Cement producers want to develop basic facilities on their own

KATHMANDU, June 18:

Cement manufacturers have proposed to the government to provide funds directly to them instead of building infrastructures on its own.

The government has introduced a policy of building necessary infrastructures - access road and electricity grid connection - for big industries from the budget from fiscal year 2008/09. But the policy hasn´t been implemented accordingly, according to the cement manufacturers.

Speaking at Republica Roundtable here on Wednesday, Dhruba Thapa, president of Cement Manufacturers´ Association, said the government should act differently to facilitate the big industries. “The government should allow manufacturers to develop necessary infrastructures on their own. It can reimburse the costs later on,” he added.

Thapa also said some industries, which applied for the facility long before, were still to get such facilities. “Contractors are not completing their job in time. It is the usual problem of the government-run projects,” he added.

Officials at the Ministry of Industry (MoI) are positive toward the proposal floated by the cement manufacturers. “The contractors bid at a very low price. But once it wins the contract, it goes out of contact after taking advance payment,” Jeet Bahadur Thapa, joint secretary at the Ministry of Industry, said, adding, “Many construction projects are facing similar problem.”

He also said it would be better for the government to reimburse the fund to manufacturers rather then building infrastructures on its own.

Though the government built access road and arranged electricity grid connection about a year ago, CG Cement of Palpa and Dang Cement of Dang are yet to start operation.

The industry ministry has been getting numerous applications for access road and electricity grid connection facility. “But we have limited budget for the purpose,” Thapa said, adding, “If we adopt the policy or reimbursing cost instead of developing infrastructures on our own, it would be justifiable.”

Thapa also informed that the industry ministry would forward the proposal to the ministry of finance so that it can be introduced through the upcoming budget.

At the program, cement manufacturers have also demanded with the Nepal Bureau of Standard and Metrology (NBSM) to certify grade as per the quality of the cement.

As per the existing provision, NBSM certifies cement of up to 33 Grade only. But manufacturers are producing cement of up to 53 grades, according to Dr Tara Pokharel, general secretary of the Cement Manufacturers Association. “33 Grade cement is not accepted by mega infrastructure projects like road and hydropower. Such projects import 53 Grade OPC cement from India,” he added.

The manufacturers have also demanded that the government change the existing cement standardization system.

Source: Republica