Nepal In Process Of Becoming Self Sufficient In Cement Production: NRB Report

May 23, 2021 | Investopaper

A study has shown that Nepal can become self-sufficient in cement production. This is shown by the study of Nepal Rastra Bank on ‘Foreign Investment in Nepali Cement Industry: Socio-Economic Impact’ released on Friday.

The study has shown that the production capacity of cement industries established with foreign investment is high and the cost is low and the returns of such industries are satisfactory.  About 83 percent of the total demand for cement in Nepal is being met by domestic production.

Stating that 55 cement industries operating in Nepal at present can be self-sufficient in cement by operating at full capacity, the study report states that some amount of cement is still being imported as the industries are not producing cement at full capacity.

At present, there are 55 industries in Nepal, including three with foreign direct investment, two with government investment and 50 with private investment. The total installed production capacity of these industries is 15 million metric tons while the demand for cement in the domestic market is 9.05 million metric tons. These industries have produced only 7.49 million metric tons of cement.


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