July 28: The merger process of two state owned cement companies - Hetauda Cement Industry and Udayapur Cement Industry - has been delayed due to the transfer of the coordinator of the merger committee.

Shobha Kant Poudel, joint secretary at the Ministry of Industry, Commerce and Supplies, was appointed as the coordinator of the committee. However, he was later transferred from the ministry while the ministry has not been able to appoint a new coordinator to replace him.

Currently, a committee comprising representatives from the Ministry of Finance and the Company Registrar Office as well as mechanical engineers has been formed to study the financial and technical aspects of the two state-owned cement industries.

The committee had to submit their report by May which now is expected to submit by August 2020.  The study was delayed due to the transfer of joint secretaries from the ministry.

According to the ministry, the committee will analyze the legislation of the merger as per the terms of reference (TOR), property liability and staff management of both the companies, institutional reform, production cost reduction and technological reform. Market study, competition and share structure are also  other factors taken into consideration for the merger.

An official at the ministry informed that the ministry is studying these issues while legal study has been completed.