3 cement firms in Himachal served notice after price hike

Ambika Sharma

Solan, April 21

Facing flak from the Opposition after Rs 30 increase in the price of a cement bag, the Geological Wing of the Department of Industries today served a show-cause notice on three major manufacturing companies.

Irregularities pointed out

Several irregularities have been pointed out in the notice, including extraction of less mineral than the approved quantity, causing loss of royalty as well as taxes to the state exchequer.

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A slew of irregularities have been pointed out in the notices, including extraction of less mineral than the approved quantity, which were causing the loss of royalty as well as taxes to the state exchequer.

It has been learnt that as against 60 per cent capacity utilisation, the manufacturers are utilising 52 per cent capacity, causing revenue loss to the state government as well as loss of work to the transporters.

A 30-day period has been granted to the three unit managements to explain their position, failing which further action, as per the norms, will be initiated.

A committee comprising Directors of Industries, Department of Environment, Science and Technology, Labour Commissioner, Excise Commissioner, member secretary of the State Pollution Control Board, Deputy Commissioner, SP, Conservator of Forests and geologists had inspected the mining lease areas of the manufacturing companies in February.

Eight manufacturing units of Ambuja Cements Ltd, ACC and Ultratech at Darlaghat, Nalagarh and Bagha were examined. The report was submitted to the Assistant Chief Secretary some days ago but action was still awaited.

The companies had raised the cement prices by Rs 30 per bag two days ago. This caused embarrassment to the government, as the Industry Minister had in February claimed to do so.

A team of mining officials also visited the mining areas of the units this evening at Darlaghat to take stock of the situation.

The committee noted that plantation done by the company above the Kashlog mining lease area was removed and mineral excavated from the site in violation of the plan. Various irregularities have been pointed out in the mining area, too.

In the past about four months, the price of a cement bag has gone up by nearly Rs 50. The biggest increase of Rs 30, which was effected two days ago, highlighted the lack of control over the cement companies.

The copy of notices assessed by The Tribune reveals that similar irregularities pertaining to the mining area and the lack of lesser extraction of minerals have been pointed out in the manufacturing units of UltraTech Cement Ltd at Baga village as well as two manufacturing units of ACL at Darlaghat.