The Himachal Pradesh cabinet today cancelled the allotment of a cement plant to Jaypee Group in Chamba district as the company failed to meet the extended deadline to start production.
Official sources said the government was not satisfied with the reply of the company to a show cause notice served on it by the industries department sometime ago. The MoU for the cancelled project was signed in February, 2007.
The Rs 800-crore project with a proposed production capacity of 2 million tonnes per annum was to begin operations within five years after receiving clearance from the Environment Ministry. The plant was expected to provide direct employment to over 1,000 persons.
Sources said the industries department had also served notices to other companies who have been allotted cement plants in the state.
The cabinet, which met under the chairmanship of Chief Minister Virbhadra Singh, also approved the Excise Policy for 2014-15, which would now be tabled in the Assembly.
