Bargarh MP seeks Centre's help to revive cement plant as shutdown deadline looms

In his letter submitted during a recent visit to New Delhi, Purohit warned that the plant's closure would have serious socio-economic consequences for Bargarh district and western Odisha's industrial economy.

He urged the Centre to facilitate discussions involving the Odisha government and the Adani Group for the unit's revival.

The development follows ACC Limited's formal communication of its decision to shut the plant.

The company cited exhaustion of limestone reserves in its captive mines, rising clinker production costs, and the ageing condition of the facility as reasons, stating continued operations were no longer economically viable.

ACC outlined retrenchment compensation and other dues for workers following the mandatory notice period.

Workers remain uncertain about the plant's immediate future.

While the earlier closure notification fixed the cessation date, there has been no clear communication on whether the shutdown will proceed as scheduled, adding to anxiety among employees and their families.

The proposed closure has revived concerns over Bargarh's shrinking industrial base.

The district has already witnessed the closure of several major establishments.

Workers and local stakeholders fear the cement plant's closure could further weaken the district's industrial ecosystem.

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

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

Bargarh MP Pradeep Purohit, who was photographed alongside national BJP president Nitin Nabin during his recent Delhi trip, submitted a detailed letter to Union Commerce and Industry Minister Piyush Goyal. In the correspondence, Purohit emphasized that the Bargarh Cement Works at Bardol, which has been operating for nearly six decades, contributes significantly to the industrial economy of Bargarh district and western Odisha. He warned that the closure of the unit would trigger serious socio-economic repercussions, affecting not only the workforce but also a wide network of ancillary activities.

Purohit highlighted that approximately 1,000 employees are directly engaged at the plant, while more than 5,000 families—including transporters, contractors, traders, micro‑small‑medium enterprises (MSMEs) and other service providers—depend on its operations for their livelihoods. He urged the Centre to initiate immediate talks involving the Odisha state government and the Adani Group to explore pathways for revival and modernisation of the facility.

The MP also called for a proposed investment of around ₹2,000 crore to upgrade the plant with advanced equipment. According to his letter, such capital infusion could enhance production efficiency, improve competitiveness in the market, and secure the long‑term viability of the unit.

The appeal comes nearly two months after ACC Limited formally communicated its decision to cease operations at the Bargarh Cement Works, with the shutdown slated for August 19, 2026. ACC attributed the decision to the depletion of limestone reserves in its captive mines, escalating clinker production costs, and the ageing condition of the plant’s infrastructure. The company asserted that continued operation was no longer economically viable and had already prepared a retrenchment compensation package and other statutory dues for workers, to be paid after the mandatory notice period.

Despite the official notice, workers have reported a lack of clear communication regarding whether the shutdown will indeed proceed on the announced date. This ambiguity has heightened anxiety among employees and their families, who remain uncertain about their immediate future and the timing of any settlement.

The looming closure has revived long‑standing concerns about the erosion of Bargarh’s industrial base. Over the past few years, the district has seen the shutdown of several major industrial units, notably the fertiliser factory, the sugar mill, and the spinning mill. Local stakeholders and trade unions fear that the loss of the cement plant would further destabilise the district’s industrial ecosystem, jeopardising the numerous businesses that rely on the plant for raw material supply, logistics, and ancillary services.

Originally commissioned as Hira Cement in 1968, the facility underwent several ownership transitions. It was first brought under the purview of the Odisha Industrial Infrastructure Development Corporation (IDCO), later privatised, and eventually acquired by ACC Limited, which has operated the plant for several decades.

As the August 19 deadline approaches, the outcome hinges on whether the Union Ministry of Commerce and Industry, the Odisha government, ACC Ltd, and potential investors such as the Adani Group can converge on a viable revival plan. Until then, workers, their families, and the broader community await clarity on the fate of the Bargarh Cement Works