Nepali Army Starts Trial Production to Revive Hetauda Textile Factory

The Nepali Army has started trial production at the long closed Hetauda Textile Factory as part of the government's plan to revive it. Krishna Bahadur Raut, the Secretary of the Ministry of Industry, Commerce, and Supplies, shared this update on Saturday during a press conference marking the government's first 100 days in office.

The cabinet officially granted theoretical approval to restart the factory on July 2, 2026 (Asar 18, 2083 BS). The facility had been completely shut down since late January 2013 (Magh 12, 2069 BS) following a government liquidation decision. Secretary Raut confirmed that following the recent approval, the Ministry of Finance has already released the required budget, allowing the army to proceed with the testing phase.

Currently, the government is conducting comprehensive asset and liability evaluations for seven closed or struggling public industries, including the Hetauda factory. The final model for how these factories will be managed and run in the long term will be decided once these evaluation reports are completed. Additionally, the cabinet has approved extending the expired mining licenses for limestone and red clay to support the ongoing operations of Udayapur Cement Industries Limited.