Author: space4knews

With the establishment of a textile industry in Hetauda, the government has urged entrepreneurs and the private sector to invest in cotton farming to boost domestic cotton production. Industry Minister Gaurikumari Yadav and Agriculture Minister Geeta Chaudhary held discussions on expanding cotton cultivation in Dang, Banke, and Bardiya districts. Jitendra Basnet, Director General of the Industry Department, informed that the evaluation of assets and liabilities for reopening the currently closed Butwal Thread Factory is in its final stages. (29 Shrawan, Kathmandu)

Following the launch of the textile industry in Hetauda, the government has placed strong emphasis on increasing cotton production within Nepal. The Ministry of Industry, Commerce and Supplies has called upon businessmen and the private sector to invest in cotton farming. This initiative aims to end the heavy reliance on imported raw cotton for Nepal’s textile industry by ensuring supply through increased domestic cotton production and raw material availability.

According to the ministry, Industry Minister Gaurikumari Yadav met with Agriculture Minister Geeta Chaudhary to discuss expanding cotton farming across Nepal. During the talks, Minister Chaudhary indicated that districts such as Dang, Banke, and Bardiya offer suitable conditions for cotton cultivation. While there is potential for cotton farming in Nepal, the absence of large-scale commercial farming means industries continue to depend heavily on imported raw materials.

The government expects that by simultaneously enhancing cotton production alongside the textile industry, it can promote import substitution, create employment opportunities, and increase farmers’ incomes. Additionally, Jitendra Basnet, Director General of the Industry Department, noted progress toward restarting the long-closed Butwal Thread Factory, with the asset and liability assessment nearing completion. The government aims to reduce foreign cotton imports, boost domestic production, and generate employment opportunities through the expansion of cotton cultivation.

A study by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has revealed that only 46 percent of the 74 private sector-related initiatives included in the fiscal year 2082/83 budget were fully implemented. According to the report released by the federation, 34 initiatives were fully implemented, 34 partially, and 6 not implemented at all. FNCCI President Birendra Raj Pandey emphasized the necessity of collaboration between the government and the private sector for economic development and urged effective implementation of capital expenditure. Report dated 29th Shrawan, Kathmandu.

The implementation of private sector-related points outlined in the fiscal year 2082/83 budget was found to be weak. This finding was disclosed during a budget watch program jointly organized by the FNCCI and Nepal Economic Journalists Society (NEJS). The federation noted that out of 74 private sector-related points in the budget, only 34 were fully executed, another 34 were partially implemented, while 6 received no implementation whatsoever.

Overall, only 46 percent of the announced budget allocations were fully realized. Among 27 points related to industrial development, only 14 were fully executed. In the sectors of energy, infrastructure, and urban development, 5 out of 14 points were fully implemented. Agricultural and medicinal herb-related initiatives saw 4 out of 7 fully completed. In tourism, 3 of 9 points were fully implemented, while investment and financial sectors recorded 4 out of 8 fully realized initiatives. Within education and employment, only 1 of 3 points was fully implemented, and in information technology and startups, 3 out of 6 points were fully executed, the federation’s study showed.

At the program, Province Chamber of Commerce president Birendra Raj Pandey stressed that collaboration between the government and the private sector is indispensable for Nepal’s economic growth, industrial transformation, and prosperity journey. He affirmed FNCCI’s readiness to cooperate with the government and committed to continuing the budget watch program throughout the current fiscal year. Pandey called on the government for effective implementation of capital expenditures, highlighting the need for timely completion of infrastructure projects to meet this year’s economic growth targets, improving the quality of public spending, creating a conducive environment to encourage private investment, and expediting decision-making processes within ministries.

After reviewing the news summary, the government, Nepal Oil Corporation, and the Gas Industry Association have claimed there is no shortage of LPG gas in the market and that artificial issues have arisen due to unnecessary hoarding. Commerce Secretary Narayan Prasad Sharma Dawadi announced plans for a major overhaul of the gas distribution system, including the implementation of separate pricing and cylinder policies for domestic and commercial use. Chief District Officer of Kathmandu, Ishwar Raj Paudel, has warned merchants engaging in gas hoarding or conditional sales that they will be prosecuted under the Black Market Act.

