Ambuja Cement gets govt notice

Pratibha Chauhan

Tribune News Service

Shimla, July 29

The government has issued a show-cause notice to Ambuja Cement for not adhering to the condition of converting at least 50 per cent of the clinker into cement in the state at its unit-II in Darlaghat.

It is reliably learnt that Principal Secretary (Industry) RD Dhiman has been asked to submit action taken report about the total loss of revenue on account of less royalty and various taxes to the government. Ambuja Cements is yet to file its reply to the notice issued to it by the Industry Department only a few days back.

“It has come to the notice of the government that Ambuja Cement has been converting only 17 per cent clinker into cement at its plant at Darlaghat, which has resulted into the loss of revenue to the government,” said Industry Minister Mukesh Agnihotri. He said the department had been asked to compile a report of the total loss to it on this account.

The company has been asked to explain its position as to why it has violated the agreement that it entered into with the government. If the reply given by the company is found to be dissatisfactory, the permission to operate unit-II could also be withdrawn. As per the agreement signed between the government and Ambuja Cement for unit –II, atleast 50 per cent clinker had to be converted into cement within the state.

Even though it was in 2008 that Ambuja Cement had entered into an agreement for its first unit but the condition for ensuring that at least 50 per cent of the clinker was converted into cement was imposed for its unit-II, which came into production recently. This condition has been imposed on unit-II of the Ambuja Cement and Jay Pee but ACC and Ambuja unit –I are not covered under it, as these were set up much earlier.

Though the state government gets a royalty on the extracted limestone but in case 50 per cent of the clinker is converted into cement, the entry of other goods such as flyash and gypsum used in making cement into the state would bring revenue by way of Goods Tax.

The production of cement had also been hit due to shortage of flyash at the Ropar thermal plant. Ambuja Cement had run into trouble in June 2014 for installing a race ball trill without the consent to operate. It had been issued notice by the State Pollution Control Board which had issued a notice and asked why the unit should not be closed.