Fresh tenders invited for Chamba cement plant

SHIMLA: After failing to get desired response last time, Himachal Pradesh government has invited fresh tenders for the Chamba cement plant proposed in Churah sub-division. To ensure that the project attracts bidders, a decision has been taken to construct the road up to the project site on expenditure of around Rs 15 crore. A decision has also been taken to provide some other relaxation to the company expressing an interest in construction of the plant.Last time when bids were invited for the project, only one investor expressed interest.
As per revised conditions, 100% clinker will be manufactured within the state and 25% shall be converted into cement in the state. Investment of around Rs 1,000 crore is proposed in the project, which will generate employment for around 15,000 people, especially from Chamba district. However, the issue has been hanging fire for the last around 16 years.
The Broh-Sind belt of limestone in Chamba district is located 40 km away from Chamba, on Chamba-Tissa Road. The reserves, so far proved by drilling, are estimated to be 400 million tonnes while inferred reserve is about 850 million tonnes. Core recovery in most boreholes is about 60% and at places, it is 100%.
The project was first conceived in 2002, when Prem Kumar Dhumal was the chief minister. Then industries minister, late Kishori Lal spoke about it. Initially, the project was proposed to be given to L&T company but this could not happen. The then state government signed an MoU with Jai Prakash Associates on February 1, 2007 but it was cancelled on February 26, 2014.
The state government again invited applications in 2016 but only one bid was received. Now that the state government has addressed the issue which kept investors away, the state government has invited fresh bids for the project.