India: Himachal Pradesh cabinet withdraws Jaiprakash MoU

India: Himachal Pradesh cabinet withdraws Jaiprakash MoU
Published: 30 May 2014


The state cabinet of Himachal Pradesh (HP) has cancelled the Memorandum of Understanding for a 2Mta cement plant planned by Jaiprakash Associate Ltd's (JAL) for failure to launch construction.

The Times of India reported that the decision to withdraw the MoU, originally signed on 1 February 2007, was taken a few days ago by the Industries department.  With many cement companies failing to set up their projects, the state cabinet in May last year decided to issue notices to Harish Cements, Lafarge India Pvt Ltd, India Cements and JAL for failing to set up cement plants, despite the government having granted approvals many years ago.  The JAL plant was to be set up in the Chamba district of HP.

Following the cabinet decision, the Department of Industries had issued show-cause notices to these firms. The department said it had examined their replies which were then forwarded to the state government. The reply submitted by JAL was deemed unsatisfactory, and therefore the cabinet opted to cancel the MoU in February. Confirming the development, Industries' Minister Mukesh Agnihotri said the cancellation still stands.