Two Chinese firms, the Chenhui Minerals Limited and South China Mining Energy Company, which had previously applied to operate one of Nepal's ailing state-owned enterprises, have committed to inject fresh investment worth 2 billion Nepalese rupees (some $20 million) each to run the factory.

Earlier, in the first week of October, these firms applied to Nepal's Industry Ministry for running the Nepal Metal Company Limited (NMCL) by taking all its shares.

Sending a separate detailed proposal to the ministry last Friday, the companies said both of them are ready to put in an additional around $20 million investment to operate the factory after procuring all shares and clearing all liabilities.

"They committed such a huge sum of amount only to operate the factory while it will cost much more for them to procure all shares in the factory and clear all of its liabilities," Chitrangat Baral, an official of the ministry, told Xinhua on Sunday.

Though the ministry had previously said it would decide if to hand over the factory to one of the firms in mid-December, it could not do so after none of them succeeded to furnish the detailed proposal about their plans and future course of action so as to ensure the smooth operation of the factory.

"As these companies seem to be really interested to take over the company, we will make a decision within this week in regards to which among the two be given the factory to run," Baral said, adding that the ministry has already agreed informally to hand over the factory to one of the Chinese companies.

"We are still going through the proposal sent by the Chinese companies. One of them having proper business plan and vision to run the factory in the long term will be awarded with the factory, " NMCL Board Chairman Shankar Aryal told Xinhua.

The Chinese firms will soon be called to negotiate for the price of the factory, he added.

Established in 1976, the NMCL engages in mining, beneficiation and marketing of zinc-lead ores and concentrates.

The company based in Dhading district near Kathmandu however has never gone into full-fledged operation since its establishment because of the decade-long Maoist insurgency in Nepal.

"It's better to hand over the closed company to these interested Chinese firms than letting the expensive machines to rust and we are positive about it," Aryal said.

The government owns a 71 percent stake in NMCL while the Khetan Group of Nepal holds a 13 percent share, with the Hyderabad Industry Limited of India and KK Bamford Company of Hong Kong each taking 6 percent of the company's shares.