Kathmandu: The initial public offering (IPO) of Palpa Cement Industries Limited, scheduled to be issued from May 25, has become embroiled in controversy ahead of its launch, with protests erupting over the alleged exclusion of local residents from affected areas.
The IPO, which is set to be issued in the first phase for project-affected local communities and Nepalis working abroad, has drawn strong opposition from residents of Devdaha Municipality, who claim they have been unfairly left out despite being directly impacted by the cement industry.
Local residents have begun protesting, accusing the company of discriminating against communities in Devdaha, which they say faces environmental and other forms of pollution caused by the cement plant. Protesters argue that while the IPO is being marketed as one for “affected locals,” residents of Devdaha—an area they claim is clearly impacted—have been excluded from eligibility.
Following mounting pressure and public protests, Devdaha Municipality has formally written to Palpa Cement Industries, demanding that the municipality be recognized as a project-affected area and that its residents be allowed to participate in the IPO.
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In its letter, the municipality stated that the environmental and other adverse impacts generated by the cement industry are “directly visible” in Devdaha. The letter urges the company to include Devdaha Municipality as a mandatory affected area and to ensure local participation in the IPO in line with prevailing standards and norms.
“Since the impacts of environmental and other pollution generated by the industry are directly visible to the local residents of Devdaha Municipality, it is requested to include this municipality as a mandatory affected area and ensure the participation of the local community in the IPO as per the standards,” the municipality said in its communication to the company.
Meanwhile, local residents have intensified their opposition, warning of further protests if their demands are not addressed. They allege that excluding Devdaha locals amounts to a deliberate boycott of communities bearing the environmental burden of the project while denying them economic participation.
Palpa Cement Industries has not yet issued an official response to the municipality’s letter or the protests. The controversy has raised broader questions about transparency, fairness, and the criteria used to define “project-affected” areas in public offerings of industrial companies.
As the scheduled IPO date approaches, pressure is mounting on the company to clarify its position and address the concerns of excluded local communities.
