Hetauda Cement Industry Resumes Clinker Production After Two and a Half Months of Inactivity

Hetauda Cement Industry, located in Lamsur of Hetauda Sub-metropolitan City-9, has resumed clinker production after a hiatus of two and a half months. The production halt was due to various challenges, including a shortage of essential raw materials like coal, unsold cement stock, and insufficient funds for machinery repairs.

The industry had been struggling for some time, primarily because of an inability to sell the cement it produced, which led to a lack of funds to procure coal. Currently, the industry has an inventory of about 3,500 sacks of ready cement, according to Narendra Bhandari, Chairman of Hetauda Cement Industry Limited. The industry has resumed operations with a coal stock expected to last around 20 days.

Nabin Kumar Karna, the Deputy General Manager of Hetauda Cement Industry, explained that the lack of sales caused financial difficulties in purchasing coal. He noted that coal for the industry is sourced through tenders from India, Indonesia, and Bhutan. Despite the coal shortage, the greater challenge has been repairing the industry’s over four-decade-old machinery, which has further complicated the production process.

The resumption of production follows a recent visit by a team including Federal Industry Minister Damodar Bhandari and Member of Parliament Mahesh Kumar Bartaula, who inspected the industry’s status. Following their visit, the government is reportedly preparing to allocate a special budget to support the industry’s revival.

Established in 1976 with an investment of Rs 1.38 billion, the Hetauda Cement Industry began commercial production on December 11, 1986. However, the past five years have seen the industry operating at a loss, largely due to increased electricity costs and a decline in the market price of cement.

Chairman Bhandari emphasized the urgent need to replace the aging machinery with modern equipment to remain competitive. He pointed out that the industry's ability to operate continuously depends on the government allocating the necessary funds to compete with private sector cement producers.

The industry has managed to provide salaries and allowances up to mid-July by selling the ready cement in stock. Even during the full shutdown, the monthly expenditure on salaries and allowances was approximately Rs 10 million. At its peak, the Hetauda Cement Industry employed around 1,000 workers, but currently, the workforce has been reduced to about 300 employees, including permanent, temporary, and daily wage workers.