Nepali cement products, however, face stiff price competition in the Indian market
Nepal has started exporting cement to India for the first time. The official process began last week with Palpa Cement Industries Ltd exporting its Tansen brand to India. The company, located at Sunwal Municipality-7 in West Nawalparasi district, hosted a special function to mark the occasion.
Nepal’s government in its annual budget had introduced a subsidy of 8 per cent in cash to companies exporting cement using Nepali raw materials.
“Today, we exported some three thousand sacks of cement to India. From now, we will be exporting it as per the demand on a daily basis,” said an official of Palpa Cement.
Over 50 cement companies operate in Nepal. Of them, 15, including Palpa Cement Industries, produce both cement and clinker. The total cement production capacity of the companies is reported to be 22 million tonnes.
However, industrialists say that Nepali cement products face stiff price competition in the Indian market, with the demand for PPC cement being higher than for OPC.
Palpa Cement Industries has been producing 1,800 tonnes of cement and 800 tonnes of clinker daily, while it has an installed capacity to produce 3,000 tonnes of cement.
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