Cement plant forced to scale down operations

  • 12/02/2014

  • Tribune (New Delhi)

Non-renewal of Mining Lease The Darlaghat-based cement plant of Ambuja Cements Limited (ACL) has been forced to shut its operations since Monday following pending clearance of its mining lease. The action follows the issuance of a notice by the Ministry of Environment and Forests (MoEF) on January 22 where the plant has been directed to stop its operations with immediate effect as it had failed to procure the mandatory clearance from the National Wildlife Board (NWB). The MoEF has failed to reconstitute the NWB after the earlier board was dissolved in September last year. The MoEF had stipulated all projects falling within a purview of 10-km radius of a sanctuary or a national park to seek clearance from the NWB in 2012. This had forced several projects, including existing cement plants, to seek a clearance from the State Wildlife Board (SWB) and then the NWB. The ACL’s Darlaghat plant which manufactures 5.5 metric tonnes cement per annum had not only applied for clearance of its existing mining lease, but also for expanding its capacity to 7.5 metric tonnes. Its case had been approved and recommended by the SWB in its meeting held in December. With the general elections round the corner, the plant management was having anxious moments about the delay in reconstituting the board. Officials wishing anonymity said they had represented their case before the MoEF and also to the state government to provide some relief as the clearance from the NWB was neither time-bound nor they were given an opportunity to present their stand. With constitution of the NWB failing to be a priority of the Union Government, the plant management feared the impasse could last for months, thus leading to revenue loss of lakh per day. Revenue of Rs 18 crore is generated in a single month by the plant both for the state and the Centre. The plant provides direct and indirect employment to thousands of persons, including 4,000 truckers. All manufacturing processes have been halted since Monday, thus creating trouble for the transporters who dwell on daily transportation work to repay their loans availed to buy trucks. At the receiving end Revenue of Rs 18 crore is generated in a single month by the plant both for the state and the Centre. The plant provides direct and indirect employment to thousands of persons, including 4,000 truckers. All manufacturing processes have been halted since Monday, thus creating trouble for the transporters who dwell on daily transportation work to repay their loans availed to buy trucks.