Bargarh MP Urges Centre to Revive Cement Plant Before August 19 Closure

Bargarh MP Pradeep Purohit has appealed to Union Commerce and Industry Minister Piyush Goyal for urgent intervention to revive the Bargarh Cement Works at Bardol, whose closure is slated for August 19. The MP submitted his letter during a recent visit to New Delhi, emphasising that the nearly six‑decade‑old plant has been a cornerstone of Bargarh district and western Odisha’s industrial economy. He warned that shutting the facility would trigger serious socio‑economic repercussions for the region.

ACC Limited, which operates the plant, announced the shutdown citing the exhaustion of limestone reserves in its captive mines, rising clinker production costs and the ageing condition of the facility, declaring that continued operations are no longer economically viable. The company said it has outlined retrenchment compensation and other dues for workers following the mandatory notice period. Despite the announcement, workers remain uncertain about the exact timing of the shutdown, as no clear communication has been issued confirming whether the August 19 date will be upheld.

In his letter to the Union minister, Purohit highlighted that nearly 1,000 employees are directly linked to the cement works, while more than 5,000 families — including transporters, contractors, traders, MSMEs and other ancillary businesses — rely on the plant for their livelihoods. He urged the Centre to facilitate discussions involving the Odisha government and the Adani Group to explore revival options. The MP proposed an investment of around ₹2,000 crore for modernisation, including the installation of advanced equipment aimed at improving production efficiency, competitiveness and the unit’s long‑term viability.

The Bargarh Cement Plant traces its origins to 1968 when it was established as Hira Cement. Over the years it came under the control of the Odisha Industrial Infrastructure Development Corporation (IDCO), was later privatised and eventually acquired by ACC Ltd. The MP noted that the unit has contributed significantly to the district’s industrial base, which has already seen the closure of the fertiliser factory, sugar mill and spinning mill in recent years.

What prompted the proposed closure?

ACC Limited cited exhaustion of limestone reserves in its captive mines, rising clinker production costs and the ageing condition of the facility as reasons for declaring continued operations no longer economically viable. The company added that it has outlined retrenchment compensation and other dues for workers following the mandatory notice period.

What is the proposed investment for revival?

The Bargarh MP proposed around ₹2,000 crore for modernisation, including installation of advanced equipment to improve production efficiency and competitiveness. He argued that such investment could enhance the plant’s long‑term viability and help it compete in the market.

How many people depend on the plant?

Nearly 1,000 employees are directly associated with the plant, while more than 5,000 families — including transporters, contractors, traders, MSMEs and other ancillary businesses — are dependent on its operations. The MP stressed that the livelihood of these families is tied to the plant’s continued functioning.

What is the current status for workers?

Workers remain uncertain about the plant’s immediate future. Although an earlier notification fixed August 19 as the date for cessation of operations, employees have not been clearly informed whether the shutdown will proceed as scheduled. The lack of clear communication has added to anxiety among the workforce and their families.

Why is the closure a concern for Bargarh?

The closure adds to fears over Bargarh’s shrinking industrial base, with the district already having lost the fertiliser factory, sugar mill and spinning mill. Local stakeholders worry that the cement plant’s exit could further weaken the district’s industrial ecosystem and affect numerous businesses that depend on it.

What discussions are being proposed?

The MP urged the Centre to facilitate discussions involving the Odisha government and the Adani Group for revival of the unit. He believes that a tripartite dialogue could pave the way for a feasible revival plan and secure the necessary investment.

When was the plant originally established?

The Bargarh Cement Plant was originally established as Hira Cement in 1968 before coming under IDCO, being privatised and later acquired by ACC Ltd. This six‑decade‑old facility has been a longstanding part of the region’s industrial landscape.

Why was the letter written to the Union minister?

The letter was submitted to the Union minister during Purohit’s recent visit to New Delhi, highlighting the plant’s contribution to Bargarh district and western Odisha’s industrial economy and seeking urgent steps for revival and modernisation.

While the August 19 deadline looms, the MP’s appeal has injected a fresh sense of possibility into the debate. Stakeholders across Bargarh await a response from the Centre, the state government and ACC Ltd, hoping that a negotiated solution can preserve jobs, sustain ancillary businesses and retain a vital piece of western Odisha’s industrial heritage.