Nepal’s state-owned Hetauda Cement Industry has once again suspended production due to a lack of coal, highlighting ongoing operational and financial challenges at the plant.
According to recent reports, the plant has run out of coal supplies and has been unable to secure new deliveries due to outstanding payments to suppliers, forcing a halt to clinker and cement production. The facility requires around 120t of coal per day to maintain operations, but financial constraints have prevented further procurement.
The latest shutdown follows a brief resumption of clinker production in late March 2026, when the plant restarted operations after securing limited raw material stocks. However, these supplies were only sufficient for short-term production, underlining the plant’s reliance on intermittent inputs.
Hetauda Cement has struggled with chronic financial difficulties, ageing equipment and irregular operations in recent years. The plant has operated only intermittently, with production frequently disrupted by shortages of coal and other inputs, as well as mounting liabilities and unpaid wages.
Despite renewed political pressure to revive the facility and return it to full capacity, the plant continues to face structural challenges, including outdated machinery and limited access to working capital.
