KATHMANDU: Finance Minister Prakash Sharan Mahat has stated that the Udayapur Cement Factory is of national importance. He urged everyone to collaborate in addressing the challenges faced by the factory, a sentiment he expressed during his inspection of the factory and its quarries.
According to the minister's secretariat, during the observation of the cement factory on Wednesday, Finance Minister Mahat suggested that the factory could only be re-operated through the collective efforts of all. He added that merely providing government grants to the factory is not a solution to the problem.
"Attention should be given to the management, and the workers employed here should also feel a sense of responsibility. This situation has arisen because no one has realised their responsibility. One should change by learning from the past," he said.
The finance minister noted that many industries are run by the private sector and stressed the need to address the grievances of the workers. "The private sector itself purchases the land, develops the industrial structures, buys machines on loan, and operates the industries. It manages to make a profit even after covering all operating costs," he further added.
The Government of Japan has assisted in operating the Udayapur Cement Factory. The industry was established with an investment of Rs 440 million. Even now, the factory is not required to pay the principal and interest of one billion rupees. It only needs to cover the operating cost, but the Factory has been unable to meet this.
According to Finance Minister Mahat, the factory's current liability is Rs 750 million. "There is also a weakness in the government's appointment of the manager. We overlooked professionalism. The management leadership was also weak. Workers did not fulfil their responsibilities well, focusing only on asking for facilities. The cumulative effect of all this is the present situation of the Factory," he reasoned.
The Minister said the problem had been accumulating even before the Covid 19 pandemic.
"There is a lack of thinking that its assets should be protected with due importance, and so success could not be achieved. The government's participation is not necessary for the factory, but the government invested to make the factory competitive with the private sector, and friendly countries also provided support in this. It is necessary to continue with this."
The finance minister said, saving the factory would be difficult without commitment from the management and the trade unions. He mentioned that it is necessary to use new technology in line with the times to save the factory, and the government is ready to extend support if efforts are made with the mentality of salvaging the industry.
"The factory should sustain amidst competition. This industry cannot be forcibly saved only by investing the tax money raised in other sectors. The management, workers, proprietors, and local government should express a collective resolve to save it. Then only will the government see what it can do," Finance Minister Mahat said, emphasising the need for professionalism in work.
