Mining rules to decide fate of cement plants

Pratibha Chauhan

Tribune News Service

Shimla, January 30

The decision on the fate of four cement plants that have failed to become functional despite being approved by the government several years ago will now be taken in accordance with the new Central Mining Rules.

The state government had cancelled one cement plant that had been issued show-cause notice by the Industry Department for the inordinate delay in completing the projects. While one project at Chamba was cancelled after the Cabinet gave its nod, a final decision on other four is still awaited.

“I have asked the department to examine the cases of the four cement plants which had filed their replies to the show-cause notices issued by the government,” said Mukesh Agnihotri, Industry Minister. He said he had asked the department to see whether these projects qualify to be granted an extension or will have to be cancelled.

Prior to this, it was the committee headed by the Chief Secretary, which used to take decisions on granting extension to cement plants if they had cited valid reasons. Since no final decision had been taken after receiving the reply from the four cement companies, their fate is now likely to be decided as per the new Central Mining Rules.

Notices had been issued by the government to cement plants, including the one by Lafarge at Alsindi in Karsog of Mandi, Jaiprakash Associate Ltd (JAL) plant in Chamba, India Cement Plant at Gumma and Harish Cement Plant at Sundernagar. JAL had also taken permission to extend their existing cement plant at Bagha.

The Cabinet at its meeting held on February 2014 cancelled the projects allotted to JAL in Chamba district. The project had been allotted to JAL on February 1, 2007, for setting up a two million tonne per annum capacity cement plant. The plant was to come up at an estimated cost of Rs800 crore.

The company could not start production as it failed to obtain the environmental and other clearances.

The other three companies had also been given time till May 2014 to expedite work on the allotted projects, failing which their licences could be revoked. The other three companies too had filed their replies to the department’s notice but the state government did not take any decision on their fate. The vast limestone deposits at Baroh-Sindh in Churah tehsil of Chamba district were to be used for cement production. The plant was to provide direct employment to 1,000 and indirect employment to 5,000 persons.