Bargarh MP seeks centre’s help for revival of cement plant as closure date nears

Key points

• Originally established as Hira Cement in 1968, the Bargarh Cement Plant gradually came under the control of the Odisha Industrial…
• While more than 5,000 families, including transporters, contractors, traders, MSMEs and other ancillary businesses, are dependent on its operations, he…
• The Bargarh MP urged the Centre to facilitate discussions involving the Odisha administration and the Adani Group for revival of…
• The proposed closure has also revived worries over Bargarh’s shrinking industrial base.

BARGARH: Amid the uncertainty surrounding the proposed closure of the Bargarh Cement Works at Bardol, local MP Pradeep Purohit has written to Union Commerce and Industry Minister Piyush Goyal seeking urgent steps for revival and modernisation of the almost six-decade-old industrial unit.

In his letter submitted to the Union minister during his recent visit to New Delhi, Purohit highlighted the plant’s contribution to Bargarh district and western Odisha’s industrial economy and warned that its closure would have serious socio-economic consequences. While more than 5,000 families, including transporters, contractors, traders, MSMEs and other ancillary businesses, are dependent on its operations, he claimed almost 1,000 employees are directly associated with the plant.

The Bargarh MP urged the Centre to facilitate discussions involving the Odisha administration and the Adani Group for revival of the unit. He also called on a proposed investment of around `2,000 crore for modernisation, including installation of advanced equipment. It he said could improve production efficiency, competitiveness and the plant’s long-term viability.

The development comes nearly two months after ACC Limited had formally communicated its decision to shut the Bargarh plant from August 19, citing exhaustion of limestone reserves in its captive mines, rising clinker production costs and the ageing condition of the facility. The firm stated continued operations were no longer economically viable and had outlined retrenchment compensation and other dues for workers following the mandatory notice period.

What happened

However, workers remain uncertain concerning the plant’s immediate future. While the earlier closure notification had fixed August 19 as the date for cessation of operations, there has been no clear communication to workers on whether the shutdown will proceed as scheduled, adding to the uncertainty among employees and their families.

The proposed closure has also revived worries over Bargarh’s shrinking industrial base. The district has already witnessed the closure of several major establishments, including the fertiliser factory, sugar mill and spinning mill. Workers and local stakeholders fear that the cement plant’s closure could further weaken the district’s industrial ecosystem and affect numerous businesses dependent on it.

With the MP now seeking fresh intervention for the cement plant’s revival, it remains to be seen if the Centre, the state government and the management can work out a solution to keep the unit operational.

Originally established as Hira Cement in 1968, the Bargarh Cement Plant gradually came under the control of the Odisha Industrial Infrastructure Development Corporation (IDCO) before being privatised and subsequently acquired by ACC Ltd.