Hetauda Textile's building fit for running new plants

Kathmandu, July 22: The government-formed committee to analyse the status of the machinery, buildings and other infrastructure as well as the operation and financial modality of the already liquidated Hetauda Textile Industry has come to a preliminary conclusion that the buildings of the factory are fit enough to run textile plants.

The government is planning to reoperationalise the government-run and the largest textile factory in collaboration with the Nepal Army.

“Army is interested in bringing the dead industry back into life. Therefore, we are deliberating on the possible financing modalities,” said Shatrughna Prasad Pudasainee, Joint Secretary at the Ministry of Industry, Commerce and Supplies (MoICS) and coordinator of the team formed to study the status of the industry.

The committee will also recommend whether it would be practical for the government to run the textile mill in collaboration with the Nepal Army.

The team will submit its report to the Minister for Industry, Commerce and Supplies Matrika Prasad Yadav next week.

According to Pudasainee, the team has hold discussions with the former employees of the industry, industrial zone officials and other stakeholders.

“As per the discussions with the concerned stakeholders, the machinery at the industry is unfit to run the factory. We need to install modern machines with higher productivity,” he said.

Secretary of the MoICS Yam Kumari Khatiwada said that the government was positive with the army involvement in the industry’s revival process.

The committee also includes three senior army officials, a joint secretary from the Ministry of Finance, a textile engineer from the Department of Standard and Meteorology and a mechanical engineer as an independent expert.

Former Minister for Industry Nabindra Raj Joshi had started the revival of the textile mill and formed a committee to study the status of the factory. He had also decided to run it in collaboration with the Nepal Army, Nepal Police and Armed Police Force at the cost of Rs. 100 million.

The committee led by economist Dr. Puskhar Bajracharya had said that about 40 per cent equipment of the factory were in sound condition.

Established about four decades ago, the industry had the capacity to produce 36,000 metres of cloth per day.

It has been liquidated and merged into the Industrial District Management Limited.

Published in The Rising Nepal daily on 23 July 2018.