July 16, 2020 | Investopaper
Chaudhary Group is preparing to launch a new cement industry with an investment of Rs 12 billion. CG is constructing an industry in Sardeva of Palpa to bring it into operation within the next one year.
CG Cement Industries Palpa Pvt. Ltd. will produce 2,950 metric tons of clinker daily. Initially, the industry had permission to produce clinker with a daily capacity of 1,950 metric tonnes. The industry has now sought permission to increase the capacity by an additional 1,000 metric tonnes. It will also produce 2,000 metric tons of cement daily.
The industry has taken additional loan of Rs 2.37 billion from banks to increase its capacity. The total investment of banks in CG has reached Rs 9.63 billion, including loans given for capacity building.
Currently, CG is operating a cement industry in Dumkiwas, Nawalparasi. However, the industry does not produce clinker. The industry in Palpa will produce clinker and cement. The industry in Dumkiwas will also use the clinker produced in Palpa.
The cement industry will use the state-of-the-art German technology. The cement produced by the industry will be sold under the CG brand across the country.
Investment Of 10 Banks
Ten banks have invested in CG Cement under the leadership of Sanima Bank and co-leadership of Nepal Infrastructure Bank. Along with Sanima and Infra, Global IME, Kumari Bank, Sunrise Bank, Prabhu Bank, Nepal Bank, Century Bank, Nepal Credit and Commerce Bank and Nepal SBI Bank Limited have invested in CG Cement.
CEO Bhuwan Dahal on behalf of the leader bank (Sanima Bank), Bhupendra Pandey, Deputy Chief Executive Officer of Infra Bank on behalf of the co-leader Bank, Nirwan Kumar Chaudhary, CG Cement Chairman and Saroj Guragain, Chief Project Investment Officer on behalf of the leader bank signed the supplementary co-financing agreement.