Cement industry shuts down due to lack of clinker

Biratnagar, Dec.31:  13 cement industries of Koshi state are facing an operational crisis due to a lack of own-produced clinker.

13 cement industries out of 15 in Koshi lack their own clinker production.

Other industries produce cement only after grinding by clinker except for Nigale Cement Private Limited Sindhuwa, Dhankuta, and Udayapur Cement Industries Ltd, Jaljale, Udayapur.

Some industries have closed down and some have reached the point of shutting down in line with the high cost of buying clinker.

There are four in Morang, eight in Jhapa, one in Sunsari, one in Udayapur, and one in Dhankuta in Koshi province, of which the production of Nepal Ultratech Cements Pvt ltd Morang and Annapurna Cement in Morang is closed.

According to the Industrialist, three of the eight total factories have completely shut down in Jhapa and the remaining are 25 per cent operational.

According to the president of Koshi State of the Federation of Nepal Industry and Commerce, Koshi, Rajendra Raut, and also the owner of Annapurna Cement Industry, industries operating with large investments have reached the point of closure due to lack of clinker.

The cement industry has reached a stage of closing because the cost of grinding by importing clinker increases making it difficult to compete with others.

On the other hand, the inability of the government to spend capital, the non-payment of loans, and the stoppage of exports of industries that have not received quality marks in India have also become fatal for Nepali cement.

21 cement industries have their own clinker production in the country and are meeting the demands therefore demand of the cement industry operators of the grinding plant has fallen on deaf ears of the government.

Manish Maru, the owner of Ultratech Cement located at Sunsari-Morang Industrial Corridor said the plant of the industry has been closed for 1.5 years.

According to the owner Maru, when the consumption of cement produced by the industry that has its own clinker plant is sufficient therefore the government has not deemed it necessary to issue other issues.

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