BIRGUNJ, Aug 18: The government has formed a task force to study the possibility of reopening the Birgunj Sugar Mill, which has remained closed for the past 27 years.
The task force has been formed under the coordination of Shrikant Yadav, a chief divisional engineer (CDE) at the Ministry of Industry, Commerce and Supplies.
In line with a Cabinet decision, the task force will study the condition of the defunct Birgunj Sugar Mill, previous government decisions, and studies and reports prepared on its possible reopening, as well as identify the steps to be taken going forward.
Four sugar mills yet to clear farmers’ due worth Rs 481 million
The task force includes section officers from the ministry and an official representative from the Department of Industry.
The ministry has given the task force 15 days to complete its study and submit a report. It will assess the current condition of the buildings, factory infrastructure, machinery and spare parts on the premises, as well as their potential for reuse.
The factory was built with assistance from the then-Soviet Union, and its foundation stone was laid by then-King Mahendra in 1962. The factory was established under the Companies Act, 1964.
The factory recorded its highest sugar production in Fiscal Year (FY) 1990/91, producing 202,750 quintals of sugar after processing 2,309,548 quintals of sugarcane purchased from farmers.
However, sugar production fell to 85,000 quintals three years later, in FY 1993/94, when the factory processed only 925,000 quintals of sugarcane.
The government decided to close the factory in February 2000 as part of a plan to privatize it. Following the Cabinet’s decision on Falgun 16 that year, the Birgunj Sugar Mill has remained closed for nearly 27 years.
