Hopes rise for revival of Butwal Thread Factory under new government

Butwal. Following the political shift driven by the Gen-Z movement, the recently concluded House of Representatives election has brought the Rastriya Swatantra Party to the helm of government. With this, citizens are hopeful that long-standing systemic issues will finally be addressed.

Among these issues is the Butwal Thread Factory. Stakeholders are optimistic that the factory, which has remained closed for a long time, may soon resume operations.

Although not explicitly included in the Balen Shah-led government's 100-point governance reform agenda, stakeholders remain confident that the factory could be revived during his tenure.

Acting General Manager of the factory, Dolraj Sharma, expressed hope that the current government would play a necessary role in resuming operations, stating that the factory could be restarted if the government shows the political will.

Tanka Pokharel, President of the Nepal Chamber of Commerce, Lumbini Province, noted that the factory closed due to management failures and urged the new government to prioritize its reopening.

According to him, if the factory resumes operations, it could provide employment to over 1,000 people and open doors for thread exports.

Pokharel added that the private sector would support the government in operating the state-owned factory, suggesting that the thread produced could be used to manufacture uniforms for government employees and security personnel.

Upendra Agrawal, President of the Butwal Industry Association, emphasized the need for restructuring the factory, suggesting that existing machinery should be repaired and new technology integrated. He stated that if the factory cannot be operated, the land it occupies should be repurposed for other industries.

Agrawal said, 'We industrialists are struggling to find land, yet the thread factory occupies a large area within the industrial zone while remaining closed. If the government does not intend to run it, it should create an environment for other industries to be established there.'

Hari Prasad Aryal, President of the Butwal Chamber of Commerce and Industry, stressed the need to operate the factory with modern technology. He argued that state-run operations, rather than privatization, would yield long-term national benefits, noting that a public-private partnership model could also be a viable alternative.

The government established the Butwal Thread Factory in 2039 BS with the objective of producing cotton in Khajura, Nepalgunj, manufacturing thread in Butwal, and producing textiles in Hetauda for the market. Former Chamber of Commerce President Jeevan Prasad Ojha recalled that the factory was once a source of national pride.

He said, 'Thread produced in Butwal was not only sent to Hetauda but also exported to India. However, political interference ruined the management, eventually leading to the factory's closure.'

Recently, Home Minister Sudhan Gurung expressed that the government intends to produce uniforms for the Nepal Police domestically. Tanka Pokharel believes this statement has further fueled hopes for the revival of the Butwal Thread Factory.

Professor Madhav Kumar Paudel stated that the operation of the Butwal Thread Factory would have a significant impact not only on the local economy of Butwal but on the entire nation. He explained that reviving the factory would not only provide jobs for youth but also benefit cotton farmers and traders associated with the industry.