Uncertainty over coming up of new cement units in HP

Slowdown in realty, infrastructure sector to blame

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The state government has even failed to secure bidders for its much-touted Broh Shind limestone deposit in Chamba district whose e-auction had been invited on September 25, 2018. Despite re-inviting bids in December 2018 and extending the date of securing tender document to March 15, 2019, no bidder has come forward

Ambika Sharma

Tribune News Service

Solan, November 28

With the existing cement units in Himachal Pradesh failing to utilise their optimum capacities, there is an increasing concern whether new cement units would invest in the state after signing MoUs in the recently held Global Investors’ Meet at Dharamsala.

Major cement manufacturers such as Ambuja, Ultratech, ACC and state-owned Cement Corporation of India have their plants in the state but the prospects of new plants coming up appear bleak. FCI Aravali Gypsum and Minerals India Ltd., which had signed an MoU with the state government for setting up a Rs 605-crore cement manufacturing unit in Nohradhar in Sirmaur district in February 2019, had to halt its operations following opposition from local villagers. They had obtained a stay from the high court in June this year.

The mining wing of the Industries Department had identified usable reserves of 3.87 million tonne white limestone in five blocks of Datwari, Chunvi, Ghandori, Nohra-Hingda and Bhanra-Sangoli in 1983. The department had thereafter invited applications from interested parties for setting up a plant at this site at Nohradhar. The FCI had applied for a licence for setting up this plant in March 2016 following which the letter of intent was issued.

The state government has now signed an MoU with Dalmia Cements (Bharat) Ltd for setting up a Rs 2,500-crore 4 million tonne per annum capacity integrated cement plant in the state. This plant is expected to provide employment to 200 persons.

With the realty and infrastructure sector battling a recession for the past few years, some of the major existing cement units are facing a challenge of production at their optimum capacities. A senior official of a major cement manufacturer said their plants were operating at 65% of the installed capacities for the past about two years in the state and their growth rate had also taken a dip.

The state government has even failed to secure bidders for its much-touted Broh Shind limestone deposit in Chamba district whose e-auction had been invited on September 25, 2018. Despite re-inviting bids in December 2018 and extending the date of securing tender document to March 15, 2019, no bidder has come forward. This proposed plant would have provided employment to a large number of people. The state government had also relaxed the key norm of converting 25% clinker into cement within the state to lure bidders.

Director Industries Hansraj Sharma said all efforts were being made to facilitate cement units. He said Dalmia Cements had availed a prospecting licence in 2009 though norms have changed after 2015 and sites were now being auctioned. He said they have now applied for a letter of intent for setting up a unit in Shimla district.

He said state-level levies like additional goods tax and certain goods carried by road led to higher cost of cement in the state which acted as a deterrent for some units to invest in the state.