Prakash Kafle/Kathmandu.
The re-operation of the Hetauda Textile Industry is not just about reopening an industrial unit; it is also a major symbol of Nepal’s industrial revival and self-reliance. The discussion about whether the current government’s plan to restart the Hetauda Textile Industry is feasible, and if established, whether it can remain sustainable, presents a complex picture.
1. Past decline and current condition
Established in 2032 BS with assistance from the Government of China, the industry once met a significant share of Nepal’s cloth demand. However, it was shut down in 2056 BS and officially liquidated in 2059 BS due to several serious reasons:
• Technology gap: While the global market adopted shuttle-less and computerized machines, Hetauda continued using outdated equipment, increasing production costs.
• Political recruitment hub: Instead of a professional industrial setup, it became a center for political appointments, reducing productivity and increasing losses.
• Market liberalization: After economic liberalization, cheap imports from China and India dominated the Nepali market, and the industry failed to compete.
2. Strong possibilities for revival
Although the industry is currently inactive, there are solid grounds for its revival:
• Nepal Army model: The Nepali Army has proposed an investment of around NPR 2 billion. Since the army, police, and armed forces are major consumers of uniforms, a guaranteed market already exists.
• Improved electricity supply: Unlike the past, Nepal now has stable electricity, reducing operational difficulties.
• Existing infrastructure advantage: The 166 ropani land and existing physical structures within the Hetauda Industrial Area are worth billions, making it a major asset compared to starting a new industry.
3. Key challenges in implementation
Despite the potential, challenges remain significant:
• Technical restructuring: Old machinery is obsolete and must be fully replaced with modern technology, requiring large-scale investment.
• Raw material dependency: Cotton and yarn still need to be imported, which may keep production costs high unless domestic cotton farming is promoted.
• Policy delays: Although the industry is often mentioned in national budgets, there is no consensus on its operational model (government, private, or PPP).
4. The way forward
To turn this “medium possibility” into a “highly feasible project,” the following steps are necessary:
• Integrated market policy: The government must ensure procurement of uniforms for schools, security forces, and public institutions from Hetauda.
• Professional management: It should be operated as an independent corporate entity rather than a bureaucratic unit, with a CEO appointed based on performance.
• Foreign partnership: Joint ventures with international textile companies could help improve technology and global competitiveness.
Conclusion
Reopening the Hetauda Textile Industry is economically risky but essential for national pride and employment generation. If the government moves beyond traditional approaches and ensures modern technology and a guaranteed market, the industry can once again become a backbone of Nepal’s industrial sector.
Main takeaway: Politically it is “possible,” but in terms of machines, market competition, and execution, it is “challenging.”
हेटौंडा कपडा उद्योग पुनः सञ्चालन: सम्भावना, चुनौती र भविष्यको विश्लेषण
