Money generated from sales of Hetauda

The government has decided to invest the money generated from sales of assets of Hetauda Textiles Factory (HTF) in the Industrial Estate Management Limited (IEML) -- a company which manages all the industrial estates in the country.
A meeting of the council of ministers (cabinet) took the decision to this effect.
The government expects to raise a total of Rs 363.64 million from sales of assets of the state-owned textile factory, liquidation process of which began in 2009.
"Of this, a total of Rs 81.22 million will come from sales of building and physical infrastructure. This amount will be invested as share capital in the IEML," reads the cabinet meeting minute.
According to the cabinet decision, another Rs 81.42 million will be generated from sales of plants and machineries.
Of this amount, Rs 11.42 million will be extended as credit to the IEML at 5 percent interest rate.
Similarly, the government has also decided to invest all the amount that comes from sales of 256 ropanis of land belonging to Hetauda Textile in the IEML. Since the land has been valuated at Rs 201 million, all this money will also be injected in the IMEL.
"We have written a letter to the IMEL asking it to submit a proposal on implementing the cabinet decision," said an official at the Ministry of Industry (MoI). "The process to sell land and transfer machinery and plants will begin once the IMEL submits a proposal to the ministry."
The IMEL currently owns a total of 5,128 ropanis of land in different parts of the country such as Balaju, Patan, Hetauda, Dhanusha, Nepalgunj, Pokhara, Butwal, Bhaktapur, Biratnagar, Dhankuta and Saptari.
A total of 11 industrial estates houses more than 600 factories that employ over 11,100 people. Investment of more than Rs 13 billion have been made in these factories.
These industrial estates were primarily set up to make efficient use of available resources and extend better services and facilities to industries set up in the vicinity of one another.
Hetauda Textiles Factory was closed around 12 years ago after it started generating losses continuously due to its failure to compete with imported textiles, mainly from India. The factory used to consume around 1,200 tons of cotton and was employing about 1,200 prior to its closure.