The government is mulling reviving the liquidated Hetauda Textile Factory and letting the country’s security forces operate it.

Industry Minister Nabindra Raj Joshi said that he had conducted several rounds of meetings with the Nepal Army, Nepal Police, Armed Police Force and the Finance Ministry to try resurrect the defunct factory.

The textile mill was shut down one and a half decades ago for posting consistent losses after failing to compete with cheaper imports.

“All three security forces are positive about the idea, and they are ready to inject additional capital to restart operations,” Joshi said Thursday. “We will prepare an action plan within two weeks and work accordingly.”

The ministry has estimated than an initial investment of Rs100 million will be required to get the factory up and running again.

“We are planning to ask each of the three security forces to invest 25 percent of the required capital,” said Joshi. “Most probably they will dip into their welfare fund.”

According to Joshi, the Nepal Army has even assured the ministry of providing technical expertise as it has been producing different types of uniforms for itself.

In the first phase, the ministry has envisaged that the revived factory will manufacture uniforms for the security forces, civil servants and students in government schools.

In the second phase, the factory will start commercial production of garments, according to the plan. “During the second phase, we are also planning to invite private sector investment,” said Joshi.

Hetauda Textile Factory was closed in 2000 after racking up huge losses and subsequently liquidated in 2013. It is owned by Industrial District Management Limited. The factory is spread over 8 acres and possesses machines used in making thread, dyeing and spinning.

According to the ministry, around 40 percent of its equipment are in working condition while 30 percent can be made fit for use after being repaired.

Similarly, the ministry has been planning to revive Butwal Dhago Karkhana and Birgunj Sugar Mills by leasing the defunct entities to the private sector. “We will lease both the factories to the private sector through open competition,” Joshi said.

The government has also moved to restart Gorakhkali Rubber Udyog under the public-private partnership model, according to Minister Joshi. Meanwhile, the ministry has been studying ways to bring Nepal Orind Magnesite back to life.