Biratnagar Jute Mill to start test production in 10 days

BIRATNAGAR, MAR 06 -

The country’s oldest jute mill — Biratnagar Jute Mill — is all set to start test production. Minister for Industry Anil Kumar Jha said the mill will start production within the next 10 days.

After the test production, according to officials, the mill will take at least a month to start full-fledged production as repairs and mechanical work of defunct machines have not been completed.

The mill, which has remained shut for the last four years, is on track to resume operations after an Indian company was awarded a lease contract. Kolkata-based Winsome International has been awarded the project for 25 years.

Ashok Pokhrel, the mill’s board chairman, said the process of contract handover to the company has been finalised. “The company started the repair work by hiring technicians from India,” he said, adding the company is investing Rs 100 million for the repair work.

As per the contract agreement, the company will provide Rs 13.5 million annually to the Nepal government for first five years of operation. After five years, the company will raise the amount by 5 percent annually. Jha said the company has deposited a security amount of Rs 30 million.

Resumption of the mill is estimated to create around 2,000 jobs. Apart from regular productions like jute sacks and rope, the company plans to adopt the “Jute Park” concept to produce a wide variety of jute products. “It will produce carpets and bags and also operate a training centre,” Pokhrel said.

Mahesh Jaju, central member of the Federation of Nepalese Chambers of Commerce and Industry, welcomed the government’s move to privatise the mill. “The more encouraging news is new jobs are being created,” he said.

It’s not the first time that the mill has been handed over to the private sector. The government had earlier awarded the mill’s contract to the Golchhas, but the mill could not operate smoothly due to political influence. The mill was established in 1936. During its heyday, the mill used to produce around 50 tonnes of jute products daily.

Source: The Kathmandu Post