NEPAL > Nepal approves $ 140 mn proposal by Chinese cement firm

Nepal has approved a USD 140 million investment proposal by a Chinese company to set up a cement plant in the country, the second largest FDI proposal in the sector from China to Nepal. The Investment Board Nepal (IBN) in a meeting chaired by Prime Minister K P Sharma Oli yesterday, approved the proposal of China’s Huaxin Narayani Investment to set up the cement factory. The company is looking for a site in the Eastern, Central and Western regions to set up the plant which will produce 1.1 million tonnes of cement annually, IBN CEO Radhesh Pant said.

This is the second FDI proposal from China to Nepal this year. In July this year, Nepal endorsed a FDI proposal worth USD 360 million made by China’s Hongshi Holdings Limited to establish a cement plant in partnership with Nepal’s Shivam Cement.

That was the largest FDI proposal from China. The two companies signed an agreement in March to set up a cement plant in Nepal.

According to Nepal’s Cement Manufacturers’ Association, there are over 40 cement plants in the Himalayan nation and domestic products account for 85 per cent of the total consumption in this country.