Nepal Revives Hetauda Textile Industry After 25 Years
The Nepal government has intensified efforts to revive the long-shuttered Hetauda Textile Industry, signaling a renewed commitment to restoring one of the country’s historic manufacturing assets.
Located within the Hetauda Industrial District in Makwanpur, the textile mill was established in 1975 and began commercial operations in 1978. After serving as a key contributor to Nepal’s textile sector for more than two decades, the facility ceased operations in 2000 due to mounting operational and financial challenges.
Over the years, several attempts were made to restart the industry, but none proved successful. This year, however, government agencies have increased on-site inspections and preparatory activities, indicating stronger momentum toward reopening the facility.
According to officials from Industrial Area Management Limited’s Hetauda office, the textile mill can be brought back into operation with only minor repairs to existing machinery, much of which remains in usable condition. The revival plan also includes restarting associated facilities, including the Butwal yarn factory and a cotton production unit in Nepalgunj, both of which stopped functioning following the closure of the Hetauda plant.
The initiative has received direct attention from Nepal’s Prime Minister’s Office. Minister for Industry, Commerce and Supplies Gauri Kumari Yadav recently visited the site to assess progress, while local government representatives and district authorities have also conducted inspections to evaluate operational readiness.
Speaking in Parliament during discussions on the fiscal year 2083/84 budget, Minister Yadav stated that the government aims to resume operations at the Hetauda Textile Industry within the current year. She described the project as a priority effort and said the facility could become the first of Nepal’s state-owned “sick industries” to return to production.
Security and maintenance conditions at the site have also improved significantly. Since 2018, a battalion of the Armed Police Force has been stationed on the premises, helping transform the area from a neglected site into a secure industrial property. In recent weeks, personnel from the Armed Police Force, Nepal Army, and Nepal Police have jointly undertaken cleaning and maintenance activities as preparations for the industry’s revival continue.
The reopening of Hetauda Textile Industry is expected to support domestic textile production, create employment opportunities, and strengthen Nepal’s broader industrial development agenda.