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 Mahesh Sah.
The plant had ceased all activities in late November 2024. Sah stated that production resumed despite court orders and resistance from employees. Clinker production is expected to begin after eight hours of continuous machine operation, with a daily production target of approximately 400 metric tons.
Currently, the plant has coal and diesel stocks sufficient for 12 days. If operations continue smoothly, the company plans to sell the produced cement to generate revenue for further procurement of raw materials and to cover operational costs.
Sah mentioned that coordination has been made with the Nepal Electricity Authority, which has assured an uninterrupted power supply despite outstanding dues. He emphasized that the authority has committed not to disrupt electricity to the plant.
However, as preparations for firing were underway, the Lalitpur District Court issued a notice demanding payment of Rs 99.20 million in dues to coal supplier Pioneer Holdings within 15 days. Failure to comply may result in the freezing of the company’s bank accounts. The court instructed that the payment be made from any available company fund.
This is not the first court intervention. 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. Due to increasing legal claims, even this funding has come under strain.
The acting General Manager stressed that the grant was intended for machinery repairs and restarting operations, not for settling old debts. He warned that the plant may become non-operational again if legal pressures persist without government intervention.
Udayapur Cement is a fully state-owned enterprise with a daily production capacity of 800 metric tons of Ghaida Cement and is regarded as one of Asia’s leading 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 and emphasized the importance of cooperation from all levels of government and political stakeholders.
