Implement freight rates approved by Permanent Committee constituted by the High Court, Cement company urges
Darlaghat: Citing the reason of the rising operational cost and prevailing adverse market conditions, ACC Cement Plant Gagal and Ambuja Cements Limited at Darlaghat have decided to shut their operations from Thursday.
The two plants were taken over by the Adani group recently.
As per a notice issued on Wednesday, the management has stated that the cement plants were under severe pressure to reduce the cost of operation to sustain in the market and the high cost of transportation impacting plants adversely.
“In the current market scenario, due to the high transportation cost we are finding it very difficult to compete in the market and if this situation continues our plants will become unviable. We have been requesting you to reduce freight for transportation of our goods and material (cement, clinker and raw material) but due to your adamant attitude we are being compelled to pay exorbitant freight which is way higher than the prevailing market rates,” company letter read and further urged to implement the rates approved by the Permanent Committee of the Secretaries of Transport, Industries, Food and Civil Supplies and Finance with Director Transport as the member secretary, constituted by the Himachal Pradesh High Court.
The company has also informed its employees not to attend the duties with immediate effect till further instructions are issued late Wednesday evening.