Indian joint venture Dabur Nepal and a dozen other industries, which suspended operations over the weekend due to Maoist threats, resumed work on Monday as negotiations began between the Maoist-affiliated trade union and an industry body on the problems facing workers.
"Dabur Nepal has resumed its operation as the matter is being settled through dialogue between the representatives of the All Nepal Trade Union Federation (ANTUF) and the BCCI which is still going on," said Kashi Nath, CEO of Dabur Nepal.
"It will take 24 hours to fully resume all production units," he said.
Dabur Nepal closed down all its production units on Friday after the Maoists demanded Nepalese Rs 3 crore (Rs two crore) and also issued threats against its managers.
A dozen other industries in Birgunj, an industrial town of southern Nepal, have also started their operations after the rebel's agreed to sit for dialogue.
ANTUF's chairman Shalikram Jamarkattel was leading the negotiation team while Shushil Mittal, vice-president of the Birgunj Chamber of Commerce and Industries (BCCI) was leading the industrialists' team during the talks.