Chhatak Cement Co's modernisation faces further delays

State-run Chhatak Cement Co in Sunamgonj, Bangladesh, might not return to production anytime soon as its modernisation project is set to miss the deadline for the second time, while uncertainty over the supply of limestone persists.   

Initiated in 2016, the project aimed to replace the existing wet-process line with a new dry-line to raise output to 1500tpd in a fuel-efficient and eco-friendly way, up from 200-300tpd when it was last operational in March 2020.

The delay comes despite the construction of the factory, silos and other important components, and largely because the supply of limestone from India is yet to be finalised. In addition, the new ropeway has not been installed yet. The construction of the ropeway will take at least another two years. The work of the 17-kilometre ropeway from the factory to India has not begun as the permission to build its Indian portion is yet to be confirmed.

"If the process of procuring limestone from India is not finalised soon, there is a possibility of a further delay in the production of cement from the plant," said the Implementation Monitoring and Evaluation Division (IMED) in a report on the modernisation of the country's first state-owned cement factory.

The Bangladesh Chemical Industries Corp (BCIC) has recently proposed the planning ministry extend the project's deadline to June 2025 and raising the budget to BTK14,180m (US$129.2m).