Biratnagar, April 30: With the formation of a new government under Balendra Shah, discussions around reopening long-shuttered and struggling state-owned industries have resurfaced, raising fresh hopes among former workers and families tied to the Biratnagar Jute Mill. As Nepal’s first industrial establishment, the mill has long remained a focal point in political discourse, often invoked in promises of industrial revival. However, despite repeated commitments, the ground reality tells a different story.
According to former administrator Taranath Timsina, the current condition of the mill cannot be revived through simple repairs. “The cost of restarting operations may be slightly less than setting up a new industry, but it would still require at least Rs. 1.5 to 2 billion to make it functional and competitive in today’s market,” he said. Even if production were resumed using repaired machinery, it would not meet modern quality standards. Reviving the mill would essentially require replacing machinery and rebuilding infrastructure, an undertaking that entails significant financial risk for the state.
Years of neglect have left the historic industry in a severely dilapidated state. Rusted machinery, crumbling infrastructure, and mounting liabilities, including unpaid dues to former employees and electricity bills, make revival far more challenging than often portrayed. Both plants of the mill, which has remained completely closed for nearly a decade, now house machinery that is largely unusable. Idle for years, the equipment has rusted and effectively turned into scrap. Large parts of the premises resemble overgrown forest areas, with physical structures buried under dense vegetation.
Beyond infrastructure, the shortage of skilled manpower poses another major challenge. Many experienced jute workers have either shifted to other professions or migrated abroad. The younger generation lacks traditional skills in jute production and shows little interest in working in such a deteriorated facility.
Encroachment and security issues have further complicated matters. The mill’s 69 bigha and 10 kattha of land has been significantly encroached upon. While some former employees and their families continue to reside in old quarters, others have occupied the land over the years. In some cases, original occupants have even sold their quarters informally to new settlers. According to Timsina, around 1,200 such families are currently living in the area, creating additional obstacles to reopening the mill.
The mill also faces unresolved labour liabilities. A total of Rs. 30.29 million in unpaid salaries is still owed to 46 contract employees for the period between May 14, 2016 and November 18, 2020. Although the workers have won their cases through labour offices and courts, the payments remain pending.
Established in 1936 during the tenure of then Prime Minister Juddha Shumsher, with the initiative of industrialists Radhakrishna Chamaria and Ramlal Golchha, the Biratnagar Jute Mill once employed up to 7,000 workers and had a daily production capacity of 40 tons of jute. It also served as the epicentre of the historic 1947 labour movement that laid the foundation for Nepal’s democratic struggle.
Today, however, the state-owned mill stands nearly defunct due to years of managerial inefficiency. Although reviving sick industries has not been explicitly included in the new government’s top priorities, hope persists among citizens. While nothing is impossible with strong political will, bringing this decayed industrial giant back to life will be anything but easy. #Nepal
