Grasim cement plant to be shifted

Giving into pressure from villagers in Mandi district of Himachal Pradesh, Aditya Birla group's (Grasim Cements) proposed Sundernagar cement plant will now set up in a nearby less-populated area.

But the shifting would cost the company Rs 200 crore more and raise the total cost of the plant to Rs 1,200 crore.

Although the exact new location has not been identified, the search is on, say company officials.

The opposition was from Chambi and Khatarwari near Sundernagar. "In view of public demand to set up the plant in a less populated area we have decided to shift the proposed site," said RM Gupta, director, Harish Cement Ltd, a subsidiary of Grasim cements.

The state government had signed a deal with Harish Cement Ltd in 1993 to set up the plant with an annual capacity of some 1.27 million tonne of cement. However, work could not start on the project due to the weak financial condition of the company.

In September last year Grasim Cements decided to bail out Harish Cement Ltd in September and the work was awarded to Grasim cements.

However, locals and environmentalists started protesting against the proposed site which they said was thickly populated. Officials of Grasim company said once work on the proposed Sundernanagar cement plant began, production would start in about 22 months.