Reopening Udayapur Cement Factory possible only thru collective efforts: Dr. Mahat

Kathmandu, Dec. 20

Finance Minister Dr. Prakash Sharan Mahat said that the reopening of the Udayapur Cement Factory could be possible only through the collective efforts of the concerned stakeholders.

While inspecting the mines used by the industry on Wednesday, he said that the subsidy of the government could not be the solution to the sick industries, informed the Ministry of Finance in a statement.

The management of such establishments should be improved, and the workers should understand their responsibility, said Dr. Mahat, adding that evaluation and assessment should be conducted to find out who did not fulfil their responsibilities and the situation that led to the deterioration of the industry.

"Many industries operate in the private sector. There are more than five dozen private sector cement industries. The workers complained that they were facing indifferences from the management and the government," said FM Dr. Mahat, "Private sector buys land, builds industries, buys machines with loans and operates them, and earns profits even after paying all operating expenses."

The Udayapur Cement Factory was established with the support of Rs. 440 million from the Japanese government. The government has invested Rs. 1 billion. However the company has failed to manage the operating expenses despite a good demand for its products. It has a liability of Rs. 750 million.

According to Dr. Mahat, the current condition of the industry is the cumulative result of the government appointing managers who have poor knowledge of the industry, lack professionalism, and workers' poor performance.

Stating that the crisis was not the result of the COVID-19 pandemic and it began much before than that, the Finance Minister said that no one can escape from their responsibilities. "We did not have the mindset that we should protect the public property by giving it more importance. This is why the public sector has not been successful in Nepal," he said.

He maintained that although the participation of the government in the industry was not necessary, it invested in the sector to make the private sector competitive and discourage monopoly.

"It is our responsibility to save this industry. After saving it, we can demand more facilities. We must not forget that facilities could be obtained if the industry remains operational, else there will be nowhere to go," he said.

FM Dr. Mahat said that if there was no commitment from the management and trade union, it would be difficult to save the industry. If there is a commitment to save the industry, a lot can be done by using new technology over time, he maintained. 

Published in The Rising Nepal daily on 21 December 2023.