Hetauda, Feb 16: The Hetauda Cement Industry, a state run entity, has been facing a deepening financial crisis as production remains halted for an extended period. This uncertainty has raised concerns about the future of cement production at the state-owned industry.
The factory’s management suspended production on October 1, 2024, citing the need for equipment repairs. While production was initially expected to resume in November, ongoing maintenance delays and financial difficulties have prevented operations from restarting, according to industry officials.
Industry spokesperson Hare Ram Acharya stated that while equipment maintenance is a key issue, financial constraints are the primary reason for the delay. Despite production being halted, the company continues to incur regular expenses, including salaries, fuel, and minor maintenance costs, he said.
The factory requires at least 120 tons of coal daily for production. However, with outstanding payments to coal suppliers, securing new shipments has become increasingly difficult. The industry has also failed to compensate employees for overtime work.
Established in 2033 BS and beginning cement production in 2043 BS, the Hetauda Cement Industry now struggles with aging equipment. According to technical chief Kameshwar Mandal, the worn-out machinery has made it difficult to achieve optimal production levels.
“The equipment is old and deteriorating, limiting our ability to produce cement efficiently,” Mandal explained. “We are working on repairs, and most of the mechanical work is complete. Only a few tasks remain, and once finished, production can resume.”
In August-September 2024, the factory briefly resumed operations, producing 65,000 bags of cement. However, despite having the capacity to produce 16,000 bags daily, financial issues have brought the industry to a standstill once again.
The worsening situation at Hetauda Cement Industry raises concerns over Nepal’s domestic cement supply and the sustainability of state-run enterprises struggling with outdated infrastructure and financial instability. The government itself looks not serious to smooth operation of this cement factory.
Government of Nepal is running two big cement industries, Udayapur Cement Industry and Hetauda Cement Industry. Like Hetauda, Udayapur Cement Industry is also facing same issues. Even, political intervention, labour issues and appointment of head of the factories have marred the smooth functioning of the factories.
Meanwhile the government has formulated a high level task force to study the situation of these state run entities and suggest for privatization. #nepal #cement
