Nepal to ink a Rs 14 billion agreement with a Chinese cement company for investment in its cement industry.
The Investment Board of Nepal is preparing to sign an agreement with a Chinese company to bring in Rs 14 billion (equivalent to around $ 140 million) investments in Nepal’s cement industry, the Online Khabar has reported.
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The government body is preparing to sign the Project Investment Agreement with Huaxin. Earlier, the Department of Mines and Geology had assigned the company to extract clinker, raw material for cement plants, in Panikharka of Dhading district, the report said. The Chinese investor had been working for the permit for last few months. The Board’s spokesperson Uttam Bhakta Wagle said they are engaged in discussions to sign the agreement as soon as possible.
The company will establish its factory in a district of Narayani zone, according to the company. The company has targeted to produce 3,000 tonne cement every day. Around 350 people will be directly employed in the plant whereas other 1,000 persons will get indirect benefits.
The company’s investment proposal was approved around two years ago. However, the process was halted after the Nepali side could not decide on the place of extraction, the Online Khabar report said.
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But now, the government has not only made the decision, but also allowed the company to launch land acquisition process. It needs to acquire 32 hectare land to establish the plant.
Currently, cement factories of Nepal import clinker from India as they do not have sufficient capacity to extract mines on their own.
Nepal has been facing problems in importing clinker from India since last week after the locals from Raxaul — bordering town of Nepal — stopped unloading of the dusty cargoes like clinker and fly ash at the yard of the Raxaul station citing health hazards and the court issued a verdict in favour of them.
Meanwhile, Hongshi Shivam Cement, a company established with Chinese investment, is also beginning the production very soon. The company says it will also produce clinker on its own.