Kathmandu. The government is to conduct a feasibility study to resume the Birgunj Sugar Factory, which has been closed for years. The taskforce has been formed at the initiation of Minister for Industry, Commerce and Supplies, Gauri Kumari Yadav, to study the present condition of the factory and prepare the feasibility and necessary action plan for resumption of the industry.
According to the Ministry, the task force has been formed to review the present condition of Birgunj Sugar Factory, the decisions taken in the past and the study and report prepared before this and identify the steps to be taken.
The taskforce has been given 15 days to submit its report. C.D.E. of the Ministry of Industry, Commerce and Supplies. The taskforce formed under the coordination of Shreekanta Yadav comprises section officers of the ministry and officers of the Department of Industries as members.
The task force will not only study whether or not to reopen the factory. Financial, economic, technical and legal basis required for the operation of the factory will also be evaluated.
The suggestions and recommendations given by various task forces formed earlier on the issue of Birgunj Sugar Factory would also be studied and the reasons for not implementing the past decisions would be identified.
The task force will study the condition of the buildings, production structures, machinery and spare parts in the factory premises and come up with a conclusion on whether the factory can be operated with the old structure and equipment or investment in new technology and structures. It is expected to lay the groundwork for the potential investment and technical restructuring needed to restart the factory.
The condition of the land and other properties owned by the Birgunj Sugar Factory has also been kept under the purview of study. The task force will identify legal and managerial problems related to the factory property and suggest options for resolving it. The ministry hopes that this will identify the necessary process to remove the obstacles related to the property in the operation of the factory.
Although the Birgunj Sugar Factory has been closed for a long time, there was talk of reopening it time and again. However, due to lack of concrete conclusions regarding the factory’s assets, old machinery, legal disputes and investment required for operation, the process of resumption of resumption could not move forward.
This time, however, the government has included the property, machinery, financial condition, technical capacity, legal complexities and commercial feasibility of operation of the factory. The taskforce report expected within 15 days would prepare the basis for operating the Birgunj Sugar Factory from the old structure, making new investment through restructuring or adopting other business options.
It is expected that the resumption of the Birgunj Sugar Factory will affect sugar production, employment and local economic activities along with the commercial use of public property which has been lying idle for a long time.
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