Biratnagar, November 6:

Biratnagar Jute mill has demanded that the government provide Rs 13 crore. The mill placed the demand, citing the shortage of capital and losses caused by load-shedding.

The oldest jute mill of the country has remained closed for a week.

The management said the mill will remain in crisis unless the mill is run with a long-term vision.

The state is planning to operate the mill on its own. The Ministry of Industries has been holding discussions to chip in funds for the mill, the mill management said. “A decision on providing funds to the mill will be taken tomorrow,” chairman and general manager of the mill, Phul Kumar Lalwani, said.

The mill cannot be run sustainably in the absence of a long-term plan, he said. The factory has remained closed as the government has failed to provide funds as per an agreement.

The mill has been facing the capital crunch due to frequent strikes and load-shedding, Lalwani said.

The government had taken over the management of the mill from Golchha Organisation on July 24, 2006.

“As per the agreement, the government was supposed to provide Rs 12.66 crore to the mill management, but has just released Rs 5 crore,” chairman Lalwani said.