KATHMANDU, Aug 12: Following the successful reoperation of Hetauda Textile Industry, the government has moved to explore the revival of Biratnagar Jute Mill (BJM), one of Nepal’s oldest industrial establishments.
The government has decided to form a task force to study the feasibility of resuming operations at the BJM, which has remained closed for years. Established in 1936, the mill has been without a board of directors since 2021.
The mill was producing around 45 tons of jute products daily before 1992. However, it was shut down several times over the years amid problems linked to politically appointed boards of directors.
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Birendra Kumar Yadav, secretary at the Office of the Prime Minister and Council of Ministers (OPMCM), said a multistakeholder meeting held at the OPMCM on Monday decided to form the task force.
The panel will study the financial, technical and legal aspects of reviving the mill, along with other issues related to its potential operation. It will also assess the current condition of the mill’s physical infrastructure and machinery.
A preliminary study has estimated that between Rs 1.5 billion and Rs 2 billion would be required to revive the BJM, Nepal’s first industrial establishment.
The mill also has more than Rs 30 million in unpaid wages owed to 46 former contract workers. The task force has been directed to prepare and submit a revival plan within one month of its formation.
The move comes after the government announced plans in the budget for fiscal year 2026/27 to revive seven closed industries through a public-private partnership model within one year. “The initiative is part of broader efforts to boost industrial revival and attract private sector participation in state-led economic restructuring,” the budget statement said.
As part of the initiative, the government brought Hetauda Textile Industry back into operation on Saturday. The government has assigned the Nepali Army to repair the dilapidated factory and restore its production.
The Hetauda Textile Industry was established in 1975 with financial and technical assistance from the Chinese government and capital investment from the Government of Nepal. It remained closed from 2000 until its recent reoperation.
