Kathmandu— Nepal’s Minister of Industry, Commerce and Supplies, Gauri Kumari Yadav, inspected the Hetauda Textile Industry Limited on Saturday as it initiated trial production after nearly two decades of closure. The state-owned factory, established in 1975 and employing over 1,100 people at its peak, ceased operations in 2000 due to internal issues and market competition. Following a government decision to promote domestic investment and reopen closed industries, the Nepali Army was tasked with maintenance and repairs, leading to the restart of initial production on August 8.

Factory Revival Efforts

Minister Yadav stated that some of the looms at the Hetauda Textile Industry have been brought into operation, noting that the facility is currently undergoing both maintenance and trial runs. She affirmed the government’s intention to operate the industry at full capacity soon while keeping costs low. The reopening aligns with a broader governmental policy focused on bolstering domestic investment and production within Nepal.

Nepali Army's Role in Restart

The Nepali Army assumed responsibility for maintaining and operating production at the Hetauda Textile Industry, initiating cleanup efforts and equipment repairs. As of August 8th, twelve of the factory’s 488 looms have been successfully put into operation through the Directorate of Military Materials Production. This intervention followed an initial inspection by Minister Yadav in late May, which prompted preparations for the industry's revival.

Future Operating Model Under Review

Sangeeta Kunwar, Chief of the Hetauda Industrial Area Management Office, indicated that a detailed report on the trial production will be submitted to inform decisions regarding technology adoption and the overall operating model. The government is evaluating options to ensure sustainable and efficient operation of the facility going forward.

The Hetauda Textile Industry’s progress through trial production will determine its future viability and potential for full-scale operation, with a decision on long-term strategy expected following the submission of a comprehensive report.

(With inputs from RN)

Originally published on abcnews.com.np.