Mixed Reactions to Prime Minister Walendra Shah Balen’s Effort to Restart Hetauda Textile Factory

Following Prime Minister Walendra Shah Balen’s announcement to restart the government-run Hetauda textile factory, reactions have been mixed. While some have expressed enthusiasm about the factory’s reopening, others believe the government is trying to limit the private sector’s role in the industry. Recently, on Facebook, Prime Minister Shah shared that after the Nepal Army repaired key machinery, trial production has already begun. He stated, “After testing, the Government of Nepal will operate the factory itself.”
The government’s initiative to move forward with trial production has raised hopes among local residents that the factory will be revived. Established in 1974 (Bikram Sambat 2031), the factory was shut down around 1999/2000 (BS 2056/57) due to political and administrative irregularities and uncertainty. “It is essential to be cautious now to prevent such circumstances from recurring,” said Prakash Paudel, a former employee of the factory and a local resident.
As the government steps in to operate the factory directly, some textile industry stakeholders and economists have pointed to a lack of policy clarity. Shailendralal Pradhan, president of the Textile Industry Association, highlighted the need for policy reform, noting that the government’s decision to run the factory limits the private sector’s role and is causing the country’s textile industry to weaken gradually. “In the past, there were more than two dozen textile factories in Biratnagar alone; now, only one remains. Why has this happened?” Pradhan questioned. “Instead of addressing this through policy, the government is moving forward with operating a small-scale factory itself. Our sector has not received adequate government attention.”