Govt mulls open auction for cement units

Pratibha Chauhan

Tribune News Service

Shimla, January 3

The state government is contemplating open auction of the proposed cement plants at Gumma in Chopal and the white cement plant at Nauradhar in Sirmaur district.

Since as per the amended Mineral Regulation Development Act (MRDA) any cement plant allotment can now be made only through open auction, the mining wing of the Industry Department is planning to seek Cabinet nod before bids can be invited for the two sites.

Even though the limestone deposits at Nauradhar in Sirmaur district have very high level of purity, suited for making the premium white cement, the locational disadvantage is the biggest hindrance. “Some companies, including one based in Jaipur, have evinced interest in setting up white cement plant at the site but because of the site being in an interior part, providing power and road connectivity is an issue,” admitted Rajinder Singh, Director, Industries. He hoped that these issues would be resolved and the white cement plant is set up through open auction.

The state government on August 5 last year decided to cancel its agreement with India Cement Ltd for setting up a plant at Gumma in Shimla district. Sources said India Cement had failed to start work and had been issued a notice. The company later conveyed to the Industry Department its unwillingness to set up the cement plant.

As such the Industry Department could soon hold open auction of the white cement plant at Nauradhar and of the Gumma plant earlier allotted to India Cement Ltd. “Had the issue of the cancellation of the proposed cement plant in Chamba earlier allotted to Jai Prakash Associates Ltd (JAL) been decided by the court, we would have put up this site as well for auction,” said an official.

The project in Chamba had been allotted to JAL in 2006 and an MoU had been signed on February 2007 for the setting up of a 2 million tonnes per annum capacity cement plant. JAL moved court on the plea that some other companies had been given time for completion but their project was cancelled.

The committee headed by the Chief Secretary had decided to provide time to Lafarge India Pvt Ltd for setting up its plant at Alsindi in Karsog and Harish Cement Plant at Sundernagar in Mandi till March 2016.

Some of these companies have already invested a lot of money, but could not start operation due to various factors, including clearances from different agencies like the Ministry of Forest and Environment. In some cases, locals have moved court against the projects, citing loss of their agricultural land and adverse impact on the health of the public.