Cabinet decides to reopen three PEs

The cabinet today decided to reopen at least three public enterprises (PEs) — Birgunj Sugar Mill, Agriculture Tools Factory, and Butwal Dhago Udhyog — immediately.

The government has also directed the Public Enterprises Directorate Board (PEDB) to prioritise the operation of these three public entities, according to the Finance Ministry.

The cabinet has decided to put these three enterprises under the Ministry of Industry, said joint secretary at the finance ministry Khum Raj Punjali, adding that the cabinet has asked Public Enterprises Directorate Board to look for the best model to run them.

The government has decided that it will not fully invest in any public enterprises, he said, adding that all sides have agreed that the public enterprises must be run either through private investment or through the Public Private Partnership model.

The board has been preparing a separate report to develop a modality to start the operations of closed public entities, said chairman of the board Bimal Wagle, adding that Public Enterprises Directorate Board will now accelerate the pace of locating the most appropriate modality.

The government had decided to close down these three public enterprises after they incurred massive loss due to inefficiency and corruption.

It had decided to dissolve the state-owned Birgunj Sugar Mill in 2007 citing lack of profit. Due to its closure, farmers of Parsa district have been forced to take their sugarcane – which amounts to 50,000 metric tonnes – for crushing to nearby districts.

Similarly, Butwal Dhago Udhyog has been closed since 2010 after the then government decided to give compulsory retirement to its employees. Further, the government had decided to liquidate Agriculture Tools Factory in March 2003 by publishing a gazette notification.

Meanwhile, a team comprising of chairman of Public Enterprises Directorate Board will start a visit to Parsa district from tomorrow. "The team will discuss the possibility of operating Birgunj Sugar Mill and ask locals to suggest a model to run it again," Wagle added.