India has closed the Raxaul crossing on the Indonesian border since December 22, 2017. India said local residents complained that clinker trucks had caused serious environmental pollution and affected the health of local residents. The crossing is an important port for Nepal to import clinker from India.
On the other hand, Nepal's Birgunj Dry Port has allowed traders to import clinker and other raw materials from the port for cement production, but the Nepalese government has blocked the port's move because local residents complained about environmental pollution. This leaves 13 cement enterprises located in Parsa-Bara industrial corridor in an embarrassing situation of no clinker, no coal and no fly ash, but there are still a small number of enterprises located in the industrial corridor that can produce clinker to meet part of the demand, such as Shalimar cement.
"We produce only 10% of our own clinker," says a manager at Shalimar Cement. Although the company has the option to increase clinker production, the resulting increase in raw material costs is extremely high, so the company has to abandon this option. "If the current situation is not improved, the clinker we store can only cope with 3 to 10 days of production, and when the clinker is exhausted, we can only stop." A manager of Narayani Cement told reporters so.
Since the beginning of this year, Nepal's clinker imports have seen a sharp jump, as Nepal has begun to accelerate its post-earthquake reconstruction work, resulting in a huge increase in cement demand.
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