Shimla, February 19: The government today cancelled the licence issued to JP Cements for a cement plant in Chamba district for failing to show satisfactory progress. The decision was taken by the Cabinet, chaired by Chief Minister Virbhadra Singh, here today. The Cabinet today monitored the progress of five companies that had been given approval for setting up of cement plants. While it was decided to cancel the licence to JP Cements, the other four companies have been asked to show progress by May 31 or face cancellation. Show-cause notices had been issued to five companies, Harish Cements, India Cements, Lafarge and two plants to be set up by JP Industry. Finding the reply given by JP Cements for its proposed plant in Chamba unsatisfactory, it was decided to cancel the licence. All five companies had been given extension till March by the Industries Department. A sub-committee had been constituted under the chairmanship of the Chief Secretray to look into the progress made by these companies. The Cabinet also took into account the report presented by this committee. The companies had sought time to operationalise these plants. Lafarge was to set up its plant at Alsindi in Karsog, India Cements at Gumma in Shimla district, Harish Cements at Sundernagar in Mandi and JP Cements was to set up one plant in Chamba and expand its plant at Bagha. The Cabinet also decided to enhance the low income limit from the Rs 17,000 to Rs 35,000 for availing benefits under various government schemes. The Cabinet also gave approval to five subdivisions in Haroli, Sujanpur, Salooni, Dharampur and Mandi (rural). It was also decided to create two nagar panchayats of Baijnath-Paprola and Ner-Chowk in Mandi. The Cabinet also gave its nod for the upgrade of 27 primary health centres and community health centres in the state. Cabinet decisions Four firms asked to show progress or face cancellation Low income limit enhanced to Rs 35,000 Nod to subdivisions in Haroli, Sujanpur, Salooni, Dharampur and Mandi (rural) 27 primary health centres and community health centres to be upgraded