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Ultramodern cement industry to be established with FDI from China

DHADING: A cement industry with the biggest investment and production capacity in the country yet would be operated in Benighat Rorang Rural Municipality-2 of Dhading district.

Chinese investors’ Huaxin Central Asia Investment (Wuhan) Co Ltd would operate Huaxin Cement Narayani Pvt Ltd, the cement industry, at Talti in Mahadevsthan area in the district. The industry would come into operation as per the agreement reached between Nepal and China — to establish a cement industry with the investment of Rs 15 billion — during Prime Minister KP Sharma Oli’s visit to China.

The industry with the capacity to produce 60,000 sacks of cement per day will be constructed by January of 2020, the company stated.  The Huaxin delegate Tulasi Jung Thapa claimed that the ultramodern cement producing company would be the largest in the country to make foreign direct investment (FDI).

He informed that the Chinese company would own 80 per cent of the industry’s share while the remaining 20 per cent would be owned by a Nepali company. Meanwhile, Suraj Vaidya of Vaidya Group of Industries has been delegating the Nepali investors while the Chinese investors are led by Huaxin Central Asia Investment (Wuhan) Co Ltd.

The Investment Board Nepal (IBN) and Chinese company Huaxin Cement Narayani Pvt Ltd reached the agreement to establish a cement industry as per the bilateral agreements reached between Nepal and China to attract the Chinese investors in the country. On behalf of the government, the IBN has approved the foreign investment worth Rs 15 billion.

The industry has set a target to produce 3,000 tonnes of cement in the first phase. It has also been reported that the industry would utilise local raw materials to produce the cement.

The Huaxin company informed that the industry would directly employ about 300 people while 1,000 others would also benefit employment indirectly.

Thapa argued that the cement production through tunnel mining process for the first time in the country would be eco-friendly.

The industry would further assist in the development of physical infrastructure such as road, water supply, electricity in the localities of the industrial area. A road would be constructed along the banks of Malekhu River in Prithvi Highway, from Malekhu up to the industry.

Speaker of the House of Representatives of the federal government, Krishna Bahadur Mahara, is scheduled to lay the foundation stone of the industry on Friday, March 1.

Link - https://thehimalayantimes.com/business/ultramodern-cement-industry-to-be-established-with-fdi-from-china-in-dhading/