Prime Minister’s Office Leads Reopening of Hetauda Textile Industry, Launches Clean-Up Campaign

June 19, Hetauda — The Prime Minister and Council of Ministers’ Office has taken a leading role in reopening the Hetauda Textile Industry, which has been closed for nearly two decades. According to Hetauda Industrial Area Management Limited, the Prime Minister’s Office is directly involved in the process of resuming operations.

Industry, Commerce, and Supplies Minister Gaurikumar Yadav recently conducted an inspection of the factory. Following the visit by the minister and her team, Himalaya Bhandari, Information Officer at the Prime Minister’s Office, stated that preparations to restart the factory are rapidly progressing.

Two days prior, the Prime Minister’s Office held a telephone discussion with Meena Kumari Lama, Mayor of Hetauda Sub-Metropolitan City, regarding the operation of the textile factory. Mayor Lama informed that dialogue concerning the municipality’s role in this effort took place and the municipality is ready to allocate the entire budget for the upcoming fiscal year toward the factory’s reopening.

Mayor Lama expressed confidence, saying, “The Prime Minister’s Office initiative has instilled certainty about restarting the textile industry, which will significantly contribute to national economic development and create employment opportunities, revitalizing Hetauda and surrounding areas.”

Prompted by the Prime Minister’s Office’s concern, Mayor Lama and Makwanpur Chief District Officer Basant Adhikari have conducted inspections of the factory. Minister Yadav carried out her inspection on May 24 (Jestha 10, Nepali calendar).

Responding to questions raised in the House of Representatives regarding the fiscal budget for 2083/084 (Nepali fiscal year), Minister Yadav announced the government’s plan to reopen the Hetauda Textile Industry within this year.

She said, “Among existing industries in the area, Hetauda Textile Industry is the first to be prioritized for reopening. Alongside the textile factory, thread production in Butwal and cotton farming in Nepalgunj, Banke will also commence operations this year.”

Established in 1975 (2032 BS) and operational from 1978 (2035 BS), the Hetauda Textile Industry, along with the thread factory in Butwal and the cotton production facility in Nepalgunj, had ceased operations after the textile factory was shut down, according to Himalayan Bhandari, Information Officer of Hetauda Industrial Area Management Limited.

Bhandari affirmed that preparations to restart the textile factory are nearly complete. “The machinery is mostly intact with only minor rust in some parts. After routine maintenance, operations can resume. Buildings are also in good condition and will require only minor repairs to restore full production capacity,” he explained.

Comprehensive Cleanup of Factory Premises Underway for First Time

Since 2018 (2075 BS), the Armed Police Force’s 14th Battalion has been stationed at the textile industry premises, whereas previously security was maintained by just two guards.

Security officials report that some equipment was stolen and the factory premises had become a gathering spot for drug users. However, with the presence of the Armed Police Force, security has been fully restored.

Nearly two decades after its shutdown, a thorough clean-up of the factory site has begun for the first time. The Armed Police Force, Nepal Army, and Nepal Police are jointly conducting the sanitation drive, according to Deputy Superintendent Niban Shrestha, commander of the Armed Police Force’s 14th Battalion.

According to Shrestha, this is the first time even the concrete structures are being cleaned. “Trees and plants from the upper parts of the buildings have been removed. Clearing of dense shrubs and other cleaning activities are ongoing,” he added.

Repeated Attempts to Reopen the Factory

After the factory’s closure in 2001 (2057 BS), multiple attempts to restart production were unsuccessful. Efforts to privatize the factory in 2002 (2058 BS) failed due to lack of bidders.

During the tenure of Prime Minister Pushpa Kamal Dahal Pradhan and Finance Minister Dr. Baburam Bhattarai in 2008 (2065 BS), over NPR 80 million was allocated for reopening the factory, yet no progress was made.

After all activities were transferred to the Industrial Area Management Limited (IDM) in Balaju in 2012 (2069 BS), repeated announcements were made regarding the factory’s revival. Former industry ministers also expressed faith in its reopening.

Former industry ministers Ashtalakshmi Shakya, Mahendra Prasad Yadav, Anil Kumar Jha, Mahesh Basnet, and Navindra Raj Joshi have all pledged to revive the Hetauda Textile Industry. During Minister Dilendra Prasad Badu’s tenure, ministry teams visited the site for study purposes.

Under Prime Minister Dahal Pradhan’s leadership, the Nepal Army has also conducted feasibility studies on reopening the factory and proposed investments of around NPR 200 crore to the government.

Removal from Government Records

The factory has recently been removed from official government records. On January 25, 2023 (12 Magh 2079 BS), the Council of Ministers transferred the factory’s buildings and land to Industrial Area Management Limited, thus maintaining government shares under this entity.

The 256 ropani land was valued at NPR 201.9 million and buildings and infrastructure at NPR 81.2 million, assigning the government’s shares accordingly. The plant and machinery were valued at NPR 81.4 million, with the government taking NPR 70 million and the rest subject to 5% annual investment by the management company.

Following these arrangements, the factory’s details have been removed from the Company Registrar Office and the Industry Department.

Currently, the factory owns no land, buildings, or machinery. The Industrial Area Management Limited leases out the land except for the factory premises to 23 other industrial tenants.

On March 6, 2015 (20 Falgun 2071 BS), then Industry Minister Mahesh Basnet inaugurated the expansion of Hetauda Industrial Area (Industrial Area-2). The expansion covered 20 Bighas 12 Kathas 8 Dhur (around 13.5 hectares) of land managed by IDM.

Of the 243 ropani land area of the factory, 55 ropani is leased out by the Industrial Area Management Office for other industries. Notable leaseholders include South Asian Brewery Pvt. Ltd. (105 ropani) and Avinash Eggs Pvt. Ltd. (9.75 ropani).

Currently, about a dozen small and medium-sized industries may operate on 188 ropani of the land where the textile factory is situated, but the dilapidated buildings and machinery remain locked inside rooms. Neither the textile factory operates, nor is the land being utilized for new industries.