Nepal’s cement industry: growth, jobs and pollutionCEFR B2
25 Nov 2025
Adapted from Qian Sun, Global Voices • CC BY 3.0
Photo by JC Gellidon, Unsplash
Nepal’s cement industry expanded quickly after the 2015 Gorkha earthquake, driven largely by large foreign investments. Hongshi’s 2017 deal (USD 359 million, 70 percent stake, joint venture with Shivam Cement) and Huaxin’s 2019 entry (USD 140 million) raised capacity and helped Nepal become self-sufficient by 2019. The country began exporting to India in July 2022.
The sector rests on large domestic resources: 1.07 billion tons of limestone, enough for at least 100 years, and a network of 124 registered factories, 72 of which operate and can produce up to 22 million tons a year. The industry’s turnover is about NPR 150 billion (over USD 1 billion), and exports brought NPR 3.85 billion (USD 24 million) in 2023/24. Projects such as the Nawalparasi plant created at least 10,000 jobs and new roads.
Environmental and social impacts have also risen. The September 2024 floods killed nearly 250 people nationwide, and at least 69 deaths in Rosi Valley were linked to unregulated quarrying and sand mining. Surveys and studies report air, water, noise and soil pollution; a 2021 Nepal Rastra Bank study found 92 percent of respondents blamed cement industries for local pollution, and a 2021 paper linked soil erosion to poor mine management. The State of the Global Air 2025 reports 41,300 deaths in 2023 from hazardous air pollutants.
- Political and trade tensions affect the sector: India stopped issuing IS stamps for Nepal-made cement starting in 2024, reducing market access.
- Observers say Chinese-funded projects are hard to oppose because they bring newer technology and promise local benefits.
- Past cases show trade-offs: the state-owned Himal Cement Factory began in 1967, caused local pollution, faced protests and closed in 2002.
These developments complicate Nepal’s goal of reaching net-zero emissions by 2045 and highlight the balance between economic gains and environmental and social costs.
Difficult words
- stake — share of ownership in a company
- self-sufficient — able to meet needs without outside help
- capacity — maximum production ability or output level
- turnover — total business sales in a period
- quarry — to take rock or minerals out of the groundquarrying
- unregulated — not controlled by rules or laws
- erosion — gradual loss of soil or land surface
- net-zero — when emissions and removals balance to zero
- market access — ability to sell goods in another market
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- What trade-offs between economic benefits and environmental or social costs do you see in the article? Give examples from the text.
- What measures could Nepal adopt to reduce pollution from the cement industry while keeping jobs and infrastructure benefits?
- How might loss of market access, for example India stopping IS stamps, change investment or local communities in Nepal?
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