Ailing Biratnagar Jute Mills (BJM) , Nepal’s oldest, closed down Monday. Management closed down the mill after a financial crunch to purchase raw material.
The factory required more than Rs.10 million every month to purchase jute. The BGM employs nearly 2000 workers.
The factory, run by a local businessman on a lease from the government, has been facing labour problems.
President of the ruling Nepali Congress Party and former Prime Minister Girija Prasad Koirala began his trade union activities from the mill in the late 1940’s.