PM Dahal discusses possibility for reoperating Hetauda Textile Industry with Nepal Army

Kathmandu: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has conducted an intensified discussion with various parties for the reoperation of the textile industry in Hetauda.

PM Dahal discussed with the Nepal Army, regarding the reoperation of the textile industry, in Singhadurbar on Wednesday. PM Dahal was present in the Nepal Army’s briefing about the possibility of the reopening of the textile industry.

According to government policy and program for the fiscal year of 2080-81, the Nepal Army studied the feasibility of re-operating the closed textile industry. The textile industry which was established in 2032 B.S. (1976 A.D.) with financial support from the Chinese Government, halted its production in 2056 B.S. (2000 A.D.). The then-royal government shut down the industry in 2059 B.S. (2003 A.D.).

Likewise, the Nepal Army briefly presented the report to PM Dahal on Wednesday. The report concluded that the inability to manage the market, failure of upgradation to modern technology, load shedding, and financial burden due to lack of managerial capacity and skilled manpower forced to shut down the industry.

Similarly, the revival of the industry is needed to contribute to the national industrial development and to contribute to the gross domestic product, to send a positive message to the world market, to boost national sufficiency, in import replacement, and the creation of employment opportunities. The study task force has also proposed the outline for the re-operation of the industry.

The proposed plan along with a three-year work plan has the target of manufacturing approximately 2.6 million meters of cloth. A policy decision regarding this would be made in the current fiscal year and the industry would be handed over to the Nepali Army, which will prepare the DPR, and select and purchase new machinery goods.

Likewise, it is stated in the proposed outline that test production would be started in the coming fiscal year by completing the construction of the infrastructure and the purchase of machines and equipment. It is stated that the machines would be added, the industry’s capacity expanded and regular production started by conducting the feasibility study for the operation of Butwal Spinning Mills and managing the raw materials.

The preliminary cost estimate for re-operating the industry is Rs 1.93 billion and the annual operation cost is Rs. 780 million. The task force has concluded that the industry will be in a position to make a profit, replacing the investment cost, after nine years of its re-operation.

PM Dahal praised the study of the Nepal Army. He said,’ The research of Nepal Army is impressive. I will discuss the matter at the political level. Another small team can be formed from the government level for the study. After that, we will take a concrete decision from the cabinet meeting. ‘

He said, ‘The previous conversion of government industries into private didnt turn out to be successful. The industries were privatized at unjustifiable prices. This shrank employment opportunities. And compelled to create a horrible environment for youths to emigrate. If we do not take the initiative to create an industrial environment now, we will not be able to address the country’s problems.’

Deputy Prime Minister and Minister for Defiance, Purna Bahadur Khadka, Deputy Prime Minister and Minister for Home Affairs, Narayan Kaji Shrestha, Finance Minister Dr. Prkash Sharan Mahat, Minister for Industry, Commerce and Supplies Ramesh Rijal, National Planning Commission’s Vice Chair Dr. Min Bahadur Shrestha, Chief Secretary Dr Baikuntha Aryal, NA Chief Prabhuram Sharma, government secretaries, and NA senior officials were presented in the meeting.