Replying to a question by Congress legislator Asha Kumari in the state assembly, the minister said that an MoU was signed with Jai Prakash Associates Limited in 2007, but allotment was cancelled in 2014 as the company failed to achieve various milestones specified in the contract.
Jai Prakash Associates, which had moved court against the decision, has now agreed to withdraw all cases and has conveyed its decision to the government.
He said eight companies had applied for the plant and a final decision will be taken soon.
Agnihotri said that Chief Minister Virbhadra Singh had already directed to set up a cement Plant in Chamba district and even senior BJP leader and MP Shanta Kumar had made a request in this regard.
Meanwhile, in reply to another question by Congress MLA from Baijnath, Kishori Lal, Agnihotri said the state government had decided to auction mining sites and the process would soon start from Kangra and Hamirpur.