Efforts on to reopen largest cloth mill
Hetauda, May 5:
Efforts are on to re-open the country’s biggest cotton cloth factory here after a gap of seven years, which was built in cooperation with the People’s Republic of China.
Following the closure of the factory, the government cleared the dues of the employees and workers and had appointed Diwakar Prasad Rimal for completing the liquidation process of the factory.
The government spent a sum of Rs 150 million for clearing up the dues of the factory, which had 1,200 employees at the time of its closure.
Various people including industrialists and former employees of the factory are thinking of ways to reopen the factory which has the capacity of producing 10 million metres of cotton cloth annually. For this, a committee has been constituted under the supervision of member of Makawanpur chamber of commerce and industry, Arun Raj Sumargi.
A primary study showed that the factory, which was set up in 1975 and began commercial operations in 1978, needs a capital of Rs 10 million for restarting its productions again, said coordinator Sumargi to The Himalayan Times.
During the time of its establishment, the factory had Rs 140 million as fixed capital and Rs 5.5 million as current capital. The Makawanpur Chamber of Commerce and Industry, which has been demanding that the Makawanpur district as a whole should be declared as an industrial district, emphasised re-opening of the factory.
The factory had the largest number of women employees when it was in operation. The closure of the factory has slowed down financial activities in Hetauda.
“A study is also underway to study the possibility of operating the factory as a cooperative”, said Sumargi. It may be brought into operation by demanding its employees to deposit Rs 100,000 each, which will raise the required total of Rs 10 million, he added.
Meanwhile, a delegation of Makawanpur chamber of commerce and industry is scheduled to visit the Russian Federation next week.
“We will urge Russian investors to invest in the factory”, Sumargi said. According to him, the 26 member delegation of Makawanpur Chamber of Commerce and Industry visiting the Russian Federation will be led by FNCCI’s first vice-president Kus Kumar Joshi.