Hetauda Cement Industry to Resume Production in January After Prolonged Downtime

Hetauda Cement Industry, a government-owned enterprise, has announced plans to resume cement production in the first week of January. This comes after prolonged downtime due to equipment maintenance and financial constraints, which halted production since mid-October.

Initially, the management had targeted November for the production restart. However, delays in repairing critical machinery, including the clinker machine, pushed the timeline further. Narendra Bhandari, Chairman of the Industry Management Committee, stated, “We had anticipated completing the repairs by Tihar, but unforeseen delays have extended the maintenance schedule. The repair work is progressing rapidly, and we expect to resume production soon.”

One of the significant challenges has been sourcing skilled labor from India for the repair work, which contributed to the delays. Despite these hurdles, the management has assured that preparations for production are in the final stages. Notably, the availability of raw materials such as coal is not a concern, with the industry holding a stockpile of 400 metric tons and additional procurement processes underway.

The industry faced a two-month shutdown earlier this year due to financial constraints but managed to produce 65,000 bags of cement after briefly resuming operations in mid-September. This highlights the enterprise's operational vulnerabilities, as it struggles to maintain a consistent production cycle despite being one of Nepal's oldest cement manufacturers, established in 1976 and operational since 1986.

The delays in resuming production underscore systemic challenges faced by Nepal's state-owned industries, such as reliance on foreign expertise for maintenance and financial instability. The ability to address these issues is critical for the sustainability of such enterprises. Additionally, the upcoming resumption of operations is a significant development for Nepal’s construction sector, which heavily depends on local cement manufacturers for affordable supply.

The success of Hetauda Cement Industry in overcoming these operational and financial challenges will serve as a benchmark for other state-run industries grappling with similar issues.