Panel asks govt to either liquidate or privatise Biratnagar Jute Mills
KATHMANDU, NOV 23 -
The parliament’s Finance and Labor Relations Committee (FLRC) has directed the government to either liquidate or privatise the government-owned Biratnagar Jute Mills which has remained closed for the last couple of years.
The committee has asked the government to begin homework in this regard at the earliest. The committee’s direction is based on its sub-committee’s recommendations. The sub-committee had carried out a field study of jute industries in Sunsari-Morang Industrial Corridor two months ago.
Established in 1936, Biratnagar Jute Mills is the oldest of its kind in the country. Since its closure some two years ago, its property and equipment worth millions of rupees have remained unused. The factory occupies 69 bighas of land.
The sub-committee’s report reads, “It will be appropriate if the government either liquidates the company or transfers its ownership to the private sector.” FLRC, however, warned the government to not to run the factory on its own.
The sub-committee had submitted the report to FLRC three days ago. The report has overview of the country’s 11 jute industries along with recommendations.
In a bid to help jute industries regain their past glory, the parliamentary committee has directed the government to ensure jute farmers’ easy access to fertilisers and seeds and provide economic grants to the farmers promptly.
Among other suggestions of the sub-committee include the government and ministries concerned act seriously towards ensuring regular flow of electricity at jute mills, provide customs and value added tax (VAT) exemptions for import of spare parts and modern equipment, and establish a Jute Development Board for the development of the industry.
Of the 11 jute mills based in Sunsari-Morang Corridor, two have already been shuttered, according to the report. Shanta Basnet, lawmaker and coordinator of the sub-committee, said remaining nine industries that are in operation have provided direct employment to some 13,425 individuals. “However, these industries, which once had seen billions of rupees of investment, are gradually witnessing a downfall. Some of them are even struggling for survival,” said Basnet.
The report said as jute products negligibly consumed in the local market, they are mostly exported to India. However, due to the additional cost in export which makes these products expensive compared to India’s, they are gradually losing their market share. The nine jute mills have a joint production capacity of 309 metric tonnes per day.
The report has also painted a dismal picture jute farming and production. “Jute farming area is estimated to go down by 20 percent this year,” said the report. The report has also estimated that the country will lose around 40 percent of the jute production this year.
Another member of the inspection team said there is dire need of upgradation of physical infrastructure in jute mills. “Workers are vulnerable to injuries as most of the jute mills have not even followed simple measures of work place safety,” the team member said.
Source: Kantipur
