Nepalese government terminates two cement producer licences

The government of Nepal has terminated the licences of two cement producers for selling cement that did not meet the quality standards set by the government.

The Nepal Bureau of Standards and Metrology (NBSM) informed that the production licences of Reliance Supertek Cement, Bara, and International Cement Ltd, Parsa, have been terminated. “These two companies even defied our direction to halt selling their products and were repeatedly found selling substandard products in the market,” informed Bishwo Babu Pudasaini, director general of NBSM.

In additin, the NBSM also initiated action against Agni Cement of Rupandehi and Sarbottam Cement of Nawalparasi for selling substandard cement in the domestic market. “We have sought clarification from these two companies after the cement products that they were selling in the market were found to be of poor quality. Appropriate action will be taken after the clarification process,” added Mr Pudasaini.

Once stripped of their licences, the companies will have to reapply by fulfilling all legal and quality standards criteria.

The NBSM had intensified its market inspection after complaints that a few producers had been selling low-quality cement. “We had collected samples of about a dozen cement factories and conducted laboratory tests,” he added.

The termination of licences is a setback in the drive for self-sufficiency in terms of cement supply in Nepal.