In the first phase of this endeavor being pursued in the form of an Industrial Infrastructure Development Program (IIDP), the Ministry of Industry (MoI) has initiated the process of constructing road links to four large cement factories being set up in Dang, Makawanpur and Udaypur districts.
“Construction of roads up to the manufacturing site of Dang Cement Factory and also to the limestone mines in Dang will start soon,” said Tana Gautam, secretary at MoI, who elaborated that similar constructions were also underway targeting three other cement factories in Dang, Makawanpur and Udaypur districts.
The government has already released Rs 109 million for the road construction, Gautam told myrepublica.com.
The infrastructure support is being extended following demands by promoters of Dang Cement in Dang, Shivam Cement in Makawanpur and two other factories for road connectivity and electricity supply up to the factory sites.
As per their demands, MoI has directed Nepal Electricity Authority to carry out an environmental impact assessment (EIA) survey for laying down the electricity lines. “Laying down the power lines is estimated to cost Rs 3 billion and take three years, as the sites are further away from the national grid. Nevertheless, the survey will be started soon,” said Gautam.
Under IIDP, the government plans to extend all possible infrastructure support to the cement factories being established in Dang, Surkhet, Makawanpur and Udaypur districts, which have huge limestone deposits.
“We have ample deposits to sustain the factories for centuries, but because of our inability to tap these, we are forced to meet some 80 percent of the demand for cement through imports. We want to do away with that situation,” said Gautam.
The government has identified cement, herbs processing, stone quarrying and mining as high priority industries for support under the program, which aims to gear up industrialization and lure private sector investment in rural areas for the sake of balanced growth and development.
Apart from these four districts, MoI has also included hill districts like Jumla in the program to support food processing and the herbal industry.
“We will extend similar support to industries identified by the private sector for high potential and sustainability,” Gautam told myrepublica.com, adding that the program will be expanded to other potential districts as well next year.
For this year, the government has allocated the program a budget of Rs 720 million.
Related story
Closed Hetauda cement industry resumes operation
