Nepal: Hongshi-Shivam plant faces possible delays

Nepal: Hongshi-Shivam plant faces possible delays
Published: 24 June 2016


Hongshi-Shivam Cement’s plans to build a 2Mta cement plant in Nawalparasi in southern Nepal have run into problems over the amount of land needed for the project, Xinhua reports. Under Nepali law, government ministers must approve land sales above eight hectares, while Hongshi-Shivam has said it requires 40ha to build the plant.

A director at Hongshi-Shivam, Satish More, said: "The Land Reform Ministry has sent the proposal of clearing our company to hold more lands to the cabinet. We are awaiting the clearance from the government at the earliest and we are hopeful that it will happen soon."

Despite having initiated this process some time ago, officials at Hongshi-Shivam are worried that if approval is not quickly forthcoming the project could be delayed. Construction work is planned to start in October and will take about three years.

Hongshi-Shivam is a joint venture between China’s Hongshi Holding Group and Nepalese firm Shivam Cement.