Why every single state owned company failed in Nepal? Here we looked upon some of the biggest companies of the country those were pioneers in their time which gradually collapsed and many of them remain as history now.
1 Janakpur Churot Karkhana
Established in 1964, once a leading tobacco manufacturing company completely collapsed and closed in 2013. What a loss for the country. Currently Nepal has huge market for cigarettes which is mainly overtaken by private company Surya Tobacco (Surya Nepal) a subsidy company of Imperial Tobbaco Company of India (ITC). Janakpur Churot were so big that they used to have their own football team that played in highest division.
2 Bhrikuti Kagaj Karkhana, Nawalparasi
The factory situated at Gaidakot Nawalparasi used to produce 70 metric tones of paper daily was completely closed in 2011. It used to have 367 full time staff.
3 Nepal Airlines
Established in 1958, Nepal’s flag carrier experienced good days with flights to Europe and Asia but despite huge potential company is just struggling to survive. Mismanagement and corruption are to blame for downfall of historic airlines which commenced its service in same year with Thai Airways.
4 Gorakhkali Rubber Udhog, Gorakha
Gorkahkkali Rubber Uddyog Limited (GRUL) aimed to manufacture all types of tyres in Nepal and create value for its business associates, consumers and stakeholders but now the state owned company is facing hard time.
5 Himal Cement Factory, Chobhar
While many new cement factories are set up by private sectors Nepal’s first cement factory got closed in 2002 that was was opened in 1978.
6 Gorakhapatra Sansthan
Once Nepal’s leading publication house with the largest selling newspapers and magazines such as Gorakhapatra, The Rising Nepal, Yuwa Manch, Muna, Madhupark is now nowhere to be seen in the market.
7 Bansbari Chhala Jutta, Kathmandu
8 Sajha Yatayat
Thanks to new management who are reviving this old public transportation service of Kathmandu city.
9 Lumbini Sugar Mills, Sunawal Nawalparasi
Like country’s politics, Nepal’s biggest sugar mill factory could not take any direction, a big loss for a nation, thousands of farmers, and hundreds of workers who were employed there.
10 Nepal Railway, Janakpur
Government of Nepal could not handle country’s only 56 km railway line. Bitter reality
11 Hetauda Kapada Udhog
12 Sajha Prakashan
This 51-year-old publication house, considered to be the parent of all Nepali publications lately has annual sales of only Rs 150 million which once witnessed a financial transaction worth Rs 1 billion yearly.
13 Salt Trading Corporation
14 Butwal Dhago Karkhana
60% state owned company that used to produce 7 tonnes of dhago everyday was closed. Established in 1982 with support of Chinese government, the company was Nepal’s first and biggest which used to employ thousands of staff. Ashamed! We could not run it.
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