Himachal Budget Session: Govt mulls splitting auction of mining leases to lure investors

Shimla, February 26

With investors not coming forward to set up cement plants due to the huge upfront money, the government is proposing to split the auction of mining leases so that the projects become economically viable.

Huge upfront money a deterrent

The government tried to auction Alsindi mineral deposits in Karsog area for the setting up of a cement plant, but no company came forward as the upfront money involved is huge. If the mineral deposits are split into chunks and auctioned, then the projects will become feasible. Harshwardhan Chauhan, Industries Minister

Replying to a query by Karsog MLA Deep Raj in the Assembly today, Industries Minister Harshwardhan Chauhan said the huge upfront money, running into several crores, had emerged as a major hindrance for setting up of cement plants in Himachal. “Now we will break up and auction the mining sites for the setting up of cement plants so that the amount to be paid is not huge,” he said.

“The government tried to auction Alsindi mineral deposits in Karsog area for the setting up of a cement plant but no company came forward as the upfront money involved is huge,” he said. “If the mineral deposits are split into chunks and auctioned, then the projects will be become feasible,” he said.

“We have hired a company which will make the guidelines for splitting the mining deposits for being auctioned. During the Investors Meet at Dubai, a company has evinced interest in exploiting the deposits near Kangra-Chamba-Pathankot as the transportation cost is not very high,” the minister informed the House.

He said an MoU was signed with Lafarge for the setting up of a cement plant at Alsindi. A letter of intent (LOI) was issued in 2017. “Changes were made in the Major Mineral Rules by the GOI to auction and not lease out the mineral deposits. Even though they had obtained forest clearances for Phase I, since the company failed to complete the formalities, their LOI has been cancelled. The company has now moved to the High Court,” he said.

Churah MLA Hans Raj also raised the issue of setting up a cement plant in Chamba district. Replying to a query by Satpal Singh Satti, KL Thakur and JR Katwal, the Industries Minister informed the House that a total of 67 industrial estates had been developed in Himachal, having 3,594 plots.

Chauhan said the government would not acquire land for setting up of industrial estate where the money for developing the plots was huge. The Industries Department would see how best some of the vacant lying plots in some industrial areas can be utilised.