September 14, Kathmandu – Despite the public lining up on streets with empty cylinders amid claims of a cooking LPG gas shortage, the government, regulatory bodies, and industry stakeholders have collectively asserted that there is no actual scarcity of gas. The Ministry of Industry, Commerce and Supplies, Kathmandu District Administration Office, Nepal Oil Corporation, and Gas Industry Association held a joint press conference on Friday to present data showing that gas supply in the market has actually exceeded normal levels.

The sudden increase in demand and artificial market tension were attributed to the recent shift from distributing half cylinders (7.1 kg) to full capacity cylinders (14.2 kg) starting June 15, and consumer tendencies to hoard gas unnecessarily. According to ministry figures, 2,781 bullet gas cylinders have been imported from India between July 16 and August 13 alone. Normally, 110,000 cylinders are distributed daily, but over the past 28 days, the average has been 132,000 cylinders per day. On August 12, 134 bullet gases were imported, with over 100 more arriving on the following Friday, the ministry reported. Currently, 58 gas industries operate nationwide with a combined storage capacity of 10,166 tons and a daily filling capacity of 17.5 million cylinders.

Commerce Secretary Narayan Prasad Sharma Dawadi emphasized the government’s full awareness of consumer rights guaranteed under Article 44 of the Constitution. He stressed that there is no real gas shortage and that increased demand is a result of past backlog and public nervousness. He cautioned against labeling the distribution difficulties as a ‘crisis.’ The ministry is undertaking policy reforms to formalize and increase transparency in the distribution system.

“We are in the stage of comprehensive reforms in the gas distribution system. Soon, separate pricing and cylinder policies for domestic and commercial use will be implemented,” Secretary Dawadi said. “Currently, the retail network is highly informal. We will set standards and certification processes for dealers and retailers going forward.”

The government has initiated a study of various options to either restart the Biratnagar Jute Mill, which was shut down 17 years ago, or to develop it as an industrial museum. The Ministry of Finance has proposed handing over management of the mill to the private sector on a contractual basis, converting it into a museum, or developing a smart industrial zone at the site. A task force, led by the Joint Secretary of the Ministry of Industry, Commerce and Supplies, is expected to submit a report within a month detailing the mill’s assets, liabilities, and potential strategic options. Kathmandu, 28 Shrawan. The government is preparing to revive the Biratnagar Jute Mill, which the Cabinet decided to dissolve after continuous losses 17 years ago, accompanied by a proposal to convert it into an industrial museum.

In 2066 BS (2009-2010), the Nepal government had decided to proceed with liquidation of the mill. Correspondence was initiated with the Office of the Company Registrar to commence the process. However, some governments intermittently attempted to restart the mill. The industry has remained fully closed since 2072 BS (2015-2016). The Ministry of Finance has recommended developing the mill site as an industrial museum. According to sources within the ministry, the government is reluctant to bear the costly expenses of restarting the industry and thus has proposed entrusting it to the private sector through long-term lease or management contracts.

Since the mill was Nepal’s first industrial establishment, the ministry has proposed, in coordination with the provincial government and Biratnagar Metropolitan City, to develop its land, machinery, equipment, and buildings as an industrial museum. Another option is to develop a Green Special Economic Zone on the mill’s land, launching smart industries based on clean green energy. The third alternative involves finding strategic partners to restart the jute mill with new technology and additional capital infusion. However, past failures of the mill’s operation under lease or management contracts have made the options of an industrial museum and a smart industrial zone seem more suitable, according to ministry sources.

Discussions regarding the industrial operations have also taken place with the Prime Minister’s Office. The brief report prepared by the Ministry of Finance notes ambiguity about the industry’s condition, assets, and liabilities. The operational status of machinery and equipment is unknown, and there is a lack of detailed market feasibility studies related to jute products, making it difficult to decide on reopening the mill. The report states: “The operational condition of machinery and equipment is uncertain, precise details of land and physical assets are unavailable, and liabilities including outstanding debts, taxes, and other obligations have yet to be confirmed.”

Originally established on July 13, 1936, as Biratnagar Jute Mills Limited with the purpose of producing jute, the mill operated profitably until 2050 BS (1993-1994), but later suffered losses for reasons that remain unclear. To study the deteriorated state of its tools, equipment, and structure, a task force led by the Joint Secretary of the Ministry of Industry, Commerce and Supplies has been formed. The group will assess the mill’s infrastructure, machinery, assets, liabilities, and review past government decisions. The task force is mandated to present a report within a month outlining potential revival strategies.

