Biratnagar Jute Mill: Indian company wins bid to revive factory

BIRATNAGAR, SEP 26 -

Biratnagar Jute Mill, which has remained shut for the last four years, is on the way to being reopened with an Indian company winning a lease contract for the mill. Kolkata-based Winsome International has been selected to operate the historical factory on lease as it was the highest bidder, said officials of the mill.

“We decided to appoint Winsome as it offered to pay Rs 13.5 million annually to the government, which is the biggest amount offered from among the three competing bidders,” said Ashok Pokharel, chairman of Biratnagar Jute Mill.

Two Nepali bidders, Archana Interesh and Lalwani Jute Bag Udyog, had taken part in the bid. They had offered annual payments of Rs 12.6 million and Rs 12.8 million respectively.

According to Pokharel, the tender proposals were opened on Monday in the presence of representatives from the Ministry of Industry. He said that they would sign a contract with the Indian company within a week. “During the signing of the contract, we will fix the modality and procedures for the mill’s operation,” he said.

According to him, the closed mill is expected to resume operation within the next three months. An estimated investment of Rs 100 million is required to get the factory back in shape. The factory has a production capacity of 30 tonnes daily, and employed more than 1,800 people when it was running at full capacity.

Due to political intervention and politicization of trade unions, the government and Arihant Multi-fibre from the private sector also failed to run the factory properly. Consequently, the government shut down the factory after spending Rs 550 million to pay off its 2,000 employees. Recently, it was decided to reopen the factory by giving it on lease.

The oldest factory in the country also contains a powerhouse and railway yard that is connected to the railway station at Jogbani, India.

Source: The Kathmandu Post