Government Plans to Lease Troubled State-Owned Enterprises to Private Sector
The government plans to revive closed and struggling state-owned enterprises by leasing their operations to private companies after settling their accumulated debts and liabilities.
The government is preparing to hand over the operation of closed and financially troubled state-owned enterprises to the private sector through operational leases.
Under the proposed model, the government would first clear the accumulated debts and liabilities of the enterprises before allowing private companies to operate them. Ownership of public land and other state assets would remain with the government.
Detailed due diligence assessments have already been completed for seven state-owned enterprises, including Gorkharkali Rubber Industry, Hetauda Cement and Udayapur Cement.
Finance Minister Swarnim Wagle said the initiative is intended to revive enterprises that have struggled under government ownership while creating a more competitive operating environment.
The model would allow private-sector expertise and capital to be used to restart potentially viable industries without transferring ownership of public land to private companies.