Plans afoot to revive agro machinery factory
Prior to its closure, the factory used to produce 2,000 units of agro machines a year
Kathmandu, June 2
The Ministry of Agriculture and Livestock Develoment (MoALD) is preparing to resume the agriculture machinery factory located in Birgunj.
Aiming to replace the import of agriculture machinery, the ministry recently conducted the feasibility study to resume the operations of the factory, which has remained shut since 2002.
A five-member task force was formed by the ministry last year to find out the current situation of the factory along with future possibilities. The task force submitted a report to Agriculture Minister Chakra Pani Khanal on Thursday recommending revival of the factory.
According to the report, the factory’s infrastructure as well as machinery are still in good condition and it can be operated again with minimal maintenance.
“Hence, it makes sense to resume the operation of this factory so that the country does not have to depend on imported agriculture machinery,” the report reads.
As per the report, the factory would be able to cater to the needs of the local farmers in the first phase of revival. After that its production capacity could be expanded, as stated by the report.
The task force has further suggested the government to operate the factory in a scientific and professional manner rather than being guided by any political interest. The report has suggested that after its revival, the factory be operated under Public-Private Partnership (PPP) model.
“If the government is able to take immediate action, the factory can resume operations within three months,” the report says.
Prior to this, the factory was affected due to high political interference. “Unnecessary politics and miscommunication among workers and management team are the major reasons for the factory remaining closed. Similarly, lack of market, weak management policy, and failure to compete in the market contributed to shutting down of the factory,” as stated in the report.
The factory used to produce equipment for tillage, seeding and planting, irrigation, and harvesting and threshing. The factory, which used to produce around 2,000 units of different agro machinery per year, used to employ around 270 people.
According to the Department of Customs, agriculture machinery worth Rs 11.60 billion was imported in the first nine months of the current fiscal year.