Land of Bhrikuti Paper should not be misused: Minister Pun

CHITWAN, Oct 2: The government will not allow promoters of the Bhrikuti Papers and Pulps (BPP) to misuse the factory´s land by dividing it into plots for housing development purpose, Finance Minister Barsha Man Pun has said.



The minister made the comment on Tuesday during an on-site visit of the company located in Nawalparasi. His comments stem from claims made by company´s workers that promoters are planning to shut down the factory for good and use the company´s land for housing development purpose.[break]



"The government had handed over the company to keep it operational," Pun said. "The promoters can´t shut down the factory and use the land for housing development purpose."



The company, which was acquired by Golchha Group following its privatization, has remained closed for almost two years now. The promoters have cited problems such as labor disputes and shortage of raw materials, among others, as reasons for the closure. Prior to its closure, the company, established in 1992 with assistance from the Chinese government, used to produce 530 tons of paper per month.



Citing example of Hari Siddhi Brick and Tile Factory, which was prevented by the Supreme Court to build a medical college on the factory´s land, Pun said the BPP will not be allowed to make the same mistake.



"Companies that were handed over to the private sector following privatization can´t be shut down in this manner," he said.

But even if promoters decide to close down the factory, locals can lay claim to the land.



"The government had acquired the land at a low price at the time of the company´s establishment. If promoters want to close down the factory then the locals will have the first right on the land," Pun said. "The promoters can´t do as they wish."

Pun was, however, optimistic about reopening of the factory.



"Promoters have asked me and the prime minister to play a mediatory role in opening the closed factory. This company will come into operation," Pun said. He also assured workers that they would get their due salary soon.



The company, which employs 374 people, has not paid the salary of workers since December 2010.



The workers have said that the factory should not be closed when the demand for paper is high in the country.

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