Kathmandu, December 26
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) investment in Nepal’s cement industry.
The government body is preparing to sing 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 Chinese investor had been working for the permit for last few months.
The Board’s spokesperson Uttam Bhakta Wagle says discussions have begun 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 the place of extraction on time.
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.
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.
