UDAYAPUR, April 24: After nearly six months of complete shutdown, the Udayapur Cement Industry resumed operations on Thursday morning despite ongoing legal disputes and internal administrative obstructions. The plant began kiln firing at 10:40 am, with machinery now in operation, according to acting General Manager (GM) Mahesh Sah.
The plant ceased all activities in late November 2024. Sah said production resumed despite court orders and resistance from employees. Clinker production is expected to begin after eight hours of continuous machine operation. The plant aims to produce approximately 400 metric tons of clinker daily.
Currently, coal and diesel stocks are expected to last 12 days. If operations continue smoothly, the company plans to sell the produced cement to generate revenue for further raw material procurement and operational costs.
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Sah noted that coordination has been made with the Nepal Electricity Authority (NEA), which has assured uninterrupted power supply despite outstanding dues. He emphasized that the authority has committed not to disrupt electricity to the plant.
However, just as preparations for firing were underway, the Lalitpur District Court sent a notice demanding payment of Rs 99.20 million in dues to a coal supplier, Pioneer Holdings, within 15 days. Failure to comply may lead to freezing of the company’s bank accounts. The court has instructed payment from any available company fund—general, capital, or otherwise.
This is not the first time the court has intervened. Earlier, nearly Rs 9.7 million was paid following another supplier's court order. The factory had previously received Rs 160 million in capital grant under the administration of the then Prime Minister Pushpa Kamal Dahal to revive operations. However, due to increasing legal claims, even this funding has come under strain.
The Acting GM stressed that the recent Rs 160 million grant was intended for machinery repairs and restarting operations—not to settle previous debts. He warned that the plant risks becoming non-operational again if legal pressures persist without government intervention.
Udayapur Cement, a fully state-owned enterprise, has a daily production capacity of 800 metric tons of Ghaida Cement and is regarded as one of Asia’s top producers in its category.
Chief District Officer Prem Prasad Luintel expressed concern over the plant’s prolonged closure, calling it unfortunate for a government-owned enterprise. He urged immediate action by the federal government to ensure uninterrupted operations, highlighting the importance of cooperation from all tiers of government and political stakeholders.
