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Arghakhanchi Cement to start production of OPC cement this week
Arghakhanchi Cement, which had been producing and supplying clinkers to other cement factories for the past four years, is starting production of OPC cement from this week.

Pashupati Muraraka, one of the promoters of Arghakhanchi Cement, said they were starting cement production targeting mega infrastructure projects.

Arghakhanchi Cement, which has production plant in Mainahiya VDC of Rupandehi, brings raw materials from mines in Arghakhanchi and Palpa. The plant, which is spread over 20 bigha, has the capacity to produce 1,000 tons of cement and 1,200 tons of clinker every day.

Siddhartha Group, Murarka Group and Kedia Group of Nepal hold 35 percent, 30 percent and 17.5 percent stakes in Arghakhanchi Cement. Remaining 17.5 percent shares are held by Indian company Uma Cement International. The promoters first acquired Dynasty Cement, renamed it as Arghakhanchi Cement and expanded its capacity by importing modern machineries. They have invested Rs 3 billion in Arghakhanchi Cement so far.

All three Nepali promoters have their own cement factories.

The company has branded its product as ′Arghakhanchi Cement′ and it will come in 50 kg bags. It will be the second company in the country to use laminated cement bags after the Jagadamba Group.

Promoters say laminated bags ensure standard weight as well as have longer life.

Factory price for a bag (50 kg) of Arghakhanchi Cement has been fixed at Rs 630 exclusive of applicable taxes. The factory currently employs 600 people, according to the promoters.

Rajesh Kumara Agrawal of Siddhartha Group said they were willing to increase clinker production capacity to 2,400 tons. "But the authorities are hesitating to issue permission, saying that our plant is closer to a UNESCO World Heritage site," he said, adding, "We have used the latest technology to reduce pollutants and harmful emissions. The officials should take into account our efforts to reduce pollution and permit us for capacity expansion."

To ensure uninterrupted power supply, Arghakhanchi Cement has installed a plant of three generators with an investment of Rs 100 million. The plant consumes Rs 200 million worth of diesel annually. That brings the overall electricity cost at Rs 21 per unit, according to the promoters.

Though the government has announced a program to arrange power supply and build access roads to the site to attract investments in cement industries, Murarka said the company has not sought any support from the government so far.

Agrawal said they have also seen the prospect of exporting cement to bordering Indian towns.

UAECEMENT.COM - Dec,09,2014



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