KATHMANDU, Nov 8: The cement factories run by the private sector in Nepal are profitable. They have even started exporting cement to foreign markets. However, the state-owned Udayapur Cement Factory is sinking deeper and deeper into crisis day by day.
Due to the negligence of the managerial leadership, the factory has gone through a difficult situation. The factory is currently closed. The factory, which opened a few days after the Dashain festival, has not started operating even after the Chhath holiday. The trade union there has requested the Ministry of Industry, Commerce and Supplies to start the factory. The trade union alleges that the top management has ruined the industry. They have alleged that there is financial embezzlement and irregularities in the factory.
Bishweshwar Pal, president of All Nepal Industrial Workers Union, claimed that there is a game to destroy the industry. "We have requested the ministry to facilitate operations after the closure of the industry," Pal said. "There have also been irregularities in the sale of cement." Pal said that there are also examples of money not being collected after the cement has gone in the ERP system. The factory has been producing the Gaida Brand of cement.
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The factory was at a loss of 306 million rupees in the financial year 2020/21. Before that, there was a loss of 333.36 million rupees in 2019/20. In the financial year 2017/18, there was a profit of 100 million rupees. The general manager at that time was Surendra Paudel. The industry has not disclosed the profit and loss of the last financial year 2021/22. There is a loss of 5.5 billion rupees till the financial year 2020/21.
While the private sector cement factories earn millions of rupees in profits, the government-owned Udayapur Cement Factory has always been in loss. According to the annual status review report of public enterprises of the Ministry of Finance, there is an investment of 5.37 billion rupees in Udayapur Cement Factory. Pal said that the economic condition of the industry is becoming critical and the employees are not getting any service facilities.
President of Industry Trade Union Radhe Kumar Koirala, President of Nepal Factory Labour Union Devendra Jha, President of All Nepal Industrial Workers Union Bishweshwar Pal, Vice President of Nepal Industrial Workers Organization Buddhiman Tamang drew the attention of the Ministry of Industry, Commerce and Supply and demanded the operation of the industry. The trade union also alleges that only half is produced of the total capacity of the industry. The factory has not deposited funds in the employee's provident fund and citizen investment fund since June.
The trade union alleges that General Manager Gopi Krishna Neupane is irresponsible for the collapse of the industry. However, General Manager Neupane drew attention to the fact that the four trade unions were misusing industry resources by spending on hospitality, vehicles, and unnecessary expenses.
General Manager Neupane said that there is no truth in the allegations made against him. "I have not spent a single rupee," said Neupane, "If the government supports me, I will run it at full capacity and make a profit." Neupane was appointed in December 2020. In the fiscal year 2020/21, the year he was appointed, there was a loss of 306 million rupees. According to the employees working in the industry, the industry has to pay about 240 million for electricity and about 260 million for the purchase of coal.
Similarly, he said that the industry which is currently closed will be operational within two to three days. As the machines are old, Neupane insists that the government will give a loan to repair the industry and run it at full capacity. He mentioned that as the machines are 30-year-old, there should be investment for the repair and maintenance of the industry.
