Udayapur Cement, once Nepal’s pride, teeters on the brink of bankruptcy
Summary
Udayapur Cement, once a symbol of Nepal’s public industrial pride, is on the brink of bankruptcy with liabilities exceeding Rs5 billion and production halted for months. Workers remain unpaid, bank accounts are frozen and officials say political interference, outdated machinery and weak management have pushed the state-owned plant into a deep crisis.
Key Points
- Udayapur Cement’s liabilities have crossed Rs5 billion, while employee-related dues alone have exceeded Rs1 billion.
- Production has been halted since last February because of a lack of working capital, frozen bank accounts and unpaid suppliers.
- Workers say many have gone months without salaries, benefits and even medical treatment, with some reportedly dying while waiting for payment.
- Officials and local stakeholders are pushing revival plans, including modernization and a public-private partnership model.
