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32 factories shut in two decades

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BIRATNAGAR, Oct 12: More than 32 big and small industries in Sunsari-Morang Industrial Corridor - one of the largest industrial areas in the country - have closed over the past two decades.



Majority of them left the corridor because of energy crisis. Moreover, even the industries that are in operation have cut production, citing power crisis. Most of those industries were manufacturing jute, garments, ghee and corrugated sheets among others. [break]



Som Adhikary of Morang Trade Organization said most of the industries in the corridor were facing difficulties to operate at their optimum capacity due to energy crisis. “Almost all the industries in the corridor have curtailed production due to power cuts,” Adhikary added.



Though many industries have left the corridor, about half a dozen big industries with Indian investment are still in operation. Surya Nepal - a subsidiary of India´s ITC Ltd - recently closed its corridor-based garment unit, citing labor problems.



Apart from energy crisis, local industrialists also cite political instability, labor militancy, lack of raw materials and state apathy to industrial sector as the other reasons behind closure of industries.



Twelve industries have shut operation in Mills Area (near Biratnagar) alone. Only two industries - Raghupati Jute Mills and Hulas Motors - are currently in operation in Mills Area.



Textile producers Ganapati Cotton Mills and Everest Industry ceased operation 15 years ago after they failed to compete with cheaper Indian products.



Morang Sugar Mill, Morang Auto Works, Shah Industry, Ashok Textile and Hanuman Jute Press are among the industries in the corridor that have closed during the period.


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