Economic instability poses threat to Biratnagar Jute Mill
12 Dec '06
1 min read
Biratnagar Jute Mill, which was closed in March 2005 and restarted functioning two months back, is on verge of shutdown once again owing to monetary crisis.
Factory incurs expenditure of Rs6.5 million per month and has 1500 staff members.
Government aid of Rs126.6 million was required by the mill for efficient operations, but just one fourth of this sum had been granted thus bringing closure circumstances, conveyed Mahesh Hamal, Senior Officer.
Mill authorities are facing trouble in purchasing raw materials and paying remuneration to workers because government grant for employees, Dashain bonus, medical and clothing expenses has been completely distributed.
Biratnagar Mill is operated in two shifts. It could be run in three shifts if Government gives the required assistance, which will enable production of over 37 metric tons of jute products and facilitate proper revenue payment.
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