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Govt unable to restart Hetauda Textile factory
09 Sep '09
2 min read
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.
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
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