Government Initiates Process to Reoperate Butwal Spinning Mill
Summary
The government has moved forward with a due diligence audit and asset-liability evaluation to reopen the long-closed Butwal Spinning Mill in Rupandehi. Local industrialists say the factory could revive jobs and boost the regional economy, but they want a clear operating model before the project proceeds.
Key Points
- The government has begun a due diligence audit and asset-liability evaluation for Butwal Spinning Mill Limited as part of plans to restart the long-closed factory.
- A Ministry of Finance technical team is assessing the mill’s building, machinery, production infrastructure, market potential, and reoperation investment needs.
- Local business leaders support reopening the mill but want the government to clarify the operating modality, with some favoring a public-private partnership model.
- The mill has been closed since 2064 after years of management weakness and political interference, and industrialists say it could support jobs, cotton farming, and the textile sector.
