India: The government has issued a show-cause notice to Ambuja Cement for not adhering to the condition of converting at least 50% of the clinker it produces into cement in Himachal Pradesh at cement plant in Darlaghat, according to The Tribune, Himachal Pradesh.

Principal secretary of industry RD Dhiman has reportedly been asked to submit an 'Action Taken' report about the total loss of revenue on account of the reduced royalties and various taxes to the government.

"It has come to the notice of the government that Ambuja Cement has been converting only 17% of its clinker into cement at its plant at Darlaghat, which has resulted into the loss of revenue to the government," said industry minister Mukesh Agnihotri. He added that the department had been asked to compile a report of the total loss to it on this account.

Ambuja Cement has been asked to explain why it has violated the agreement that it entered into with the government. If the reply given by the company is found to be unsatisfactory, the permit to operate the plant could be withdrawn. As per the agreement signed between the government and Ambuja Cement for the plant, at least 50% of the clinker has to be converted into cement within the state.