Merger of Udayapur and Hetauda Cement Industries in Dilemma

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Merger of Udayapur and Hetauda Cement Industries in Dilemma

November 22: The merger of Udayapur Cement Industries and Hetauda Cement has become uncertain as the two state owned companies have shown no interest in merger.

Although the merger of the two industries was initiated in last July by drafting a Terms of Reference (ToR), the process has not gained momentum as both the industries have not responded to the government initiative.

The government had formed a committee during last May to merge these two entities.

According to a source at the Ministry of Industry, Commerce and Supplies, the merger process is in dilemma as they have not received any reply from the two industries. The source said that last July, the ministry had asked the industries for a written reply on whether they agree or disagree on merging and the pros and cons of the merger. As no information has been received from both the cement industries so far, no discussion has taken place to take the merger process ahead.

“There might have been some delays due to the coronavirus infection and due to the delay in discussion with the trade union of the industries,” the source said, adding, “We are waiting for their response.”

Earlier, the merger of Hetauda and Udayapur Cement Industries was delayed after the coordinator of the committee was transferred.

A committee consisting of a mechanical engineer and the representatives from the Ministry of Finance and the Office of the Company Registrar has been formed under the leadership of the Joint Secretary of the Ministry of Industry, Commerce and Supply to analyze the financial prospects and technical condition of the two industries and make suggestions.

The government has been claiming that the merger strategy has been adopted to reduce the administrative cost and to use the technical skills of one company for the benefit of  another as the two companies are of the same nature, but are being operated under different managements.



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