Udayapur Cement Industry Limited has resumed sales of its “Gainda Chhap” cement after a halt of more than three months caused by a shortage of packaging bags.
The fully government-owned cement factory resumed sales after arranging 53,187 cement bags. Around 70,000 bags’ worth of clinker had remained in storage because the industry was unable to package and sell the finished cement.
Acting General Manager Baidyanath Jha said sales were suspended after the available bags ran out in the third week of Baisakh, while the industry lacked the funds required to purchase new supplies.
On the first day after resuming sales, the industry sold 720 bags at Rs 725 per bag, generating Rs 522,000 in revenue. Sales were briefly interrupted by rainfall but resumed later in the day.
The industry had previously purchased packaging bags from Ashirwad Polysacks, Chitwan, but the supplier had stopped deliveries after the cement factory failed to clear outstanding dues of Rs 3.8 million. The industry later reached an agreement with the supplier to obtain additional bags after committing to settle the outstanding amount within a few days.
Administration Division Chief Gambhir Jung Khatri said selling the remaining clinker stock could generate more than Rs 50 million in revenue. The industry is considering using the proceeds to settle outstanding liabilities to suppliers and support the resumption of regular operations.
However, the state-owned industry continues to face serious financial difficulties. Employees have reportedly gone 16 months without receiving salaries and allowances, while required contributions to the Employees’ Provident Fund and Citizen Investment Trust have also not been deposited.
The industry also owes nearly Rs 1 billion in retirement gratuity to former employees and has accumulated substantial electricity liabilities.
Currently, 172 employees and 59 minimum-wage security personnel are working at Udayapur Cement Industry.
The resumption of cement sales provides temporary relief, but the company’s prolonged financial and operational problems highlight the need for a broader restructuring and financial recovery plan to ensure the sustainable operation of the government-owned industry.
