KATHMANDU, Feb 4: The state-owned Udayapur Cement Industry has been shut down for three months due to financial turmoil, with all 28 of its bank accounts frozen by court order. The Kathmandu District Court issued the decision following a writ filed by suppliers over unpaid dues.
The industry, once a leader in Nepal’s cement market, has suffered mounting losses for years. Clinker production ceased in November 2023 due to outdated machinery and financial mismanagement, leaving liabilities exceeding Rs 1.5 billion. Employees have not been paid since mid-September, and provident fund payments have been overdue for two years.
Govt accounts frozen nationwide
Despite a government allocation of Rs 160 million for repairs, a key kiln component remains stranded after an accident during transport. Acting GM Mahesh Sah warns that without access to funds, operations cannot resume, further deepening the crisis.
