KATHMANDU: The government has finally decided to liquidate Hetauda Textile Factory, concluding that the factory cannot be revived.
It has completed the valuation process, said joint secretary at the finance ministry Khum Raj Punjali. “The government has valuated its land at Rs 210 million,” he said, adding that the building has been valuated at Rs 81.4 million and machinery parts at Rs 81.2 million.
“The government had appointed Daman Bahadur Bista as liquidator who recently submitted the valuation report of the factory’s assets.”
As per the liquidation plan, the factory area will be taken over by Industrial Estate Management Ltd (IEML), Punjali added.
Hetauda Textile Factory was closed a decade ago after it posted a huge loss due to its failure to compete with cheap imported textiles that flooded the market. Prior to its closure, the factory used to consume 1,200 tonnes of cotton and used to employ about 1,200 individuals.
The government has decided to invest the land and buildings as its shares and sell the machinery parts, he said.
Industrial Estate Management Ltd has already initiated the process of finding another suitable company to be operated on the premises of Hetauda Textile, he said, adding that IEML will be responsible for utilising the land and bringing in a new factory.
Punjali further said that the liquidation process will gain momentum once the cabinet approves the liquidation proposal. “The government will appoint another liquidator after the cabinet approves the liquidation proposal.”
The factory holds eight acres of land, old buildings and about 15,700 sets of machines used in thread-making, dyeing, and spinning, among others, according to the Ministry of Industry.
The incumbent prime minister Dr Baburam Bhattarai had, earlier opposed the idea of
privatising the factory, saying that the government should operate it. When he was the
finance minister in 2008, Dr Bhattarai had claimed he would revive moribund and sick firms demonstrating a socialist manifestation and a big planner attitude.
He had promised to inject money and resuscitate state-owned enterprises like Hetauda Textile, completely compromising efficiency and productivity in favour of a populist political agenda of creating employment. He had also claimed that government agencies and security forces would consume production from these incompetent companies.
However, after the government repeatedly failed to operate the factory, Dr Bhattarai has, in contradiction to his earlier stand, started the process of liquidation.
The assets of Hetauda Textile Factory could not be sold
even after six years of its liquidation, according to the Financial Survey.
“By fiscal year 2010-11, the government’s share investment in 37 government owned enterprises totalled Rs 92.19 billion, whereas loan investment stood at Rs 95.16 billion as compared to a share investment of Rs 82.75 billion and loan investment Rs 84.91 billion a fiscal year back, indicating a rise in government’s share investment by 11.40 per cent and loan investment by 12.07 per cent,” it stated, adding that of the total 37 PEs, some 14 PEs are operating at net loss.
It has completed the valuation process, said joint secretary at the finance ministry Khum Raj Punjali. “The government has valuated its land at Rs 210 million,” he said, adding that the building has been valuated at Rs 81.4 million and machinery parts at Rs 81.2 million.
“The government had appointed Daman Bahadur Bista as liquidator who recently submitted the valuation report of the factory’s assets.”
As per the liquidation plan, the factory area will be taken over by Industrial Estate Management Ltd (IEML), Punjali added.
Hetauda Textile Factory was closed a decade ago after it posted a huge loss due to its failure to compete with cheap imported textiles that flooded the market. Prior to its closure, the factory used to consume 1,200 tonnes of cotton and used to employ about 1,200 individuals.
The government has decided to invest the land and buildings as its shares and sell the machinery parts, he said.
Industrial Estate Management Ltd has already initiated the process of finding another suitable company to be operated on the premises of Hetauda Textile, he said, adding that IEML will be responsible for utilising the land and bringing in a new factory.
Punjali further said that the liquidation process will gain momentum once the cabinet approves the liquidation proposal. “The government will appoint another liquidator after the cabinet approves the liquidation proposal.”
The factory holds eight acres of land, old buildings and about 15,700 sets of machines used in thread-making, dyeing, and spinning, among others, according to the Ministry of Industry.
The incumbent prime minister Dr Baburam Bhattarai had, earlier opposed the idea of
privatising the factory, saying that the government should operate it. When he was the
finance minister in 2008, Dr Bhattarai had claimed he would revive moribund and sick firms demonstrating a socialist manifestation and a big planner attitude.
He had promised to inject money and resuscitate state-owned enterprises like Hetauda Textile, completely compromising efficiency and productivity in favour of a populist political agenda of creating employment. He had also claimed that government agencies and security forces would consume production from these incompetent companies.
However, after the government repeatedly failed to operate the factory, Dr Bhattarai has, in contradiction to his earlier stand, started the process of liquidation.
The assets of Hetauda Textile Factory could not be sold
even after six years of its liquidation, according to the Financial Survey.
“By fiscal year 2010-11, the government’s share investment in 37 government owned enterprises totalled Rs 92.19 billion, whereas loan investment stood at Rs 95.16 billion as compared to a share investment of Rs 82.75 billion and loan investment Rs 84.91 billion a fiscal year back, indicating a rise in government’s share investment by 11.40 per cent and loan investment by 12.07 per cent,” it stated, adding that of the total 37 PEs, some 14 PEs are operating at net loss.
0 comments:
Post a Comment
Thank You for your comment, keep it up