Russians might be interested to revive Birgung Sugar Mills

BIRGUNJ, Dec 25:

Russian ambassador to Nepal Sergey Vasilievich Velichkin on Tuesday said Russian investors might be interested to revive Birgunj Sugar Mills.

Velichkin said this during an inspection visit of the mills which has remained shut for 11 years.

Talking to the media after visiting the mills, Ambassador Velichkin said there is a possibility of bringing Russian investment to revive the factory. “We can encourage Russian investors to bring the factory back into operation.

For that to happen, Nepal should create investment friendly environment,” he added. He said security of investment and assurance of profit is important for bringing foreign investment.

Birgunj Sugar Mills was established five decades ago under grant assistance of the Russian government. It used to crush 18,000 tons of sugarcanes per day for four months every year. The cabinet decided to close the factory in February, 2003 explore options for privatization.

However, privatization talks have not seen any progress.

Last year, the government made a u-turn and decided to revive the mills by forming a board of directors.

However, no progress has been made since then.
Around 184 employees of the factory have been pressing the government to bring the factory back into operation.

Source: Republica