According to a report, Nepal can produce enough cement to be self-sufficient. This is demonstrated by a study released on Friday by Nepal Rastra Bank titled “Foreign Investment in Nepali Cement Industry: Socio-Economic Effect.”
The study found that cement industries with foreign investment have a high production potential, low costs, and adequate returns.
Domestic cement production meets about 83 percent of Nepal’s total cement demand.
The study report claims that while the 55 cement industries operating in Nepal can be self-sufficient in cement if they operate at full capacity, some cement is still imported because the industries are not producing cement at full capacity.
Nepal currently has 55 industries, with three involving foreign direct investment, two involving government investment, and 50 involving private investment.
These industries have a combined installed production capacity of 15 million metric tons, while domestic cement demand is 9.05 million metric tons. Just 7.49 million metric tons of cement were manufactured by these industries.