Hetauda, July 7: Hetauda Cement Industry Limited, operating under full ownership of the government, located in Hetauda, might have to bear a huge financial loss due to the unfavorable situation following COVID-19.

The Industry has made a preliminary estimate that it was incurring a loss of Rs 250 million in this fiscal year 2020/21.

Earlier, the Industry had faced financial loss worth around Rs 250 million in the fiscal year 2019/20.

Officiating Manager (Finance) of the Industry, Ram Babu Shah, said that the Industry has been bearing a huge financial loss in lack of production of cement and its sale due to unfavorable situation following COVID-19 for the past two fiscal years continuously.

The Industry has to bear the financial loss due to a decrease in its production and sale even in its main season. Four months' period from April to July is the main season for selling cement. It has been bearing huge financial loss in many fiscal years except for some fiscal years due to various reasons.

General Manager of the Industry, Prem Shankar Singh, shared that old machinery technology, failure to compete with private cement industries are some reasons behind the huge financial loss.

The Industry makes around Rs 2 billion income annually and its expenses are more than the income. It has been found spending its largest amount in salary, management of raw materials and repair and maintenance sector.