Home / Knowledge / News / Textiles / Govt unable to restart Hetauda Textile factory
Govt unable to restart Hetauda Textile factory
09
Sep '09
Efforts of the Government to restart the operations of closed Hetauda Textile Factory witnessed a setback, as the price quoted by the bidders in the tenders was too high.

Tenders were invited to sell 100 metric tons of cotton to the factory, though there was not any affirmation from the government to restart the factory. Only two bidders took part in the tender process, who quoted higher prices than the government's expectations.

The bidders had quoted Rs. 275 and Rs. 290 for per kilogram of cotton, which was almost three times, the government's expectations. However, they had not specified the quality of the products too.

The government had invited tenders to purchase cotton at about Rs. 100 kg, which is the average value that Cotton Corporation of India (CCI) was offering, informed Mr. Tej Raj Shakya, Joint Secretary at Finance Ministry and Chairman of the factory.

Cotton Development Committee (CDC), a government owned corporation had offered A-class cotton to the factory at Rs. 132 per kg, earlier. But, the factory had rejected the offer mentioning it as expensive.

The government took around 50 days to complete the tender process from its preparation to cancellation.

It is mandatory for any government owned body to follow the Public Procurement Act while purchasing goods. But, the process of this Act takes much time, which makes government unable to operate any factory, said an official of Finance Ministry.

After witnessing losses for several years, the government had closed down the factory in 2001. It had made efforts to sell the factory to the private sector, but it didn't work. Before the closure of factory, its workers were paid their outstanding wages.

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

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


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