KATHMANDU: The Nepal Army has proposed to resume operations of the Hetauda Textile Industry, lying idle for nine years, with an investment of Rs 1.93 billion.
According to Prime Minister Pushpa Kamal Dahal Prachanda’s Secretariat, the Prime Minister discussed to NA officials and other stake holders about reviving the public industries lying neglected and deserted since long.
The policy and program of the current fiscal year had mentioned the revival of industries that were shut down. Accordingly, the Prime Minister has initiated discussions on the matter, the Secretariat shared.
Established in mid-1975, the government had brought the Hetauda Textile Industry into operation with economic and technical assistance from the Chinese government.
The industry had been completely shut down since 2000 after racking up huge losses and subsequently liquidate in 2013.
The study on the feasibility of resuming industrial operations had been assigned to the Nepali Army by the government.
The army has now handed over the feasibility study report, including the transfer of ownership of the industry to the Nepali Army, the construction of a repair and maintenance facility, and the purchase of new machinery.
The report highlights that the Nepali Army has sufficient budgetary allocation for the operation of the industry.
It mentions the availability of 166 ropanis of land under the ownership of the industry, adequate infrastructure for industrial operations, and the abundance of raw materials within the country.
The demand for cloth, especially for government employees like the Nepal Police, is expected to face no market issues.
Additionally, the initial estimate for the revival of the industry is Rs 1.93 billion, with an additional annual operational expense of Rs 780 million.
The report foresees a positive outcome for the industry, turning profitable within nine years of operation, addressing the employment crisis and contributing significantly to the country’s industrial development and overall self-sufficiency.
After briefing, Prime Minister Dahal stated that the study conducted by the Nepali Army is crucial.
“We will form a small team politically and make solid decisions in the Cabinet meeting,” he added.
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