Print Edition - 2016-05-26 | MONEY
Hongshi Shivam begins factory construction
-, Sardi, Nalwalparasi
The factory will have a capacity of producing 6000 tonnes per day and is expected to start production from 2017
May 26, 2016-Hongshi Shivam Cement Private Limited, a Nepal-China joint venture company, has started construction of its cement factory at China’s Hongshi Holding Group has poured foreign investment of Rs36 billion (70 percent) in the project, while the rest of the amount has been injected by the local partner.
The factory will have a capacity of producing 6000 tonnes per day and is expected to start production from 2017.Manager of the factory Shiva Ranta Atal said the construction started in April on 115 bighas of land. “We have started the process to acquire an additional 150 bighas,” he said.
The company also plans to increase the factory’s capacity to 12,000 tonnes in the next four years. Its mining facility is located at Jyamire, Palpa. Around 2,000 people will be employed once the industry starts operations.
The company has said it will pay Rs12 billion to the government in annual revenue if run at full capacity. It will pay more than Rs1 billion in electricity charges alone. The factory will require 80MW of electricity to run in its full capacity.
The locals of Sardi are elated with the prospects of getting jobs.
Krishna Paudel, a lawmaker from Palpa, said the industry will help uplift the local’s living standards.
He urged the investors to carry out the work with full confidence as the locals have offered their full support to the project.
According to Investment Board of Nepal (IBN), Hongshi Shivam is one of the FDI projects that has moved ahead quickly.
Besides, Nigeria’s Dangote Cement, another Chinese company Huaxin, and India’s Reliance Cement have received approvals for a combined FDI of $1.45 billion from IBN.
Their proposed production capacity stands at 22,000 tonnes per day.
Published: 26-05-2016 08:33