Binani Cement suspend operations at 2 plants in Rajasthan

Demanding relaxation from the Rajasthan government for mode of payment of tax dues to the tune of Rs 154.51 crore, Binani Cement has suspended operations at its two plants in the state in Sirohi and Sikar districts.
The state government had last month attached the steel-maker's 26 bank accounts under VAT Act for recovering the tax dues and told the banks to not allow the company to withdraw money as the sales tax on it was due since 2007.
The company today said the fate of over 3,000 employees and their families now rest with the state government because with no production and sales at both the units, they are grappling with the challenges of living with mounting expenses.

"We have requested the state government to allow us to pay the due tax in 36 monthly installments as due to financial losses the company is not able to make onetime payment," Binani Cement President Corporate Affairs R S Joshi told reporters here today.
He said that as a consequence of the freezing of the bank accounts, the company is not able to conduct its daily business and being forced to suspend operations.
"The company is not able to bear operational cost, transportation and other expenses because of the freezing of our accounts by the government.

"Suspension of operation at both the units also caused a revenue loss of 60 crore to the government and the rate of cement also jumped by 24 per cent in one month after the production at our two units was stopped," he claimed.

He informed that against the total due of Rs 173 crore, the company has paid some amount by January this year and has requested the government payment of remaining Rs 154.51 crore in 36 monthly installments.
"We have not received any positive response from the government so far," he said, adding that the government's apathy was directly and indirectly affecting livelihood of nearly 10,000 people as well as local economy.
When contacted, Sales Tax Department Deputy Commissioner Kanti Lal Jain said that no decision on the request of the company was take so far.