KATHMANDU: Property worth Rs 40,000 was gutted in a fire at a paper factory in Kapan, Kathmandu, on Thursday afternoon.

Valuables including Nepali papers, and raw materials among others were destroyed in the fire that broke out at 2:40 pm today.

Police have suspected the cause of the fire to be indisposed cigarette butts. "The lit cigarette butts might be the cause as the factory is at an open field.  However, we are yet to pinpoint the actual cause," said police.

No human casualties have been reported, added police.

Fire-engines, with the help of locals, doused the fire.