Hetauda, Jan. 12: Hetauda Textile Mill is reported to be facing a serious financial constraint and has remained closed for the past few weeks for its failure to buy its much needed raw material– cotton.

The mill management says it requires 1200 metric tons of cotton a year and the present crisis is precipitated by the shortage of cotton.

It may be noted that Nepal Industrial Development Corporation (NIDC), Kathmandu, provided a grant assistance of Rs 90 million to the mill on the recommendation of HMG two years back, thus helping it to resume operation immediately.

Located in Hetauda Industrial District (HID), the mill is running into a serious financial trouble and about 1200 of its staff, technical hand, and labourers are still not getting their five months’ pay and allowances.

They are now resorting to a phase-wise move, demanding payment of salary and allowances. Their move aims to draw the attention of the government, NIDC, the Ministry of Industry and the Ministry of Supplies to the plight of the industry as well as to the need to operate it in a more planned manner.

The Mill All-Labour Action Committee has staged a strike Thursday at the mill, urging a 3-day token strike at other factories of the industrial district, according to the District Administration.

The mill management is reported to be holding talks with high officials of the ministry of supplies and the Ministry of Industry and other units in that connection.

The mill needs a loan assistance of about Rs 320 million to get it out of the present crisis, it is learnt.

Built with the assistance of the Chinese government, the mill was handed over to His Majesty’s Government 22 years ago. Its textile products are reported to be stockpiling in its warehouse for failing to compete in the local market.