Privatization and restructuring efforts of Biratnagar Jute Mill have spanned three decades. On December 14, 1995, the Privatization Committee selected the mill for the next phase of privatization. Subsequently, the industry was handed over on management contracts. On July 9, 1997 (13 Asar 2053 BS), the Jute Mills notified the Ministry of Finance’s Privatization Unit that the mill was under management contract since that date. As losses mounted, the Cabinet decided to liquidate the mill in 2066 BS (2009-2010) and appointed liquidators via the Company Registrar with a six-month timeframe to complete the process. The committee also resolved to involve private investors in liquidation costs and to secure loans by mortgaging the mill’s assets.

The Ministry of Industry corresponded with the Company Registrar on March 7, 2010 to implement the committee’s decisions. On June 28, 2010, the government decided to entrust the security and care of the mill to the Armed Police Force, Morang Border Security Office. On January 1, 2010, the Ministry of Industry proposed a loan for employee severance payments. The Cabinet further instructed on January 4, 2010, to release the employees. By mid-January 2010, the Ministry of Finance had approved a loan of NPR 559.2 million for pending salaries and benefits. The Cabinet’s Economic Infrastructure Committee ordered a transfer of the mill’s land, structures, and factory ownership to the Ministry of Industry. In 2012, the Industry Ministry wrote to the Finance Ministry proposing full liquidation of the mill, but on February 28, 2012, the Cabinet reviewed and rescinded liquidation and instead directed the industry ministry to offer the mill to the private sector via lease.

Following this decision, the government handed over management of the mill to the Indian company Winsome International Limited on December 18, 2012 (3 Mangsir 2069 BS). The lease agreement required the company to pay the government NPR 13.5 million per year. The company operated the mill for 11 months and 18 days before power supply issues forced its closure in 2014 (2071 BS). On September 20, 2016, the jute mill terminated the lease agreement with the Indian company, and two days later, the board officially cancelled it. After the termination, the Ministry of Finance requested details regarding factory operations and rent payments on December 30, 2016. The industry responded that it was not operational, disclosed the state of assets, confirmed rent payments, and submitted audit reports.

During this period, former Industry Minister Mahesh Basnet attempted to reduce the government’s shareholding from 68 percent to 32 percent through appointed board chairman Basant Van and Managing Director Nilhari Kafle, reportedly planning a major financial fraud. However, the Department of Investigation’s active involvement prevented this scheme from materializing.

August 13, Biratnagar – Old structures covered with trees and shrubs outside; machines inside shrouded with cloths and jugs, cobwebs and the smell of dew. Surrounded by garbage and stagnant water, with tattered sacks left on the machinery and neglected motors abandoned after quail extraction. This is the current state of Nepal’s first industry, Biratnagar Jute Mills. Once a source of employment for 8,000 people, the mill still bears slogans written in white letters on its red walls: “Increase production, save the mill, reduce wastage, prevent losses.” However, no production has continued for years, and the mill is essentially defunct. Many walls are cracked, the southwest wall has collapsed, rain leaks through the roof, and many important parts have been lost.

Established in 1936 (1993 BS), the Jute Mills has been closed for several years. The government has formed a study committee to explore restarting operations, which has rekindled hope for revival. However, poor physical infrastructure, outdated machinery, and a competitive market pose significant challenges for resumption. Discussions are ongoing about whether the government should manage the mill directly or lease it to the private sector.

Former mill operator Phool Kumar Lalwani believes the jute mill can run with a small capital investment. “It is not difficult to operate; the machines there are usable. It is possible to restart the mill with a small investment,” he said, adding, “But it is better for the state to lease it out rather than operate it directly.”

Nandalal Devkota, chairman of the mill’s management committee, asserts that immediate operation of the mill is feasible. He stated that the formation of the government committee has further increased the likelihood. The committee’s preparatory work and government support have made the process easier. He prefers handing responsibility over to the private sector rather than government management. “It would require an investment of 500 to 600 million NPR to operate the mill,” he added. “Instead of running it, the government should facilitate operations and assign a dedicated team. We will proceed according to the committee’s recommendations.”

