It was established under Prime Minister Juddha Shamsher Rana in 1936 A.D.[1] The mill was initially run by the Government but later handed over to a private company for operation.
However, the company failed to run the factory due to political intervention and labour problems.
The private company instead of running the factory, tried to sell the land of the mill in 2017 which was halted by government.
The Supreme Court ruled in behalf of the private company but the actual sell did not occur.
The Nepali congress held a conference in Jogbani, India and resolved to initiate a nationwide Satyagraha, or civil disobedience movement.