The government enterprise is in process of resuming its operation after shutting down manufacturing for two decades
KATHMANDU, Dec 26: Janakpur Cigarette Factory (JCF), which has stopped manufacturing cigarettes under various brands for over two decades, has called for the annual general meeting (AGM) as the government gears up its efforts to revive the industrial unit.
Issuing a public notice last week, JCF board has scheduled the company’s AGM for January 9, 2022. The AGM is set to settle the company’s liabilities of the past two decades starting from fiscal year 1999/2000.
Govt plans to bring Janakpur Cigarette Factory back into operat...
The Ministry of Finance (MoF) has recently formed a three-member task force led by the MoF Joint-secretary Chandrakala Poudel to resume the operation of the factory. The panel, among other things, has been tasked to estimate the cost of operating the factory.
Built in 1965 as a gift of the then Soviet Union, the factory was the market leader in cigarette business during its heyday. The company has remained closed completely since 2011 after sinking into a mess due to political interference, mismanagement and overstaffing. Citing an increasing financial burden, the then government in 2013 decided to close the factory.
In a number of attempts earlier, the government time and again stepped up efforts to resume operation of the factory. A study panel formed under Joint-secretary Ramesh Sthapit in 2011 also underscored the possibility of bringing the factory back to life. This, however, was not implemented.
According to government records, JCF owns land and buildings in 26 locations in the country from Biratnagar in the east to Mahendranagar in the far west. The property valuation of the factory has been estimated to be over Rs 8 billion.
