Proposal for a paper factory in Gorkha

Title page

                         PROPOSAL

ESTABLISHMENT OF A PAPER FACTORY IN BARPAK AREA, GORKHA
DISTRICT

Submitted to:
The Chief Executive
Gorkha Rural Industrial Development Board, Gorkha

Submitted by:
Gorkha Lokta Paper Entrepreneurs Group
Barpak, Gorkha

20 November 2026

Abstract

The hills of Gorkha have rich forests of lokta and allo, the raw materials of handmade paper, but most of this material is sold raw or left unused. Jobs are scarce, and many young people have left for the cities or gone abroad. This proposal presents a plan to set up a small handmade paper factory in Barpak, with a capacity of 400 kg a day, to produce lokta paper and paper products for export and tourist markets. The plant needs 15 ropanis of land, a building, pulping and drying equipment and a small water supply. The investment is Rs. 1.1 crore, and the factory will employ 40 local people. The project is expected to recover its investment in about four years.

Statement of the problem

• The raw material is available but is not processed locally, so the villagers earn little from it.
• The area has few jobs, which forces young people to migrate.
• The roads are poor, so transporting heavy goods is costly. A light product such as paper solves this problem.
• There is no skill training or marketing channel for handmade paper.

Objectives

1. To set up a handmade paper factory in Barpak.
2. To create jobs for at least 40 local people, especially women.
3. To increase the income of lokta collectors by offering a fixed price.
4. To export quality paper products.
5. To protect the forest by using lokta in a sustainable manner.

Conclusion

Setting up a paper factory in Barpak will convert local resources into valuable goods, create jobs and reduce migration. The technology is simple, the product is light and demand is stable. We request the Board to grant the loan, land lease and training support so that the factory can start production within 12 months.