Nepal | July 11, 2020

Licences of two cement producers terminated

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The government has terminated the licence of two cement manufacturers for selling substandard cement in the market and also initiated the process to take action against two other manufacturers.

The Nepal Bureau of Standards and Metrology (NBSM) informed that the production licences of Reliance Supertek Cement, Bara and International Cement Ltd, Parsa have been terminated after they were found selling cement that did not comply with the quality standards set by the government.

“These two companies even defied our direction to halt selling their products and were repeatedly found selling substandard products in the market,” informed Bishwo Babu Pudasaini, director general of NBSM.

Similarly, NBSM has also initiated action against other two other cement manufacturers — Agni Cement of Rupandehi and Sarbottam Cement of Nawalparasi — for selling substandard cement in the domestic market.

“We have sought clarification from these two companies after the cement products that they were selling in the market were found to be of poor quality. Appropriate action will be taken after the clarification process,” added Pudasaini.

Regarding the companies whose licences have been scrapped, he said that they will have to reapply for the licence by fulfilling all legal and quality standards criteria.

The action against the cement manufacturers could derail the progress achieved in ramping up cement production in the country. Manufacturers had claimed that Nepal has significantly closed the gap to become self-reliant in cement.

As per Pudasaini, the bureau had intensified its market inspection after complaints were registered stating that a few producers have been selling low quality cement in the market.

“We had collected samples of about a dozen cement factories and conducted laboratory tests,” he added.

Similarly, the bureau has also initiated action against Everest Gas, Kathmandu after the gas bottler was found to be circulating liquefied petroleum gas (LPG) cylinders that do not meet Nepal Standard quality standards.

“LPG cylinders are sensitive products and circulating them in the market without complying with quality standards can pose serious threat to people’s lives,” said Pudasaini, adding that a clarification has been sought from Everest Gas.

The bureau has also initiated action against Kamala Rolling Mills, Morang after the company was found using quantities of sulphur and phosphorus in its products that exceeded the limit set by the government.

A version of this article appears in e-paper on June 27, 2020, of The Himalayan Times.

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