Bhrikuti paper factory in ruins

The Bhrikuti Pulp and Paper Factory, located in Gaida Kot-2 of Nawalparasi (Bardaghat-Susta Purba) has been shut down. After the closure of Palpa Paper Nepal Limited located in Bhrikuti Chok, Nawalparasi the factory has also been closed. With the aim of making Nepal self-reliant in paper production the establishment of the largest paper factory in Nepal was initiated four decades ago. However the factory is now closed and in a dilapidated state.

Ramshwar Kandel a 70-year-old who was involved in running the industry until recently remembers the vibrant activities that used to take place in the factory. He recalls Until around 2065/66 there was more hustle and bustle here than in the Narayangarh market. It was very interesting to see hundreds of workers going in and out working and returning.

Lalit Shrestha the former Plant Manager of the Palpa Plant of Bhrikuti Pulp and Paper Factory believes that proper management is required to revive the factory. He mentions that even though the factory was shut down, the market around it has grown significantly making it difficult to operate the factory effectively.

The location where the factory is situated has transformed from an active industrial hub to a neglected area. Kandel suggests that the place can be repurposed for various service-oriented industries such as technical schools, hospitals, IT parks, and hotels after removing the equipment associated with the paper industry.

At its peak the Bhrikuti Pulp and Paper Factory used to produce around 42 metric tons of paper daily. It fulfilled around 35% of the demand for various types of paper in Nepal. The factory also used to export paper to Japan, including specialized paper products like Palp (used for making money).

Due to various reasons the management decided to shut down the factory fully in 2069 Falgun (February-March 2013). Even though promises were made by political parties, finance ministers and industry ministers to resume operations they were never fulfilled. In 2069 Poush 20 the government finally sold the Bhrikuti Paper Factory to Golcha Organization.

China had initially shown interest in establishing the Bhrikuti Paper Factory with the goal of making Nepal self-reliant in paper production by 2039. However the project was transferred to the Nepalese government by China in 2044 as they couldn’t start operations.

In 2043, production was started by the government. After continuous losses the factory was privatized in 2049.

The Bhrikuti Paper Factory in Gaidakot-2, Nawalparasi which was temporarily shut down after the closure of the Palpali Paper Factory is now facing difficulties due to the closure of the factory. Established with the goal of making Nepal self-reliant in paper production the Bhrikuti Paper Factory was once a significant player in the paper industry of Nepal. However the factory is now in a dilapidated state resembling a deserted and abandoned place like a patient in an ICU.

Rameshwar Kandel a 70-year-old man from the nearby area, recalls the vibrant activity that used to take place around the Bhrikuti Chowk in the past. He says “Until around 2065/66 BS this place was more bustling than Narayangadh Bazaar. It was fascinating to see around 700 to 800 workers heading to work and returning from work in the industry. According to Kandel after the management shut down the industry in 2067 BS the area started losing its vibrancy.

Back when the industry was running this place seemed very attractive for business Kandel says but after the factory closed everything became rusty and old. The machines and equipment deteriorated and the entire place turned into an eerie sight. He describes how the Bhrikuti Paper Factory which was once a thriving industry is now abandoned and decaying.

Lalit Shrestha, the former plant in-charge of the Palpa Plant of the Bhrikuti Paper Factory emphasizes the need for proper management to revive the industry. He states that despite the industry having potential there are no prospects for its operation now. Shrestha comments Even if we want to restart the industry it’s not feasible. The market has expanded significantly.

Shrestha suggests that the abandoned area where the Bhrikuti Paper Factory was located could be repurposed for various service-oriented industries such as technical schools, hospitals, IT parks, and hotels. He points out that the land where the factory used to stand is now overgrown with vegetation and could be turned into a dumping site.

The factory used to produce around 42 metric tons of paper daily until its complete shutdown in 2069 BS. The paper produced by the factory especially the high-grade paper used for currency printing was even exported to countries like Japan.

During its operational days the factory employed around 700 to 800 workers. After its closure the factory workers faced uncertainty and there were disputes regarding their compensation. Even though promises were made by various political parties and ministers, the factory’s operations never fully resumed.

The Bhrikuti Paper Factory’s plight reflects the challenges and complexities faced by the paper industry in Nepal. The closure of such an important industry has had a significant impact on the local economy and employment opportunities.

As of 2053 BS, the Bhrikuti Paper Factory’s property was sold to the Golchha Organization for around 17 crore rupees. The Golchha Group acquired the factory’s land and assets through the Global Tenter Company. Divakar Golchha the representative of the Golchha Group confirmed the purchase of the factory’s property.

However despite the efforts of private entities like the Golchha Group the Bhrikuti Paper Factory’s closure continues to be a reminder of the challenges faced by Nepal’s industrial sector and the need for effective management and revival strategies.