The crunch in operational capital occurred due to high maintenance costs and high wastage due to old rotary filter, cigarette producing machine, A/C plant and other equipment.
The factory was set up 45 years ago with Russian support. Most of the machineries are those installed during the establishment of the factory.
To change the machines, it will cost Rs 440 million. Technicians said the factory is in dilapidated condition and it would need Rs 1 billion immediately to keep the factory to operate smoothly.
Technicians said the factory is suffering a monthly loss of over Rs 12.5 million due to old machineries.
The factory management has urged the government to arrange funds for the factory by selling its immovable assets like land. It is said that the factory owns land worth Rs 2.75 billion.
Meanwhile, the factory is facing problems in arranging over Rs 260 million funds to be paid in gratuity funds to over 240 staffers who retired recently.
The production from the factory has also been decling due to the lack of modern equipments. Last year, the factory produces 1.15 billion sticks of cigarettes against the target of 2.36 billion sticks.
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