Jamshedpur, June 23: The state government?s failure to give statuary clearances for the expansion and modernisation programme of the Associated Cement Companies (ACC) in Chaibasa has delayed the project.

The Rs 285-crore project was supposed to be operational from April this year.

The state government?s delay in renewing the two limestone mining leases of the company, apart from few other statutory clearances has stalled the project. The company?s new infrastructure and other facilities under its expansion programme is ready to be operational.

But delay on part of the state government to renew its mining leases and other statutory clearance have delayed the project?s commissioning.

And due to non-clearance of mining leases and other mandatory permissions, the project cost of the expansion programme has already escalated by over Rs 50 crore taking the total project cost to about Rs 340 crore.

?ACC officials from Chaibasa have been visiting Ranchi at least thrice a week. But the officials have not been able to get the work done. Unfortunately, there is no hurry on part of senior officials to give approval,? an official of the mining department who has been interacting with the company functionaries said.

One of the oldest industrial units in Jharkhand, the Chaibasa unit of ACC was established way back in 1946.

The ACC management decided to make investments in the unit to turn round the losses it has been incurring.

Work on the expansion project began in December 2003. But one of the major obstacles for ACC is getting their limestone mining leases renewed so that it could be used for its production. The company has plans to boost production in the clinker unit by about 1.2 lakh MT per annum from the present 3 lakh MT per annum.

Vice-president of ACC and in-charge of the Chaibasa plant, A. Roy Choudhury, admitted that there has been cost escalation of the expansion project. ?But the company is receiving cent per cent cooperation from the state government for its expansion programme,? he said.

The miffed ACC officials said, ?We have to immediately upgrade the mines as we would require more limestones for our new production target. And the delay in granting us permission is bound to have an impact on the cost of the project.?