Maruti pumps in additional Rs 1.15b into cement business

KATHMANDU, DEC 25 -

Even as cement industry in the country has been attracting both domestic and foreign investors, Maruti Cement Industry is injecting an additional investment of Rs 1.15 billion.

The Industry got nod from the Industrial Promotion Board (IPB), chaired by Industry Minister Shankar Prasad Koirala. “The IPB meeting on Wednesday approved the industry’s proposal of adding investment along with the capacity enhance cement of the factory,” said Dhurba Lal Rajnbanshi, director general at the Department of Industry (DoI). The company had earlier made an investment of Rs 2.25 billion.

“Now it has invested a total of Rs 3.4 billion,” said Rajbanshi, who is also
the member secretary of the IPB.

An Indian company ‘Gravity Sales Pvt Ltd’ has 22.5 percent stake at the Maruti Industry, which also has nine Nepali investors. According to Rajbanshi, both Nepali and Indian investors are adding investment on proportional basis of their stake. It means, the industry will get a total foreign investment amounting to Rs 258.75

million. “The board has opened door for investors to add capital,” said Rajbanshi.

The IPB approves the proposal of investment above Rs 2 billion while investment below that amount is approved by the DoI itself. Nepal Investment Board looks over the investment of Rs 10 billion and more. Besides, the factory has also received permission to increase its capacity; it can now produce an additional 380,000 tonnes of cement annually. “Earlier, it used to produce 321,000 tonnes of OPC cement each year. Now, the board has allowed it to produce upto 525,000 tonnes a year,” Rajbanshi said. Likewise, the industry has also been allowed to produce 334,000 tonnes of PPC cement , up from 231,000 tonnes. The factory, however, has not increased its production capacity for PAC cement .

The IPB meeting has also formed a task force to carry out a study on providing electricity and other facilities for the manufacturing industries. Similarly, the board also decided to waive excise duty on raw materials and packing goods of export oriented industries. According to Rajbanshi, the task force has been formed under the coordination of the joint secretary at the Industrial Promotion division of the Industry Ministry. “The task force will study what incentive the government can offer to the productive sectors,” said Rajbanshi. “We have designated two months for the task force to complete the study.”

 Industrialists involved in the productive sector were demanding such facilities with the Industry Ministry, Department of Industry and Industrial Promotion Board.

Source: The Kathmandu Post