Kathmandu, May 12:

The government has finally decided to privatise Nepal Resin and Turpentine Ltd (NRTL), a state-owned company for which a formal agreement with the private company Dibya Pashmina Udyog (DPU) has been signed at the ministry of finance (MoF).

The government has sold NRTL at a little over Rs 110 million to DPU which has been listed as the highest bidder for the company. The final decision to privatise NRTL was taken at a cabinet meeting on Wednesday, with DPU’s name emerging as the highest bidder, according to senior officials at the ministry of finance.

The agreement has been signed by Dr Bhoj Raj Ghimire, secretary at the ministry of finance, Dr Swambhu Man Amatya, secretary at the ministry of forest and land conservation ministry and Narendra Raj Giri of DPU.

Bimal Prasad Wagle, joint secretary at the MoF and chief of the privatisation cell, informed The Himalayan Times that the company has been privatised because of its weak financial performance.

As per the earlier decision, the land and buildings occupied by the company can be used by the private company for at least 10 years on an annual lease of Rs 30,12,000, informed Wagle.

This includes use of other movable assets as well. After the handover of the company, Wagle hoped that the company would restart its operation soon.

For selling the ‘movable assets’ of NRTL including the machines, the government has issued a tender for which firms namely Green Herbal Industri Pvt Ltd, Laxmi resin And Turpentine Industries Pvt Ltd, Ganapati resin and Turpentine Industry Pvt ltd, Dibya Pashmina Udyog, Jaya Bageshwori Oil Store, Nawajeewan Cooperative Limited and Birat Herbs resin and Turpine Industry (Pvt) Ltd had submitted their tenders.

NRTL has a capacity to produce 2,800 metric tonnes of resin and 6,25,000 litre of turpentine oil yearly. The NRTL products hold tremendous potentials for export to India and other countries.

MoF had earlier prepared a pre-qualification list and evaluated financial and technical proposals afor operating the company.

Despite seven companies having submitted their proposals to MoF to buy NRTL, only four companies’ financial proposals were evaluated.

These companies are Green Herbal Industry Pvt Ltd, Laxmi resin and Turpentine Industry Pvt Ltd, Dibya Pashmina Udyog and Nawajeewan Cooperative Ltd.