Udayapur Cement Industry resumes production after eight months

By Bhaktibilas Pokharel,Gaighat, Nov. 27: The Udayapur Cement Industry, which had remained fully closed for the past eight months, has resumed operations. The state-owned industry had experienced repeated shutdowns in the past, but this latest closure was the longest in recent years.

The country’s largest government-owned industrial enterprise was decided to be privatized by the Council of Ministers on May 28, 2025. Following the decision, operations were completely halted due to uncertainty regarding the privatization process. The industry has now been repaired and brought back into operation, according to General Manager Kovid Kafle.

Kafle stated that the cooperation of workers, employees, and the current government played a crucial role in reopening the factory amid uncertainty caused by the privatization decision.

During the shutdown, the industry failed to provide salaries and benefits to its employees. Despite not receiving any facilities, employees continued to work and waited in hope of resumption, Kafle added. While the plant originally had 533 staff positions, only 193 permanent employees are currently working there.

The industry has also hired 60 security guards through an external company, but they too have not been receiving salaries for months, employees complained. To ensure long-term operation, the general manager said the industry has requested a loan of Rs. 240 million from the government. The industry has proposed returning the loan within three years with interest, according to the administration.

Located in Triyuga Municipality–6, Jaljale, Udayapur, the plant is based in one of South Asia’s largest and highest-quality limestone reserves. The factory has the capacity to produce 800 metric tonnes of clinker per day, but has not been able to operate at full capacity due to outdated machines. Frequent shutdowns have caused losses amounting to millions each day, Kafle informed.

The industry currently owes tens of millions of rupees in liabilities, but the administration claims that regular operation will gradually reduce the debt.

Following the Gen Z protest movement, local Gen Z groups have also raised demands that the Udayapur Cement Industry must not be privatized and should be kept under government ownership.