KATHMANDU, OCT 17: Nepali cement manufacturers have stepped up their efforts to export local cement after the government enforced providing eight percent cash incentives on the export of construction material.
Arghakhanchi Cement exported 2,000 sacks of cement to India on Monday. The company exported two trucks loaded with Nepali brand cement to India.
Pashupati Murarka, director of the company, said they exported the Nepali product to a company in Uttar Pradesh, India. According to him, they exported the cement at the rate of Rs 265 per sack.
Murarka said the cost of production of cement in Nepal is higher compared to those in India. “The export is possible only after the government announcement to provide cash incentives,” he said.
Endorsing working guidelines on Friday, the government has increased the cash incentive to 4 to 8 percent from 3 to 5 percent earlier. If the exported goods have a value addition of over 50 percent or if they secure export earnings of more than Rs 500 million, such goods receive eight percent of the excess amount to their export revenue.