After the MoU, IBN and Suryatara will have to sign the project implementation agreement. For this purpose, the company has to complete the financial closure. As per the rules, the company is required to sign the project implementation agreement with the board within two years of the approval of the investment.
Suryatara received approval for investment from IBN to operate a cement plant in Surkhet as a domestic investment. According to the company, Nepali banks have already committed to invest in the project and loans will be sought at the ratio of 80 percent of the total investment. According to the company, the financial closure of the project will be done after completing the necessary procedures. If this project is successful, it will become the first cement industry in the Karnali province. The production capacity of the proposed cement plant has been estimated at 3,000 tons (60,000 sacks) daily. The company has planned to supply the cement to districts in Karnali and Sudurpaschim provinces. Suryatara has already purchased nearly 40 bighas of land to set up the cement plant. Similarly, it has been confirmed that limestone will be brought to Barahtal of Surkhet for the processing of the raw material. Mukund Timilsina, Ajay Sumargi and other businesspersons will invest in the proposed cement industry. Suryatara Cement aims to bring the plant into operation within two years of starting the construction of infrastructure. Timilsina was earlier the chairman of Samrat Cement in Dang. However, he sold his shares to Binod Chaudhary after a dispute. There is road access to the location where the cement plant will be set up. However, electricity lines are yet to be connected to the area. It has been estimated that about 20MW of electricity will be required to run the plant, which will require constructing a 26 km-long, 132 KV transmission line from Lamki Chuha in Kailali. The company says that the necessary work is currently being carried out in collaboration with the Nepal Electricity Authority.
