Nepal | April 04, 2020

Tarai turmoil forces UCI to down its shutters

Himalayan News Service

Gaighat, November 5

Udayapur Cement Industries (UCI), the biggest cement factory in the country, had to pull its shutters down due to the disruption in vehicle movement caused by the ongoing agitation in the Tarai.

General Manager of UCI Surendra Poudel said the factory incurred a loss of Rs 200 million after it was unable to operate owing to lack of raw materials. He said cement production had come to a grinding halt after raw materials could not be supplied to the factory due to the protracted strikes in the plains since three months.

Poudel said UCI was able to produce only 70 per cent cement of its total production capacity within two months. Reportedly it needs 100 tonnes of coal and 2,000 litres of diesel on a daily basis.

However, the required raw materials could not be supplied from India due to the blockade at the border points and general strike.

“It had become impossible to even manage the daily administrative expenses,” Poudel informed.

The factory’s total expenditure is said to be around Rs 30 million, including Rs 20 million for staff’s salary and Rs six million for electricity as well as other expenses, on a monthly basis.

Poudel said they would not be able to pay the salary and electricity bills if the crisis persisted for one more month.


A version of this article appears in print on November 06, 2015 of The Himalayan Times.

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