HETAUDA, JULY 7
Hetauda Cement Industry Limited, operated under full ownership of the government, in Hetauda, might have to bear huge financial loss due to unfavourable situation following the COVID-19 pandemic.
According to the Industry's preliminary estimate, it was incurring a loss of Rs 250 million in the current fiscal year 2020-21.
Earlier, the Industry had faced financial loss worth around Rs 250 million in the fiscal year 2019-20.
Officiating Manager (Finance) of the Industry Ram Babu Shah said that the industry had been bearing huge financial loss as the production of cement and its sale had stopped due to the unfavourable situation caused by the COV- ID-19 and the subsequent lockdowns in the past two fiscal years.
The industry has had to bear financial loss due to decrease in production and sale even in the peak season. Four months' period from April to July is considered the peak season for selling cement. It has been bearing huge financial loss in many fiscal years except some years due to various reasons.
General Manager of the industry Prem Shankar Singh said that old machinery, technology, and failure to compete with private cement industries are some reasons behind the huge financial loss.
The industry makes around Rs two billion income annually and its expenses is more than the income.
It has been spending the largest amount in salary, management of raw materials and repair and maintenance.
A version of this article appears in the print on July 8 2021, of The Himalayan Times.
