Revival Dream Fades: Gorkhakali Tyre Industry Assets Top Rs 5 Arba, Yet Remains Shut
Gorkhakali Tyre Industry Stalled
29th November 2025, Kathmandu
The Gorkhakali Tyre Industry, once a vibrant manufacturing hub and a critical employer in mid-western Nepal, remains closed, an unfortunate symbol of lost industrial potential.
Gorkhakali Tyre Industry Stalled
Despite possessing massive assets, including over 560 ropani of land valued at more than Rs 5 Arba in Dang District, the factory has been abandoned since 2015.
This crucial industry previously supplied up to 40 percent of the nation’s tyre demand, providing stable employment and economic activity to local communities who desperately hope for its revival.
The massive land asset and the sheer revival cost now dominate discussions about its future.
The Economic Pillar That Collapsed
The closure of the Gorkhakali Tyre Industry delivered a severe blow to the regional economy. Located in Ghorahi, Dang District, the plant stood as one of the few large-scale industrial employers in the area.
Its operations ensured a steady supply of domestic tyres and, more importantly, a steady stream of income for hundreds of local families. Its failure created an industrial void that regional authorities have struggled to fill.
The industry’s decline stemmed from a combination of chronic issues: Mismanagement: Poor governance and operational decisions consistently hampered productivity and efficiency.
Excessive Staffing: An unsustainable payroll contributed significantly to rising operational losses. 2015 Earthquake: The natural disaster forced a complete halt in operations, which the company failed to recover from.
The formal shutdown in 2018 triggered massive financial liabilities, including employee payouts totaling approximately Rs. 15 Crores.
The Multi-Arba Land Asset and Revival Cost
While the machinery sits ruined and the facilities are overgrown with vegetation, the company still holds considerable financial value in its fixed assets.
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The plant’s enormous land asset, covering over 560 ropani in a prime location in Ghorahi, is now estimated to be worth more than Rs 5 Arba. This value alone highlights the significant potential return for any prospective investor or government-led revival plan.
However, the cost of restarting operations presents a substantial financial hurdle:
Old Technology Restart: Officials estimate that merely restarting production using the outdated bias-ply system would require an investment of around Rs. 20 Crores just for essential repairs and basic operational readiness.
Modernization Imperative: To become competitive in the modern market, which demands superior quality, the factory must shift to advanced radial tyre technology. This modernization project would demand a staggering capital injection of more than Rs. 1 Arba.
The decision for any stakeholder is binary: invest a manageable amount to revive a legacy system with limited future, or invest over a billion rupees to create a state-of-the-art, future-proof facility.
Local Hope and Lost Industrial Potential
The abandoned factory grounds have become a symbol of lost industrial potential. The local population, aware of the economic lifeline the industry once provided, maintains a persistent hope for its revival.
They actively campaign for government intervention or private sector interest to resuscitate the facility. The case of the Gorkhakali Tyre Industry serves as a stark reminder of the challenges facing large-scale manufacturing in Nepal.
Successful revival would not only recapture the lost industrial potential but also create a ripple effect, boosting employment, reducing import reliance for tyres, and injecting much-needed dynamism into the economy of mid-western Nepal.
The sheer magnitude of the land asset makes the industry’s physical recovery a priority for regional planners, even as the high revival cost forces caution.
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