PEDB asks govt to privatise mill

KATHMANDU, DEC 02:

The Public Enterprises Directorate Board (PEDB) has recommended the government to privatise Birgunj Sugar Mill.

The board has highly recommended the government not to invest in the factory but to allow the private sector to run it, said chairman at the board Bimal Wagle, adding that the government should but lease the land to a private company till the time it operates the factory.

The board has also recommended the government that only sugar and its subsidiaries like alcohol products must be allowed to be produced on its premises once the government provides the land on lease. Any new company will be able to produce alcohol since there is a separate alcohol factory inside Birgunj Sugar Mill.

It is likely that the Ministry of Industry will soon invite the private sector to submit its proposal with details to operate Birgunj Sugar Mill, according to Wagle. The ministry will also ask the companies to be clear on what conditions they will buy the equipment and other infrastructure, he added.

The board has also recommended the government to settle the status of the 193 employees of the mill before providing it to a private company.

It has also opened the door for operating the company in a cooperative model. However, the chances of running the factory as a cooperative is very nominal, a member at the board said.

The government had decided to reopen at least three public enterprises –– Birgunj Sugar Mill, Agriculture Tool Factory, and Butwal Dhago Udhyog –– immediately in October.

Launching the Immediate Action Plan to Reform Governance and Economic Sector, the government had directed the Public Enterprises Directorate Board to keep the operation of these three public entities in priority.

The government had decided to dissolve the state-owned Birgunj Sugar Mill in 2007 citing lack of profit. Due to its closure, farmers of Parsa district have been forced to take their sugarcane — which amounts to 50,000 metric tonnes — for crushing to nearby districts.

CEO at RBS soon

Public Enterprises Directorate Board will soon recommend the government to appoint a chief executive officer (CEO) at Rastriya Beema Samiti (RBS). It has received applications from nine aspirants for the post, said joint secretary at Finance Ministry Khum Raj Punjali. It will start the shortlisting process soon.

Source: THT