Nepal: The Nepalese Ministry of Industry intends to petition the Russian government for a US$11.5m grant to upgrade equipment at the Udayapur Cement Factory, the country's largest state-owned cement plant.
"The loan that we are looking for from the Russian government is solely to replace machine equipment parts," said Uma Kanta Jha, secretary of Ministry of Industry. Previously the ministry asked the Russian government for a grant for the Janakpur Cigarette Factory.
Key problems besetting the Udayapur Cement include a lack of raw materials, ageing machinery, overstaffing and mounting debts. The Nepalese government's procurement policy has been blamed for making it difficult to source raw materials from India, such as coal. Currently the factory has 549 permanent staff on its payroll. The plant incurred a loss of US$10.2m in 2010 - 2011 and has a cumulative loss of US$205m. The company last released audited financial results in 2004 - 2005.