Home / Knowledge / News / Textiles / Taskforce recommends shutting down two mills
Taskforce recommends shutting down two mills
Mar '09
A task force was set up last month to suggest and recommend measures on whether to resume operations of the closed Butwal Spinning Mills and Biratnagar Jute Mills, to which the task force has opined to shutting them down completely as one of the first options.

The government has a 56 percent stake in Butwal Mills and 47 percent in Biratnagar Jute Mills, which have closed down since the last few months and the Biratnagar Mill used to employ around 3,500 workers not so long ago.

The task force has advised to lay-off workers temporarily, till a final decision on the matter of revival is taken by the government. Biratnagar Mills has already laid-off half its employee strength by paying them fifty percent of their salaries.

The task force advised closure, as the mills are saddled with very old machinery and carry very high operational and labour costs, leading to losing their competitiveness. An average Nepali jute worker earns Rs 190 per day compared to an Indian worker earning Rs 125 per day.
The government will have to spend Rs 720 million to revamp and restart the two mills and alternatively Rs 830 million if they are taken in to liquidation, to pay all pending salaries, benefits and outstanding of the two mills, added the members of the task force

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Deepak Jain

We are using Facebook and Instagram to promote ourselves

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search