While the jute production technology has not changed, the old machines can still be used. However, according to industry expert Dharmanand Sanjel, the mill cannot operate using traditional methods. The old machinery cannot produce products that can compete in today’s market. With existing jute mills also facing closures, continuing operations in the old style is not viable. Devkota emphasized that only by adopting modern and technology-friendly production can the mill remain competitive. “Other jute mills are also struggling. Even exports of jute fabric to Bangladesh have ceased,” he explained. “Other jute industries in Biratnagar are currently operating with new technology. If modern techniques are introduced, the industry can survive. Producing new and environmentally friendly jute products is key to the mill’s survival.”

He also highlighted the strategic advantage of proximity to the Indian market, allowing production of jute bags and other materials. “There is ample area, so other industries could also operate here,” Devkota stated.

According to him, not all machinery inside the mill remains intact. Some smaller machines have been stolen, and the larger parts lie in ruins. Some small machinery imported during the last operation attempt were also stolen. Despite the ruin, the bell that signals the shift timing still rings every hour. What was once a three-shift operation employing 8,000 skilled workers now has only nine employees left, including five security guards who take turns ringing the bell. The roof no longer protects against rain, yet the remaining staff harbor a small hope to reopen the mill. Supervisor Manoj Khadka said the structures are strong and repairable to restart operations.

The establishment of Biratnagar Jute Mills spurred the development of the Morang-Sunsari industrial corridor and initiated a wave of industrialization across the country. Alongside Nepal’s industrial revolution, democratic movements also began at this mill. The government operated the industry until the 1990s. Although it was handed over to the Golcha Organization for privatization, it failed to run it. The government closed the industry in 2001 after paying 2,000 employees 550 million NPR. Later in 2012, operational responsibility was given to Bin Some International in Kolkata. Despite a six-month timeline to provide 33 kVA electricity, the company did not receive power for over a year and a half, resulting in a premature termination of the 25-year lease. Under the leadership of Vasant Van as chairman of the management committee, the mill briefly operated in 2018 but closed again shortly after starting twine production. Small machines connected to twine production are now missing and believed stolen from the industrial premises.

Anant Raj Nyaupane, a journalist who has studied the jute mill extensively, notes that the complex structure poses difficulties in restarting operations. “The machines are old, new technology has arrived, so trying to run it the old way is futile,” he remarked. “Although jute bags and related products can be produced, it is inappropriate for the state to operate the mill. The private sector should take responsibility.”

Communications Minister Dr. Bikram Timilsina has instructed relevant agencies to prioritize enhancing the quality of telecommunications services and expanding their reach through results-oriented efforts. Highlighting the state’s paramount responsibility to connect citizens in remote areas with communication services, he emphasized the effective utilization of funds from the Rural Telecommunications Development Fund (RTDF).

Sangita Pahadi, Managing Director of Nepal Telecom, noted the need for additional frequency allocations and support from the RTDF to extend services to remote regions. Minister Timilsina pointed out that citizens continue to report weaknesses in telephone and internet services, urging regulatory bodies and service providers to undertake serious and results-driven initiatives to expand services and improve quality.

The minister also acknowledged that, while some urban areas and remote regions still lack satisfactory telephone and internet services, the funds collected for rural telecommunications development through the RTDF have not been effectively deployed. He directed Nepal Telecom to develop clear business plans for service expansion and quality enhancement.

Arjun Ghimire, Chairman of the Nepal Telecommunications Authority, stated that although the authority has been working for a long time to expand services using RTDF funds, some projects remain incomplete. Nepal Telecom aims to extend approximately one thousand kilometers of optical fiber during this fiscal year.

August 14, Kathmandu – Former Nepali Congress President Sher Bahadur Deuba has expressed full confidence that the Supreme Court will deliver justice in the ongoing dispute over the party’s official status. Addressing the opposition’s national assembly, which began on Friday, he offered this assurance.

“Currently, the Nepali Congress, which has a long history, is engulfed in a severe conflict. Under the pretext of a special general convention, attempts have been made to weaken the party by violating its laws, constitution, and procedures,” Deuba stated. “Since this matter is under review by the Supreme Court, I prefer not to comment further. However, I am steadfast in my belief that justice will be served in our favor.”