Hetauda Cement Industry resumes production after five-month hiatus

KATHMANDU: After nearly five months of closure due to an acute shortage of electricity, Hetauda Cement Industry has resumed cement production as of today, marking a significant revival for one of Nepal’s oldest industrial enterprises. The state-owned factory, located in Lamsure, Hetauda, restarted operations following the restoration of a stable power supply, a critical requirement for its production process.
Acting General Manager of the industry, Naveen Kumar Karna, confirmed that the resumption was made possible with the availability of electricity, stating, “The industry requires eight megawatts of power daily to crush limestone, a key component in cement production. With the power supply restored, we are back in operation.” The prolonged shutdown had crippled the factory’s ability to meet market demand, but today’s restart signals a return to normalcy.
To ensure uninterrupted production in the immediate term, the industry has stockpiled 1,900 metric tons of coal as a reserve. Karna further revealed plans to procure an additional 4,000 metric tons of coal through a bidding process in the second phase. “We are preparing to bring in the coal via a transparent tender process to sustain operations,” he added, highlighting efforts to secure a steady fuel supply moving forward.
Established in 1976 (V.S. 2033) in Hetauda’s Lamsure area, the Hetauda Cement Industry was officially inaugurated on December 12, 1986 (V.S. 2043, Mangsir 26). Built with an initial investment of NPR 1.5 billion, the factory has long been a cornerstone of Nepal’s industrial landscape. Today, it provides permanent employment to 195 staff across its administration, trade, accounting, storage, technical, and labor divisions, underscoring its role as a vital economic engine in the region.
Despite its capacity to produce 18,000 bags of cement daily, the industry is currently operating at a reduced output of 12,000 bags per day. The gap, attributed to aging infrastructure and resource constraints, remains a challenge as the factory works to regain its full potential. The resumption of production is expected to alleviate some pressure on the domestic cement market, where shortages and price hikes have been felt in recent months due to the industry’s closure.
The restart comes as a relief to both employees and consumers, with the industry now poised to ramp up efforts to meet demand. As Nepal continues to grapple with energy and industrial challenges, the revival of Hetauda Cement Industry stands as a testament to the importance of reliable power infrastructure in sustaining economic growth. With coal procurement underway and electricity supply stabilized, the factory aims to bolster its output in the coming months, reinforcing its legacy as a key player in Nepal’s cement sector.
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