Kathmandu, January 5:

The government is set to re-open Agriculture Equipment Factory by mid-February and Hetauda Textile Mill by mid-April. Both were closed due to continuous losses.

The government had announced in its budget speech that four industries would be reopened as part of the rehabilitation plan during the current fiscal. It has allocated Rs 300 million for the purpose. The task force formed to give suggestions for reopening of the two industries has already submitted its report. The panel has said Rs 106 million would be needed for the resumption of the mill. Finance Ministry joint secretary Tejraj Shakya said the mill could be run under PPP model. The mill, set up 29 years ago, started suffering losses since 1990 and the government closed it in 2000. The mill has a capacity to produce 101 million metres of cotton cloth a year. It had been providing employment to 300 people.

The ministry said a task force has been formed to suggest recommendations for effective operation of Gorakhkali Tyre Factory and Biratnagar Jute Mill, which are still operational but sick. Shakya said another yet task force has been formed to carry out technical evaluation of the closed Birgunj Sugar Mill and recommend ways for reopening it.