Kathmandu, Jul 9 (IANS): For the first time, Nepal has started exporting cement to India.

The official process began on Friday with Palpa Cement Industries Limited exporting its Tansen brand to India.

The company located at Sunwal Municipality-7 in West Nawalparasi district hosted a special function to mark the launch.

The government in its annual budget had introduced a subsidy of 8 per cent in cash to companies exporting cement using Nepali raw materials.

"Today, we exported some three thousand sacks of cement to India. Now onwards, we will be exporting it as per the demand on a daily basis," said Jeevan Niruala, the public relations office of the Palpa Cement.

Industrialists have welcomed the development as Nepal has become self-reliant on this construction material.

Over 50 cement companies operate in Nepal. Of them, 15, including Palpa Cement Industries Limited, produce both cement and clinker.

Various reports show that the total cement production capacity of the companies is 22 million tonnes.

Industrialists say that Nepali cement products face stiff price competition in the Indian market.

Shekhar Agrawal, executive director of Palpa Cement Industries Limited, said that cement export could slash Nepal's trade deficit with India by 15 per cent.

He said the demand for PPC cement was high compared to OPC in the Indian market, and that his company has its own limestone ore to use for producing the cement.

Palpa Cement Industries has been producing 1,800 tonnes of cement and 800 tonnes of clinker daily while it has an installed capacity to produce 3,000 tonnes of cement.