Production of Hetauda Cement being halted for 3 months

MAKWANPUR (HETAUDA), JANUARY 16 :  The Hetauda Cement Industry has been facing a severe financial crisis, resulting in a halt in cement production since October 1. The industry initially cited equipment repairs as the reason for the suspension, with an expected resumption by mid-December. However, the repairs remain incomplete, causing an indefinite delay in operations.

“The delay in repairs is only one factor behind the production halt,” said Hareram Acharya, Head of Administration and Spokesperson for Hetauda Cement Industry. “The financial situation is worsening, creating uncertainty about when production can resume.”

Despite the standstill in production, the industry continues to incur ongoing expenses. Salaries, fuel, and maintenance costs are still being paid, further straining the industry’s finances. The plant employs 318 workers, including 166 permanent staff, 100 daily wage earners, and 52 security personnel. Employees are left idle as operations remain suspended.

The industry is also facing severe shortages of key raw materials, such as coal, which are vital for daily operations. “We need at least 120 tons of raw materials and coal daily, but supplies are unavailable,” Acharya explained. He added that pending payments for coal have contributed to delays in new shipments.

Financial troubles have also led to overdue electricity bills. “Our electricity arrears are estimated between Rs 300 million and Rs 400 million,” Acharya said, making it difficult to secure a steady power supply from the Nepal Electricity Authority.

Founded 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 repairs are ongoing, 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 once 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, noted that repairs, including the clinker machine, are still in progress.

“We originally planned to complete repairs by mid-December, but this has taken longer due to the need for specialized workers from India,” Bhandari said. He assured that efforts are underway to speed up the repairs, with a target of resuming production by late January.