The Lok Sabha today gave its nod to a Bill paving the way for the closure of Dadri Cement Factory and auction of its premises.
The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Amemdment Bill was passed by a voice-vote.
Heavy Industries Minister, Sontosh Mohan Dev, said the government had decided to close down seven cement factories of CCL, which had become unviable due to obsolete machinery and mounting accumulated losses.
He said since the Dadri Plant was nationalised by an Act of Parliament in 1981, and as per Supreme Court decision, the government introduced a separate legislation to close down the unit, while other plants would be closed under normal procedure.
He said due to obsolete machinery, no private company was interested in running the units, but were interested in land.
The government would auction the land and funds would be utilised to settle dues of workers, the Minister said.
The remaining funds would be ploughed back for modernisation and expansion of remaining three cement plants of CCI.
Supporting the Bill, Mohan Singh (SP) said in a changed scenario, the government should allow the private sector set up more cement units to enhance the supply while regulating prices.