Biratnagar, May 6:

Biratnagar Jute Mill (BJM) has urged the government to provide Rs 80 million expeditiously as it lacks capital. Earlier, the government had expressed its commitment to provide Rs 120 million. Out of which, it has provided Rs 40 million till date.

“Rs 80 million is yet to be provided by government as per its commitment. Therefore, we have demanded the said amount from the government,” BJM general manager, Raj Kumar Gautam said, adding that since the BJM lacks capital, it could not purchase jute at a cheap rate.

“Conditions do not exist for taking loans from financial organisations. The mill has already been blacklisted since it could not pay Rs 400 million due to Nepal Bank”, Gautam said.

The mill resumed operations from October 3, 2005. The government has been releasing fund to the mill in a phased manner after a team of experts submitted a report to the government to provide Rs 120 million for the operation of the mill.

The government released Rs 30 million in October 2006 and Rs 10 million in March 2007.

Rs 30 million was consumed to provide salary and allowances to its employees and the mill is being operated with Rs 10 million, the mill source said. “If the remaining amount is released, the mill could generate profit”, Gautam said.