Jagadamba Spinning Mills of Bhairahawa is planning to produce non-woven fabric used to make bags and sacks. The mill is setting up a new plant for the purpose.

Bishnu Prasad Neupane, Managing Director of Jagadamba Spinning said the production would begin by mid-March, 2011. The plant is being installed with the investment of Rs 140 million. Its capacity will be five tonnes per day, said Neupane. According to him, as the demand in the country is hardly a ton per day, the company is planning to export to India and other countries.

Meanwhile, the company is also planning to expand its capacity to produce polyester yarn from current 27 tonnes a day to 33 tonnes. According to Neupane, Rs 70 million is being invested for the purpose.