Udayapur Cement.

 The teams will study the human resources and condition of the machines before submitting their reports in two weeks.

“After receiving reports from the task force, the government will decide what to do with them,” said Joshi.