The reconstruction of buildings will begin after mid-July as the government has put a ban on construction of new buildings until that time. Demand for construction materials like sand and aggregate, rod, cement, corrugated roofing sheets, and bricks, among others, is expected to jump manifold once the ban is lifted. Many say it would be very difficult for the manufacturers of construction materials to manage supply as no one knows the extent of future demand.Jay Ram Lamichhane, chairman of Federation of Contractors' Association of Nepal (FCAN), said it will be difficult for the manufactures of building materials to meet the demand which is expected to soar to unprecedented level. "Demand for cement and bricks will increase by around 100 percent and 400 percent, respectively," Lamichhane said, adding, "The market is already witnessing shortage of construction materials. We don't know what would be the situation once the government lifts the ban on construction of buildings."
To prevent shortage of construction materials, Lamichhane suggested to the government to do the needful for easing import of construction materials from India and other neighboring countries.
A highly placed official of Ministry of Industry (MoI) also said major construction materials like brick and steel might be in short supply. "If such situation arises, we will provide them some subsidy so that they can jack up production," the official added.
Industry Minister Mahesh Basnet also said that government would provide all possible facilities to the manufactures so that they can operate at full capacity. "As manufacturers have assured us that local production can meet the demand, we are hopeful and optimistic that we might not have to import construction materials," Basnet said. Saying that the situation might change once the government lifts pan on construction of new buildings, he said the government will allow traders to import construction materials from other countries if we feel such materials are in short supply.
Saying that it would be challenging to complete reconstruction works within two years, Minister Basnet said the ministry has requested manufacturers of construction materials to increased production and keep sufficient raw materials in stock. "We will announce tax waiver facility on import of raw materials in case there is shortage of such materials," he added.
The government has announced 15 percent duty waiver on corrugated roofing sheets after realizing that local manufactures won't be able to meet swollen demand for the roofing sheets after the earthquake.
Meanwhile, manufacturers have insisted that they would be able to meet demand in the market. They, however, said the government must create favorable environment so that industries can operate at full capacity round the clock. Dhruba Thapa, president of Nepal Cement Producers' Association, says that government should provide uninterrupted power supply round the clock to industries producing construction materials like cement. "If they get uninterrupted power supply round the clock, cement industries will be able to supply as per the demand," he added.
Tej Bahadur Chand, vice president of Federation of Brick Entrepreneurs, agreed with Thapa. "There is no need to import bricks if local kilns operate at their full capacity," he said, adding, "The government, however, should ensure uninterrupted power supply and help kiln operators to source raw materials easily."
Brick manufacturers have also urged the government to help them repair brick kilns in quake-hit areas.
Some government officials say construction materials won't be in short supply. "More people are showing interest to build prefab houses. This will definitely reduce demand for constructon materials to some extent," he added.
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