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Government steps in to support cement production in Nepal

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World Cement,

The Ministry of Industry in Nepal will reportedly expand road access to 11 cement plants and supply electricity to eight cement plants to facilitate improved operability. This follows a government policy launched in FY08/09 in which it promised to build the necessary infrastructure to accommodate big industries. Some Rs.300 million has been set aside for the road project and Rs.550 million for electricity grid connection.

Jeet Bahadur Thapa, Joint Secretary of the MoI, told press that access from the cement plants to their limestone quarries would be improved, as well as to iron ore reserves. The work is based on proposals received in the last fiscal year and is only available for those cement plants using local limestone. Cement companies have reportedly complained that the government has been slow to act and that the allocated resources are insufficient.

The following companies will benefit from electricity grid connection:

  • Dang Cement (Dang)
  • Laxmi Cement (Matatirtha, Kathmandu).
  • Ghorahi Cement (Lamahi, Dang).
  • United Cement (Matatirtha, Kathmandu).
  • Maruti Cement (Mirchaiya, Siraha).
  • Rolpa Cement (Tulsipur, Dang).
  • Cosmos Cement (Dhalkebar, Dhanusa).
  • Subha Shree Jagadamba Cement (Dang).

The following companies have been allocated for access road works:

  • Ghorahi Cement (Dang)
  • Rolpa Cement (Dang)
  • Sonapur Cement (Dang)
  • United Cement (Matatirtha)
  • Kepy Cement (Dhading)
  • igale Cement (Dhankuta)
  • Sarbottam Cement (Nawalparasi)
  • Butwal Cement (Butwal)
  • Palpa Cement (Palpa)
  • Cosmos Cement (Dhanusa)
  • Subha Shree Jagadamba Cement (Dang)

Jaiprakash Associates and Shree Cements transaction

Over the border in India, the competition commission has reportedly approved the sale of Jaiprakash Associates’ Haryana cement plant to Shree Cements. The CCI found no cause for concern in the acquisition, saying it was unlikely to have an adverse effect on competition.

Edited from various sources by


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