State-Owned Hetauda Cement Factory Grapples with Financial Crisis Amid Hopes for Revival Under New Leadership

Hetauda. The state-owned Hetauda Cement Industry is currently enduring a fate of opening and closing intermittently. This industry, which recently resumed clinker production after a long closure, is now a victim of extreme financial crisis and disarray.

Employees of this industry, which suffers losses amounting to crores annually, have not received salaries for nine months. However, with the formation of a new government in the country under the leadership of Balendra Shah (Balen), a new hope has emerged among the employees of this industry, which is burdened with a debt of 1.25 billion rupees.

Bhakti Ram Shrestha, Deputy Manager of the industry, states that the industry has been facing an extreme financial crisis for the past 3 or 4 years. According to him, the total liability of the industry has now reached 1.16 billion rupees. Due to a lack of funds, the industry cannot afford to purchase essential raw materials like coal for cement production or spare parts for broken machinery.

The industry, which once thrived with 1100 employees, now has only 136 staff members. Due to the shortage of personnel, some employees are forced to work double or triple shifts.

Employees who retired after spending 40 years in the industry following 2079 BS have had to return home empty-handed, while even the regularly working staff have not seen a salary for nine months. Shrestha mentioned that although a proposal was sent to the ministry seeking a 25 crore loan for immediate operation and a plan to repay old debts, there has been no response from the government.

Another main reason for the industry's continuous losses is its decades-old, worn-out machinery. According to Rubin Majhi, an employee working in the 'Kiln' department, the old machines yield low production, yet the electricity bill reaches up to 37 million rupees per month.

Due to production below capacity, even the operating costs are not being covered. As an alternative, a proposal worth 1.60 billion rupees for installing new and modern machinery was sent to the ministry but has not been heard. Majhi states that the industry cannot survive unless it has a plant capable of producing 2800 to 3000 metric tons.

Amidst extreme despair, a sense of excitement has now permeated the industry. Before the election, during a rally in Chitwan on Falgun 15, Balen had specifically mentioned the Hetauda Cement Industry and announced plans to operate it in a way that would make it known worldwide, like Wai Wai noodles. Now that the government is formed under his leadership, the employees are overjoyed.

Sabin Sharma, working as a geologist in the industry, attributes the industry's downfall to managerial weaknesses and political wrangling, despite having abundant limestone and resources. Sharma believes that now that Balen, who has an engineering background, is leading the government, the industry can easily become profitable if the government shows political will. Deputy Manager Shrestha also appears confident that Balen will fulfill his election promise and create an environment for the industry to operate continuously, selling cement across the country.

Photo: Prakash Chand Timilsina/ Nepal Photo Library