Huaxin Narayani receives approval to invest additional Rs 6.63 billion

KATHMANDU: Huaxin Narayani Cement Ltd has received permission to invest an additional Rs 6.63 billion (around $52 million) in Nepal.

A meeting of the Board of Directors of the Investment Board Nepal held on Tuesday took the decision.

Huaxin Cement Narayani Pvt. Ltd, a joint venture of Huaxin Central Asia Investment (Wuhan) Co Ltd and the Vaidya’s Organization of Industrial and Trading Houses (VOITH).

The cement factory is spread over 500 ropanis of land in Dhading district.

With a fresh investment of Rs 6.63 billion, the total investment in the company will reach Rs 20 billion. The company started production in 2022.

Office of the Investment Board Nepal (OIBN) and Huaxin Cement signed a project development agreement to start Huaxin Narayani Cement Ltd in June 2018.

Meanwhile, the board meeting of Investment Board Nepal has formed a negotiation team under OIBN CEO Sushil Bhatta to hold talks with Dabur Nepal Ltd, which has proposed to invest an additional Rs 9.68 billion in Nepal.

If the new investment proposal is approved by the OIBN, the total investment in Dabur Nepal will be Rs 15 billion. Dabur Nepal has stated in its investment proposal that it was making new investments to increase its production capacity and diversify its product line.

OIBN signed a Memorandum of Understanding with Dabur Nepal for new investments on April 27 last year.