Govt shows interest to resume operation of Birgunj Sugar Mills

A government team has started conducting study to ascertain the viability of resuming operation of now-defunct state-owned Birgunj Sugar Mills (BSM). The government is mulling over resuming the operation of BSM to boost production of sugar, amidst increasing shortage of the commodity in the domestic market. A taskforce led by Rishi Koirala, a joint secretary at the Ministry of Industry (MoI), has already held discussions with the board of directors and employees of the ailing sugar factory in this regard, according to officials of the Ministry of Finance. BSM Chairman Raj Kumar Singh said the Public Enterprises Board has also asked the taskforce to formulate a guideline on handing over the management of the ailing factory to the private sector. “The government has given us a mandate of formulating guidelines and putting forth recommendations on perks and benefits for 193 employees who are still with BSM,” said Singh. Baburam Adhikari, member secretary of the taskforce, said the taskforce has already started collecting detailed information on the factory. “Formulation of Information Memorandum (IM) is important before finalizing the guideline on handing over of the management to a private operator,” said Adhikari, who is also under secretary at the MoI. Chairman Singh claimed that there would not be scarcity of raw material, like sugarcane, for the factory and there was ample market for sugar produced by the mill. According to a study conducted by the Sugarcane and Sugar Development Board under the aegis of the government, country´s annual sugar consumption stands at 180,000 tons. Of this, around 153,000 tons were produced in the country this year. The then Finance Minister Dr Baburam Bhattarai had constituted the BSM board in a bid to give new lease of life to the ailing state-owned sugar industry some four years ago. The government had decided to liquidate BSM around a decade ago by extending voluntary retirement scheme for 725 employees. However, 193 staff had not accepted the severance package offered by BSM.