May 132016
 

Growth rates in 2015/16: many sectors in the economy were hit hard by the earthquake, the blockade, draught, wildfires and more.

Growth rates in 2015/16: many sectors in the economy were hit hard by the earthquake, the blockade, draught, wildfires and more.

It’s no surprise but now the numbers are out. This fiscal year was extremely tough on almost everybody! The earthquake aftermath, months of blockade, and widespread draught created the worst economic climate ever since the height of the Maoist conflict. The government spent a mere 20 percent of its capital budget, as against 60 percent in some previous years, and economic growth took a steep fall. Growth this fiscal year was below 1 percent, not least due to a staggering 10 percent drop in manufacturing, and in the agricultural and non-agro sectors the growth rate fell from 4.72 and 5.43 percent, respectively, to just 1.14 and 0.62 percent! Only fish farming and a few other sectors saw real growth. Can the economy rebounce? Well, recent data suggests it is already. But it is from a much lower level than before the downturn in 2015/16 began.

Here’s more:
Economic growth to slump to 14-year low at 0.77 pc.
IMF lowers Nepal’s economic growth
ADB report projects Nepal’s GDP growth lowest in South Asia

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Apr 192016
 

Cement hub about to grow bigger: another cement factory under construction in Nawalparasi (central Terai)

Cement hub about to grow bigger: another cement factory under construction in Nawalparasi (central Terai)

Nawalparasi is already firmly established on the map as one of Nepal’s most industrialised rural districts. Located between Rupandehi to the west and Chitwan to the east, it’s exactly on the half-way mark along the Mahendra East-West Highway. Major industries like Chaudhary Udhyog Gram (CUG), Bhrikuti Pulp and Paper Factory, and Lumbini Sugar Industry and Triveni Distilleries, are already there. But above all, the district is known for its large cement production sector – and that’s just about to grow bigger!

PM laying foundation stone for Pokhara International Airport: reconstruction, roads and more set to boost cement demand in coming years

PM laying foundation stone for Pokhara International Airport: reconstruction, roads and more set to boost cement demand in coming years

Earthquake reconstruction and projects like new airports and highways means that demand for cement is set to explode, and domestic as well as international companies are moving in for a share. Many producers prefer to set up shop – like in the past – in Nawalparasi. Sarbottam Cement is preparing to press the start-button on two freshly installed plants, aiming to fill 30,000 sacks of cement the first year already, while Shivam Cement – a private Chinese-Nepali joint venture – is in a rush to build a bigger factory geared to produce 120,000 sacks every year!

Cement boom is about to stimulate employment too: one of many job ads coming out of Nawalparasi cement sector recently

Cement boom is about to stimulate employment too: one of many job ads coming out of Nawalparasi cement sector recently

The investments are not small either. Sarbottam Cement, established by the domestic Saurabh Group, has already pumped 4 billion rupees into its factory, while Hongshi-Shivam Cement has invested 2 billion rupees with more to come, and those are just the most recent examples! In fact, in the last few years entepreneurs have poured in 65 billion rupees in new cement plants in Nawalparasi altogether, and that means jobs too. As a case in point, Sarbottam Cement now employs 200 people, and cement production stimulates other sectors too, like transportation.

So, why Nawalparasi? First of all, the short distance to India, where it’s easy to buy necessary implements, is attractive to many companies. Plus it’s a matter of the district’s location right on the halfway mark along the Mahendra Highway: access to markets both east and west can’t get much easier than that. The quality of the infrastructure is relatively good, too. Damodar Poudel, a chief executive in the business, explains in short: “As investors look for road access first, cement factories are concentrated near the highways”.

With demand for cement set to explode, even more companies might soon throw out the anchor in Nawalparasi. But at the same time, a few other districts are lining up in the race too. Will Nawalparasi keep the lead – and what’s the bigger picture in Nepal’s booming cement sector? Here’s more!

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Dec 132015
 

It takes dozens of hands plus a good amount of skill and experience to bring a typical electricity pole in a village to an upright position

How long time does it take to erect electricity poles in a village? Well, it depends in great part on whether the electricity department provides machinery and/or manpower. If they don’t, as is most often the case, it can take days, even weeks to connect a village. The electricity poles come in concrete or steel and are in either case extremely heavy – it typically takes dozens of hands plus a good amount of skill and experience to bring the poles up and standing. So, how is it done? Well, it varies – but watch this video (left) to see how villagers in Pahari village, Kavre, erected altogether three heavy electricity poles last September.