Adani Group Cements Plants Shut In Himachal Pradesh. Company Says Negotiating With Transport Unions

Adani Group was incurring losses due to steep transportation costs in the hill state. The company had been negotiating with transport unions to bring down the costs

Barmana and Darlaghat Cement plants have a long presence in Himachal Pradesh and have contributed significantly to the economic prosperity of the local people and to the state’s revenue, said Adani Group.

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Adani Group, which has decided to indefinitely suspend operations at its two cement units in Himachal Pradesh, said that the company is making serious efforts to solve the problems. According to reports, the group was incurring losses due to steep transportation costs in the hill state. The company had been negotiating with transport unions to bring down the costs.

Adani Group in a statement said, “We are deeply aggrieved with the situation caused by the adamant stand of the truck unions in Himachal Pradesh. Our four decades old relationship with the people of Himachal Pradesh is not just about our manufacturing operations but also about the welfare of the communities of Barmana and Darlaghat. Himachal Pradesh is a state full of natural resources and deserves superior development. The people of the region deserve better cement price but it is not possible without the cooperation from transport unions. Higher transport cost has resulted in exorbitantly higher cement price to people of Himachal as compared to neighbouring states.”

Barmana and Darlaghat Cement plants have a long presence in Himachal Pradesh and have contributed significantly to the economic prosperity of the local people and to the state’s revenue, the company said.

The two firms, ACC and Ambuja, are among the largest employment providers (direct and indirect) in the state. However, the two cement plants of the group have gone unviable due to various inefficiencies in transportation. As a single entity now, we want to supply cement to the markets at prices that are competitive, and our intent is that cement from either company flow freely to the best-optimised network in the state. Transporters shouldn’t be concerned about management’s right to switch our brand-specific materials.

“Since fuel is a national resource, this would help Himachal Pradesh to become a greener state by saving fuel and also draw on synergies to serve customers efficiently. Our companies should be free to hire trucks wherever they are needed in India to facilitate interstate and interregional transportation, thus ensuring free market approach to best serve our consumers. What is even more unfortunate that local transport unions don’t allow other transporters to operate on competitive rates,” Adani Group clarified, while adding, this goes against the free market spirit.

There should be open tendering process for freight rates as per vehicle size, carrying capacity etc. Such matters can be resolved only by understanding the issues faced by all the stakeholders and not by blaming each other. We are making serious efforts to solve the problems being faced by the state.