Visits reopen talks to rescue bankrupt Gorakhkali Rubber Industry
Summarized and contextualized by DistantNews.
At a glance
- Government inspections of the Gorakhkali Rubber Industry have not yet yielded a concrete plan to restart the factory, which has been shut since March 2015.
- A recent inspection, led by a parliamentary subcommittee and attended by officials from the Finance and Industry ministries, aimed to study possible operating models for the state-owned plant.
- Residents and lawmakers are urging the government to clarify whether it plans to operate the factory, privatize it, or hand it over to another institution, emphasizing the need for a decision to revive the local economy and create jobs.
Years of neglect have left the Gorakhkali Rubber Industry factory in a deteriorating state, with its machinery, buildings, and infrastructure in disrepair since its closure in March 2015. Despite repeated government inspections, a clear plan to restart the long-shuttered, state-owned plant remains elusive.
Everyone would be happy to see the factory reopen, but the government needs to say how it plans to run it. Will the government operate it, privatize it or hand it over to another institution? That needs to be clear.
On Sunday, another inspection took place, with a subcommittee under the Public Assets Management Committee leading the effort. Federal lawmaker Kabindra Burlakoti, who visited the factory for the third time since his election, was joined by fellow lawmaker Sushil Khadka and officials from the Ministry of Finance and the Ministry of Industry, Commerce and Supplies. Residents present urged the team to settle on a definitive operating model, questioning whether the government intends to run the factory itself, privatize it, or transfer it to another entity.
It would be better to start with the technology already in place and upgrade it over time. If the factory reopens, the younger generation will have jobs and local farmers will have an easier market for even small amounts of vegetables and milk. The local economy will become more active. We just need a decision on how to move forward.
Local residents expressed frustration with the repeated inspections that have not led to a decision. Pratap Bhandari of Gorkha Municipality-13 stated, "Everyone would be happy to see the factory reopen, but the government needs to say how it plans to run it." Ishwor Pariyar suggested resuming production with existing technology and gradually upgrading, highlighting the potential for jobs for the younger generation and a more active local economy.
We came for a field inspection because the government needs a report from the ground before deciding on an operating model. There is no reason why this factory cannot be brought back into operation. The due diligence assessment also concluded that it can be operated.
Subcommittee coordinator Sushil Khadka noted that Gorakhkali Tyre is a priority among 38 public enterprises being studied nationwide. He confirmed that a due diligence assessment found the factory viable for operation and that the government is now exploring a more efficient operating model. "Gorakhkali Tyre is a project of national pride," Khadka said, expressing confidence in its revival. Burlakoti acknowledged the site's deterioration but anticipated a decision on an operating model within a few months, with immediate attention to cleaning and repairs.
Gorakhkali Tyre is a project of national pride. We grew up hearing about Gorakhkali Tyre, and everyone wants to hear that name again.
Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.