Hetauda Textile Industry Set to Resume Operations After 24 Years

Makwanpur. After 24 years of closure, there is a buzz about the Hetauda Textile Industry resuming operations. Although discussions about restarting this industry have surfaced with the formation of a new government, work has not yet begun. The Nepali government is preparing to hand over the responsibility to the Nepali Army for trial production on a small scale in the initial phase. It is claimed that a budget has also been allocated for the repair of the industry's machinery. Minister of Industry, Commerce, and Supplies, Gauri Kumari Yadav, while responding to questions raised during the discussion on the ministry's allocation titles in the National Assembly some time ago, stated that 3.3 million rupees have been released through the Ministry of Finance for the repair of the Hetauda Textile Industry and that repair work has also commenced. 'We had written to the Ministry of Finance for 3.3 million rupees for the textile industry. That amount has been released. The money has reached the industry, and repair work has also started. I want to assure you that the industry will come into operation within a few months,' she said. According to Minister Yadav, the government has moved forward with plans to restart not only the Hetauda Textile Industry but also the Butwal Spinning Mill and the Cotton Production Program in Nepalgunj. The government is awaiting a Due Diligence Audit (DDA) report to prepare a long-term operational modality for closed state-owned industries. Minister Yadav stated that a decision on how to operate other sick industries will be made after the report. The resumption of the Hetauda Textile Industry was included in the 100-day achievements of the government published by the Office of the Prime Minister and Council of Ministers. According to Krishna Bahadur Raut, Secretary of the Ministry of Industry, Commerce, and Supplies, the government has given approval to the Nepali Army for trial production in the initial phase. He stated that an estimate of approximately 5 million rupees has been prepared for the repair of the industry's dilapidated physical structures and sent to the Ministry of Finance, and the necessary funds have been released. Sanitation Done, But Repair Work Not Started Although the government claims that repair work has begun at the industry, the actual situation on the ground is different. While general cleaning work has been done in the industry premises, no concrete work has been done on repairing and operating the machinery. According to Sangita Kunwar, head of the Industrial Area Management Limited, which is responsible for the management of the Hetauda Textile Industry, no significant construction or repair work has started beyond general cleaning of the industry premises. She mentioned that the industry minister Gauri Kumari Yadav, along with representatives from the Ministry of Industry, Ministry of Finance, and the Prime Minister's Office, had inspected the industry multiple times. During the inspection, the condition of the buildings, machinery, and physical infrastructure was studied, but repair work has not formally begun. 'We have started cleaning the industry premises after the government began preparations to operate the industry, but since it has been closed for many years, it will take time to remove the bushes and clean the structures. Cleaning is currently underway,' Kunwar said. A security post of the Armed Police Force has been stationed in the industry premises since 2075 BS. A few days ago, the Nepali Army, Nepal Police, and Armed Police jointly cleaned the industry premises. The management stated that for the first time since the industry closed, the exterior structure and concrete parts of the building have been cleaned. Army's Proposal for Industry Operation The Nepali Army had previously submitted a proposal to the government for an investment of approximately 2 billion rupees to operate the Hetauda Textile Industry. It is said by government officials that based on that study, preparations for trial production are underway. The army's study indicated that the industry could be operated with an initial investment of 1.93 billion rupees and an annual operating cost of 78 million rupees, which the army would arrange itself. The army had stated that it would not require capital from the government to run the industry, as the army's welfare fund has sufficient budget. The army's proposal also mentioned that there would be no market problem if the clothes produced by the industry were made mandatory for use by security agencies and civil servants. The army's report also noted that the industry has 166 ropanis of land available, the necessary minimum infrastructure for the industry, and most of the raw materials required for industry operation are available within the country. Established 48 Years Ago, Closed for 24 Years Established in 2032 BS within the Hetauda Industrial Estate, the textile industry started production in 2035 BS. Inaugurated on January 18, 2035, the industry produced cotton yarn, plain, colored, printed, and white fabrics, as well as uniforms required by the Nepali Army. At one time, about 1,200 workers were directly employed in the industry. When production was good, bonuses were even distributed to employees. However, after 2046 BS, due to increasing political interference, strikes, weak management, old machinery, rising production costs, and inability to compete with foreign textiles, the industry continuously incurred losses. Finally, on January 31, 2001, a decision was made to close the industry. Even after the industry closed, various governments repeatedly announced its reopening. There were attempts at privatization, study committees were formed, budgets were allocated, and with changes in industry ministers, new plans also emerged, but none of the efforts materialized. Former industry ministers Astalaxmi Shakya, Mahendra Prasad Yadav, Anil Kumar Jha, Mahesh Basnet, Navindra Raj Joshi, among others, had expressed commitment to operating the industry. During the tenure of former Industry Minister Dilendra Prasad Badu, a ministry team also conducted a study. On March 28, last year, after Home Minister Sudhan Gurung stated that an industry would be established to produce uniforms required by the police domestically, the debate between establishing a new industry or reviving the Hetauda Textile Industry began again.