14 cement factories to get access roads

14 cement factories to get access roads

• Rs 1.23 billion earmarked for building access roads and electricity lines

KATHMANDU, JUL 31 -

The government plans to spend Rs 390 million to build access roads for 14 cement factories under its policy of promoting manufacturing industries.

A sum of Rs 1.23 billion has been earmarked for the construction of access roads and electricity transmission lines and sub-stations for cement factories which are under construction in different parts of the country.

Out of the total allotment, Rs 390 million will be spent on building access roads, Rs 360 on connecting the cement factories to power supply and Rs 380 million will be used for the construction of special economic zones.

Industry Secretary Krishna Gyanwali said his ministry had recommended the names of 14 cement factories to receive the facility of access road a week ago.

He added that once the programme is approved by the National Planning Commission (NPC), the ministry will begin work on the access roads which will connect the mines and manufacturing units.  

“Only those cement factories which produce clinker by using local limestone will receive the facility,” said Gyanwali. The government plans to complete construction of access roads for five cement factories within the current fiscal year.

In fiscal 2008-09, the government announced infrastructural support to cement factories utilizing local raw materials with the objective of promoting mega industries.

Under the programme, the government promised to construct roads and drinking water facilities and lay electricity lines to the factory sites stating that it would encourage investors to make use of the country’s huge limestone reserves, thereby saving billions of rupees spent on importing clinker.

Gyanwali said that new companies had also applied for access roads. The five cement factories which will benefit from the facility are Ghorahi Cement, Rolpa Cement, United Cement, Shivam Cement and Nigale Cement.

Other factories had asked for the facility last year, according to the industry secretary. “The applicants could not receive the promised facility in the last fiscal as the government could not announce a full budget, and so it could not release the necessary budget on time,” he said.  

Cement producers have long been urging the government to provide basic infrastructure stating that a huge portion of their investment goes into developing basic facilities.

Meanwhile, the private sector has welcomed the government’s preparation to provide the promised infrastructure facility. “Though the government has not fulfilled its promises several times in the past, we are compelled to trust it this time,” said Atmaram Murarka, president of the Cement Manufacturers’ Association asking the ministry to provide the facilities at the earliest.

Industrialists said that a number of investors had put their money in cement factories in anticipation of government assistance in building basic infrastructure. “The delay in providing the facility has prompted many investors to give up their plans,” added Murarka. He also asked the ministry to provide electricity and transmission line facilities at the earliest. MoI officials said that once the NPC approves the project to build access roads, it will begin doing home work to provide electricity facility to three factories that have been waiting for it since the last fiscal year.

Budget Allocation

Factory    Amount (in millions)

Ghorahi Cement    Rs 60

Rolpa Cement    Rs 50

Sonapur Cement    Rs 50

Dang Cement    Rs 20

CG Cement    Rs 20

United Cement    Rs 20

Laxmi Cement    Rs 10

Bhardeu Cement    Rs 10

Shivam Cement    Rs 25

Makalu Cement    Rs 25

Nigale Cement    Rs 30

Sarbottam Cement    Rs 30

Palpa Cement    Rs 10

Maruti Cement    Rs 30

Total    Rs 390

(Source: Ministry of Industry)