Ambuja, ACC cement plants shut operations till further order

The management of ACC Cement Plant at Gagal and Ambuja cement Limited at Darlaghat have decided to shut their operations from Thursday.

Shimla: Citing the reason for the rising operational cost and prevailing adverse market conditions, ACC Cement Plant at Gagal and Ambuja cement Limited at Darlaghat have decided to shut their operations from Thursday. The two plants were taken over by the Adani group recently.

Himachal Pradesh Chief Secretary, RD Dhiman said, "It is a matter between the company management and the truck union. This matter is going on for many days and the demand of the company is that the transportation cost should be reduced but the truck unions want to increase it. The district administration has been ordered to resolve the matter. The government will not allow the closure of the plant and the matter will be resolved soon."

The company issued a notice stating that transportation costs along with the prices of raw materials are resulting in loss which is directly affecting its market share. It is costlier to supply cement in hilly areas as compared to the supply in plains. The reason for this is the transportation cost, which is higher in Himachal than in plain states like Delhi or Punjab.

The opposition and the public raised questions on the companies regarding the expensive cement because, despite the production in Himachal, cement is expensive in the state, while the same cement is cheap in states like Punjab, Delhi and Haryana.

"The company was asked to reduce the freight fare. Work is being done on the old price from the year 2019 and even before buying the company by Adani group, it was getting the freight done at Rs. 10 per kilometre, but now the company is talking about the freight for Rs. 6 per kilometre," head of the Solan district truck operator, Jaidev Kaundal said

Sources said that Chief Minister Sukhwinder Singh sought a report from the officers on the reasons for the rise in cement prices adding that he was unhappy over the issue.