Home / Knowledge / News / Textiles / Govt unable to restart Hetauda Textile factory
Govt unable to restart Hetauda Textile factory
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

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Pranav Mishra

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search