The Dhumal Government has cancelled the controversial agreement by which the previous Virbhadra singh government had allocated 25 per cent quota of khair wood to a Kala Amb-based katha manufacturing unit. The decision to cancel the agreement was taken after the industrial unit failed to respond to the notice served on it last month. It was asked to show cause as to why the allocation of khair wood, which had not been found in order, be cancelled.