Nepal moving towards self-reliance on clinker

BHAIRAWAHA, FEB 15 -

Local cement factories are increasingly using their self-produced clinker for cement production.

Until a couple of years ago, three cement industries — Siddhartha, Bridge and Supreme — based in the Lumbini Industrial Corridor used to rely on clinker imported from India. Now, they produce more than 90 percent of clinker they require.

This shows the country is slowly moving towards self reliance on clinker, the major raw material for cement production.

Argakhachi Cement, set up with an investment of around Rs 2 billion in the industrial corridor, has already started clinker production. “There are a lot of hassles while importing clinker from India,” said Rajesh Agrawal, managing director of Argakhachi Cement. “Another factor that motivated us to produce clinker ourselves is enough limestone quarries in the country.”

Agrawal says due to the high potential, investors are investing in clinker production. Argakhachi Cement, which currently produces 1,000 tonnes of clinker a day, is all set to increase its production capacity by an additional 400 tonnes a day in the next four months.

Other clinker producers include government-owned Hetauda Cement and Udayapur Cement, and the private sector’s Maruti Cement, Shivam Cement, Arghakhachi Cement, Gohari Cement and Sonapur Cement.

With the setting up of more clinker producing cement factories , import of the raw material from India has declined, according Bidur Dhungana, manager at Jagadamba Cement. “Earlier, 12 freight train bogies of clinker used to be imported every three months,” said Dhungana, adding the import has come down to one bogie in three months.

According to cement producers, the country requires around 3 million tonnes of clinker annually. Of the total demand, 18 percent is fulfilled by domestic supply.

With huge demand, more domestic cement producers are getting into clinker production. Sarbottam Cement, promoted by Saurav Group, and another cement factory of Dugar Group are also planning to start clinker production.

“If the industrial environment is improved, clinker import will not be required within the next three years,” Agrawal said. “It will save Rs 36 billion annually.”

In a bid to make the country self reliant on clinker, the government recently decided to ban the clinker import after five years. According to the Industrial Promotion Board, domestic cement producers should either produce clinker on their own or manufacture cement by using clinker produced by local manufacturers after the imposition of the ban.

Source: The Kathmandu Post