In the long run, the company said it needs a cash injection of Rs 1.99 billion, according to a statement issued by personal press secretary of the finance minister. [break]
The cash-strapped company has said Rs 606 million should be made available immediately, of which Rs 200 million is needed to clear the liabilities of retired staff, Rs 120 million to purchase raw materials, Rs 25 million to renovate machineries, Rs 77.4 million to settle overdue payment on purchase of tobacco, Rs 30 million to clear tax dues, Rs 130 million to clear salaries of staff and Rs 10 million to pay house rent and utility bills.
The demand was placed at a meeting held in the Ministry of Finance. The meeting was attended by the finance minister, finance secretary, an official of the Ministry of Industry, top management officials and board members of JCF, and political party members of Dhanusha district.
During the meeting, Finance Minister Pun said the government was “keen on resuming operation” of the closed factory but added that the government does not have required financial resources. “Of the budget allocated for public enterprises for this year, we only have Rs 80 million left,” the statement quoted Pun as saying.
The government had allocated Rs 770 million for state-owned enterprises this year. Of this, Rs 250 million was consumed by cash-strapped Nepal Oil Corporation and around Rs 80 million went to Nepal Drugs Limited to clear the company´s debt at Nepal Credit and Commerce (NCC) Bank. Few other public enterprises like Gorakhkali Rubber Industry and JCF have also taken sums ranging from Rs 40-50 million from the government his year.
“But this does not mean that the government is not concerned about the cigarette factory´s status,” Pun was quoted as saying. “We are discussion various ways such as leasing the unit, public private partnership model, getting aid from Russia, which helped establish the company, to bring the factory into operation.” He ruled out chances of privatizing the factory.
“Russian envoy to Nepal has expressed keen interest in bringing the factory back into operation and could inject some funds into it,” the minister added.
Against the backdrop, where the government cannot mobilize funds, the company can get the required amount from banks by pawning its property as collateral. “But we need MoI´s approval for that,” the company management said.
Related story
Govt plans to bring Janakpur Cigarette Factory back into operat...
_20191222200001.jpg)
-1200x560-1779450784.webp)
