KATHMANDU: Property worth around Rs 7.8 million was reduced to ashes when a fire broke out at a cotton factory in Madhyapur Thimi Municipality-16 of Bhaktapur district on Wednesday night.

A cotton processing machine, readymade cotton and raw materials to produce cotton were destroyed in the fire, said the industry owner Balaram Upreti.

The reason behind the fire was electric short circuit, police said.