The Hetauda Cement Industry has been grappling with a severe financial crisis, halting cement production since October 1. The industry cited equipment repairs as the reason for the suspension, initially announcing that production would resume by mid-December. However, the repairs remain incomplete, delaying operations indefinitely.
“The delay in repairs is just one reason for the production halt,” said Hareram Acharya, Head of Administration and Spokesperson for Hetauda Cement Industry. “The financial problems are worsening, creating uncertainty about when production can resume.”
Despite the production standstill, the industry continues to incur regular expenses. Employee salaries, fuel, and maintenance costs persist, further straining its finances. The industry employs 318 workers, including 166 permanent employees, 100 daily wage earners, and 52 security personnel. Employees are left idle as the plant remains inactive.
The industry faces significant shortages of raw materials, including coal, which are critical for daily operations. “We require at least 120 tons of raw materials and coal daily, but supplies are unavailable,” Acharya said. He added that pending payments for coal have delayed new shipments.
Financial issues have also led to overdue electricity tariffs. “Our electricity arrears are estimated to be between Rs 300 million and Rs 400 million,” Acharya noted, making it difficult to request a steady power supply from the Nepal Electricity Authority.
Established in 1976 (2033 BS) and operational since 1986 (2043 BS), the industry relies on aging equipment that is no longer efficient. Technical Head Kameshwor Mandal confirmed that the equipment is being repaired, though the process is slow.
“Most of the repair work is complete, but some tasks remain. Once finished, production can resume,” Mandal said.
The industry briefly resumed production in early September, producing 65,000 bags of cement before halting again. Despite a daily production capacity of 16,000 bags, financial constraints and equipment issues have limited output.
Narendra Bhandari, Chairman of the Industry Management Committee, stated that equipment repairs, including the clinker machine, are ongoing.
“We initially planned to complete repairs by mid-December, but it has taken longer due to the need for specialized workers from India,” Bhandari said. He assured that efforts are underway to expedite repairs and restart production by late January. -- RSS
