BIRGUNJ, May 24: With the quake reconstruction picking up pace in quake-ravaged Nepal of late, production of construction materials within the country too has increased to meet the market demand. With signs of political stability, there has been huge boost in the production, especially in Birgunj Industrial Corridor.
In the corridor, there are 13 cement industries of big and small scale. It also has a similar number of iron industry and half a dozen industries producing corrugated sheets. Likewise, there are about a dozen industries producing plastic pipes, water tanks, paints and other construction materials.
Revised interest rate corridor system introduced
According to stakeholders, as Birgunj Corridor is nearby the main trade point with the southern neighbor India, import of the required raw materials has been easy. Likewise, the central location of the corridor also gives easy access to the markets to sell the products, according to industrialists.
Star Cement Factory Pvt Ltd, Narayani Cement, Jagadamba Cement, Ambe Cement, Nepal Shalimar Cement, Bishawkarma Cement, Shree Cement, Krishna Cement, RMC Cement, International Cement among other cement companies are operational in Bara-Parsa corridor. Newly established Arniko Cement Industry has been a recent addition.
Many cement factories are expanding their capability. For instance, Shuva Shree Jagadamba Cement Mills recently added a new factory and upgraded its 45,000 sacks cement production capacity per day to 80,000 sacks of production capacity a day. Other factories are also busy expanding their operational capacity.
Collectively, the cement factories in the corridor produce around 9,000 tons of cement per day. One such cement factory needs an investment of around Rs 250 million to Rs 60 million. According to the entrepreneurs, investment in cement factory of the corridor alone stands at around Rs 5 billion.
“Factories producing construction materials play a big role in building the country. While the government should prioritize this sector in Birgunj Corridor, very little has been done so far,” said Anil Kumar Agrawal, vice chairman of Birgunj-chapter of Confederation of Nepalese Industries, who is also the managing director of Shree Cement Industries.
