The minister also accused the Dhumal government of failing to act against the offenders despite the Himachal High Court fining the Jaypee group for setting up the cement plant at Bagheri in Solan district in violation of norms.
"Irrespective of the fact that the corporate company was small or large, any company which has violated the law and held accountable by the High Court must face action and in such a situation the state government has a lot to explain to the public," Sharma told reporters on the sidelines of a function here.
"The Dhumal government has clearly failed to take action against Jaypee and I have reasons to suspect that it is in collusion and connivance with the group and has overlooked the misdeeds of the company," the minister, who holds the commerce and industry portfolio, said.
Sharma's attack comes weeks after Chief Minister P K Dhumal accused the Congress of clearing the company's proposal to set up the cement plant during its tenure in 2004.
"Congress cleared the company's proposal on September 16, 2004. A highly under-valued capital investment was accepted against actual investment, besides allowing land diversion of nearly 325 bighas," Dhumal had alleged.
Sharma also lashed out at the state government for the "long delays" in execution of central government projects and upbraided it for "failing to run the public distribution system (PDS) in a proper manner".
"The state government simply accuses the Centre of discrimination against BJP-ruled states. The Centre does not control the PDS and it is for the government to explain as to why it has failed in the state," he said.