Nepal looking to become self sufficient

According to industrialists and developers the annual demand for cement in Nepal is about 2.5 million t, but as Pl Sanghai, managing director of Vishwakarma Cements explains, “domestic cement companies meet only 15% of this demand. The remaining 85% arrives as clinker and cement from India”.

Nepal has total limestone reserves of 1 billion t with proven reserves of 210 million t. The abundant reserves mean that the country could not only meet domestic demand, it would be able to export cement. 

New capacity

According to a journalist writing on myrepublica.com, the government-owned companies (Hetuda Cement and Udayapur Cement) produce only 40-50% of their total capacity while privately-owned manufacturers produce 50 – 90% of the total capacity. This is for a variety of reasons, including lack of power, and delays in the supply of other raw materials. The Department of Mine and Geology has permitted companies to operate 26 quarries across the country. Of these, four companies, Butwal Cement, Sagarmatha Cement, Dang Cement and Bhardau Cement are constructing their own clinker lines. Other companies such as Ghorahi Cements are scheduled to start production by July 2011.

Ensuring a positive atmosphere

The total production capacity of the new companies will be approximately 3850 tpd, i.e. 1.155 million tpa. If these companies can operate to their full capacity, they would meet 46.2% of the annual demand in Nepal. There is tremendous potential, but lack of political stability and right sort of business environment has been deterring investment in large-scale cement plants. The Nepalese journalist suggests that if the government can ensure a positive business atmosphere, then Nepal has the potential to emerge as a major cement producer in South Asia.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/04042010/nepal_looking_to_become_self_sufficient_in_cement_sector/