Biratnagar Jute Mill resumes operation

The oldest mill of the country – Biratnagar Jute Mill – has resumed its operation from today after remaining closed for the last four years.

The government has leased out the factory to Winsome International from India for the next 25 years on Rs 13.5 million annual charges.

Winsome International invested Rs 100 million to resume its operation. In the preliminary phase, the factory will produce around 14 tonnes of jute products every day.

Biratnagar Jute Mill’s manage Shyam Poudel said, adding that the mill has a capacity to produce 30 tonnes of jute per day. “The mill is operating the machines only for two shifts a day currently as they are under maintenance.”
The factory currently employs 500 but more manpower will be hired to operate the mill at its full capacity.

Established in 1937 Biratnagar Jute Mill was earlier handed over to Arihant Multi-Fibre of Golchha Organisation in 2002 by the government. But Arihant Multi-Fibre failed to run the factory due to political bickering and labour troubles.

The government had shut down the mill and paid off Rs 550 million to its 2,000 employees.

There is a huge potential for jute products exports to India. According to the central bank’s data, the country has exported Rs 4.10 billion worth jute goods, including Rs 3.67 billion jute sackings, in the last fiscal year 2012-13, Rs 0.04 billion more than a fiscal year ago’s Rs 4.06 billion worth jute goods to India. Along with Biratnagar Jute Mill, there are nine other jute mills in Eastern Nepal.