Civil unrest in Assam delays Bhutan plant

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Bhutan/India: On-going civil unrest in the Indian state of Assam is delaying the construction of a US$173m plant being built in Chengkari in south-east Bhutan. The project is facing delays partly due to disorder in Assam that has impacted upon its supply channels.

In addition, a severe shortage of Indian rupees in Bhutan, due to a rise in aggregate demand for the currency and limited supply, has had an impact on the project as most of the materials for the projects are sourced from India. The Indian government is providing US$54.6m towards the project in financial support. The project is expected to commence operation in May 2013, which if met, would represent a delay of nearly 15 months. Clinker production is expected to commence soon.

The project is being implemented by Dungsam Cement Corporation Limited, which is a wholly-owned subsidiary of Druk Holding and Investments, an investment arm of the Royal Government of Bhutan. The plant will have production capacity of 1Mt/yr for clinker and 1.36Mt/yr for cement.

Last modified on 19 December 2012

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