Factory remains idle 2 yrs after construction completion 

Although construction of a new factory for Chhatak Cement Company Limited in Sunamganj was completed in March 2023, production has yet to begin—two years on.  

The government-run facility remains inactive, mainly due to two unresolved issues: lack of permission to build part of the limestone ropeway on Indian territory and the absence of a gas line connection. 

Officials say this delay is resulting in a significant waste of resources and manpower. Moreover, there is growing concern that the factory’s newly installed equipment may suffer damage from remaining idle for too long. 

Limestone, the factory’s primary raw material, is transported from India via a 17-kilometre-long ropeway that spans both countries. However, construction on the 11-kilometre Bangladesh segment is still in its early stages, and permission for the remaining 6 kilometres on the Indian side has not yet been secured.

A source involved in the matter said that efforts are underway to finalise an agreement with an Indian company to construct the Indian segment. The draft of this agreement has already been sent to the Ministry of Industries from the Chhatak factory. 

The factory project, titled Conversion of the Production Method of Chhatak Cement Company Limited from Wet Process to Dry Process, began in January 2016. Under this initiative, a new factory and a supporting ropeway were to be constructed. The main contractor is China's Nanjing Sea-Hope Cement Engineering Group Company Limited. 

According to factory and project sources, the contractor has built the ropeway infrastructure on the Bangladesh side along with the new factory. However, the Indian government objected to Chinese involvement in building the ropeway within its territory, which has led to prolonged delays. 

To overcome this, the Bangladesh government and the Chinese contractor have agreed to subcontract the Indian section of the ropeway to a domestic Indian firm. The Indian government has reportedly given its consent to this arrangement. Talks are currently ongoing to award the job to Komorah Limestone Mining Company (KLMC), the Indian firm that already supplies limestone to Chhatak Cement. 

Abdur Rahman, Managing Director (Additional Responsibilities) and Project Director of Chhatak Cement Company Limited, told Prothom Alo on 18 March that the Chinese contractor has been asked to transfer responsibility for the Indian section to the Indian firm. The contractor has agreed in principle. 

According to information from the Bangladesh Chemical Industries Corporation (BCIC) website, Chhatak Cement Factory is the country’s only integrated cement plant—producing both clinker and cement in-house. The most critical step in cement production is the formation of clinker, which involves chemically processing calcium, silica, alumina, and iron—primarily sourced from limestone and soil—at various high temperatures. 

Project officials stated that once the new factory begins operations, it will be capable of producing 1,500 metric tons of clinker and 500 metric tons of cement daily—tripling its previous production capacity. This increased output will require a significantly higher volume of gas than before. 

Until now, gas was supplied by Jalalabad Gas Transmission and Distribution System Limited from a main line in the Chhatak region. However, to meet the new factory’s increased demand, a new 43-kilometre gas pipeline will have to be constructed from Sylhet to the factory. This requirement was not included in the original project design. 

The project office has acknowledged this oversight and has since revised the project cost to include the construction of the gas line. Initiatives are underway to build the new pipeline. 

Initially approved in 2016 with an estimated cost of Tk 6.67 billion, the project cost was later revised to Tk 8.90 billion. Following another revision, it currently stands at Tk 14.18 billion. The original deadline for project completion was June 2025, but the project office has applied to the Planning Ministry to extend the timeline to June 2026. 

Production at both the old and new Chhatak Cement factories has remained suspended since May 2021. According to factory and project sources, this was due to a ban imposed by the Indian government in 2020 on Komorah Limestone Mining Company (KLMC), the sole supplier of limestone to the factory. Without access to limestone, operations came to a halt. 

Though the ropeway is now constructed, uncertainty remains about the factory’s reactivation due to KLMC’s unresolved ban. However, factory officials have clarified that the ban applies specifically to stone extraction, not infrastructure development. KLMC, therefore, remains eligible to construct the ropeway. 

Officials also said that efforts are ongoing to lift the ban. KLMC has reportedly taken steps including securing land leases in India to resolve the matter. Even if the ban remains in place, the company has stated that it would procure limestone from other suppliers and continue deliveries. 

During a visit to the site on 8 April, it was observed that a jetty has been constructed on the riverbank for unloading clinker from the factory. A conveyor system has been set up to move cement bags directly from the factory to boats. A new conveyor belt has also been installed alongside the old one. 

Local residents told Prothom Alo that while production at the adjacent privately-owned Lafarge Cement Factory continues uninterrupted, the government-owned Chhatak Cement Factory remains idle.