The jute mill, which has resumed its operation after being taken over on lease by Kolkata-based Winsome International, has filed an application at the Department of Industry (DoI) asking for registration and certification as the country’s first industry.

Based on the application, the DoI has prepared a proposal to register the industry at the first position of the registration list. The proposal will be taken to the Industrial Promotion Board. And once it is endorsed, the industry will legally be Nepal’s first industry.

Established in 1937, Biratnagar Jute Mill was the country’s first production plant. The government handed it over to Arihant Multi-fibre of Golchha Organisation in 2002. However, the company failed to run the factory properly due to political intervention and labour problems. Consequently, the government shut down the factory after spending Rs 550 million to pay off its 2,000 employees.

According to a DoI source, the industry was approved for operation by the then Development Board. Since it was operating as a government entity, it was enjoying several benefits in terms of imports and exports of machineries, raw materials and products.

However, after Winsome took it over, the private sector management needed a formal registration. “While it was a government entity, the management did not realise the need for registration. But since it is being handled by a private company now, they have filled for the application,” the source said.

Winsome has filled applications at the DoI and Ministry of Industry (MoI), stating the industry should be given the registration certificate and placed at the top of the registration list based on the certificate provided by the then Development Board, memorandum of article, article of association and income tax registration, the source said.

Initially, the DoI was unwilling to do so due to the lack of clarity on several issues. But it agreed after by the Ministry of Industry’s intervention, which asked the DoI to register the Jute mill at the top spot. The MoI was of the view that based on the documents submitted, it should be provided the title of Nepal’s first industry.

The DoI has new prepared a proposal that will be endorsed by the promotion board. “There was no clarity on many issues. For example, as the jute mill is still a government property, application from Winsome itself is contradictory.”