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The Nepalese government is stepping up efforts to revive the country’s industrial base by bringing long-shuttered factories back into operation, with textile and jute mills among the facilities being considered for reopening.
The restart effort at Hetauda Textile Industry has provided an early test of the government’s approach. Media reports say the Butwal Spinning Mill in Rupandehi and Biratnagar Jute Mill are now also being considered for revival.
Hetauda Textile Industry recently conducted its first preliminary test production after remaining closed for nearly 25 years.
A technical team from the Army’s Directorate of Military Materiel Production in Kathmandu reportedly spent 40 days at the facility. Around 40 technicians and soldiers worked to clear the neglected premises, overhaul the ageing power system and service mechanical looms that had remained idle for years.
Although the initial test run was successful, substantial work remains before Hetauda Textile Industry can resume full-scale commercial production.
Meanwhile, the government has reportedly begun assessing its investment in Butwal Spinning Mill. An expert team is conducting due diligence on the factory’s assets and liabilities, while a five-member technical team is examining its buildings, machinery, production infrastructure, market potential and the investment required to restart operations.
The assessment has raised hopes among local industrialists and businesses that the mill could resume production. Industry representatives, however, have stressed that another study would have little value without concrete follow-up action.
The president of the Rupandehi Chamber of Commerce and Industry said reopening the factory could create jobs, boost cotton farming and the textile sector, and provide fresh momentum to the economy of western Nepal.
A former president of the Butwal Chamber of Commerce and Industry and a local shareholder in Butwal Spinning Mill said much of the factory’s physical infrastructure remains usable. Some machinery and equipment imported from China could be repaired and put back into operation, while modern equipment could be purchased where necessary, he said.
He also suggested that the factory should be operated by a competent chief executive free from political interference rather than through direct government management.
He proposed linking the cotton industry in Banke with Butwal Spinning Mill and Hetauda Textile Industry to create an integrated industrial chain. Such a network could produce uniforms for the Nepali Army, Nepal Police and government employees while supplying the domestic market and creating export opportunities in India and other countries.
The revival efforts reflect the government’s broader push to make use of existing industrial infrastructure, create employment and reduce the need for new investment in entirely new production facilities.