In order to resume operations, Janakpur Cigarette Factory asks AGM to settle financial debts of past two decades – myRepublica
The state-owned company is in the process of resuming operations after shutting down manufacturing for two decades
KATMANDU, December 26: Janakpur Cigarette Factory (JCF), which has stopped manufacturing cigarettes under various brands for more than two decades, has called the Annual General Meeting (AGM) as the government steps up efforts to revive the unit industrial.
By issuing a public notice last week, JCF’s board of directors scheduled the company’s AGM for January 9, 2022. The AGM is to settle the company’s debts for the past two decades from that date. 1999/2000 financial year.
The Ministry of Finance (MoF) recently formed a three-member task force led by MoF co-secretary Chandrakala Poudel to take over operation of the plant. The panel, among others, was tasked with estimating the cost of operating the plant.
Built in 1965 as a gift from the then Soviet Union, the factory was the market leader in cigarettes during its heyday. The company has remained completely closed since 2011 after falling into deep trouble due to political interference, mismanagement and overstaffing. Citing an increasing financial burden, the government of the day decided in 2013 to close the plant.
In several previous attempts, the government has repeatedly stepped up its efforts to resume operation of the plant. A study group formed under the leadership of co-secretary Ramesh Sthapit in 2011 also highlighted the possibility of reviving the factory. This, however, has not been implemented.
According to government records, JCF owns land and buildings in 26 locations across the country, from Biratnagar in the east to Mahendranagar in the far west. The land value of the plant has been estimated at over Rs 8 billion.