Prime Minister Baburam Bhattarai on Thursday directed the government agencies to create conducive environment for the reopening of closed public enterprises (PEs) in production sector and the utilisation of resources they own.

The PM issued the directive during a meeting that was attended by secretary of Prime Minster's Office, Finance secretary, economic advisor to Prime Minster, chief of Public Enterprise Board, joint secretaries of finance and industry ministries.

"Particularly, the PM directed us to create environment for reopening the Birgunj Sugar Mill," said Khum Raj Punjali, PE coordination division chief at the Finance Ministry.

The PM's directives to the government agencies have come amid mounting pressure from locals, political parties and other stakeholders to reopen the factory that had remained closed for a decade.

Bhattarai had sought to reopen Birgunj Sugar Mill and Hetauda Textile Factory in 2008 when he was finance minister in the first Maoist-led government. But the plan failed to materialise as the successive governments did not prioritise the issue.

Following the PM's instruction, the Finance Ministry issued a press release stating that the government was committed to find a suitable alternative to reopen the factory.  "The Public Enterprise Board will do a homework to find out alternative on re-operating the factory," said Punjali, who is also secretary at the board.

Currently, the stakeholders at local level have intensified pressure on the government to reopen mill by forming 21-member struggle committee, comprising sugarcane farmers, former mill employees and representatives from the civil society, political parties and locals.

District- and village-level struggle committees have also been formed in Parsa and Bara. Over one and a half dozen VDC-level struggle committees have been formed in Parsa and 10 similar panels in Bara. The Factory Operation Committee has also planned to stage protests, including hunger and tranport strikes, later this month.

According to Punjali, the struggle committee has recommended operating the factory under a cooperative model. The government is also willing to settle issue related to former employees of the mill.

Punjali said that the government would settle row with ex-employees in a positive manner although the court passed the verdict against paying compensation to the ex-employees for the period while the factory remained closed.