80-Year-Old Jhinkpani Cement Plant to Shut Down on August 16, 1,600 Workers Face Livelihood Crisis

 Jamshedpur: In a major setback to the industrial landscape of West Singhbhum district, ACC Limited has officially announced the permanent closure of its historic ‘Chaibasa Cement Works’ located in Jhinkpani. The management pasted a formal lockout notice on the plant’s gates, declaring that all operations will completely cease on August 16, 2026.

The sudden announcement has sent shockwaves through the region, putting the livelihoods of nearly 1,600 workers—comprising 74 permanent employees and around 1,500 contractual laborers—at immediate risk. Beyond the workforce, the closure is expected to severely impact a population of nearly 50,000 people across dozens of surrounding villages that depend on the plant’s ecosystem.

Three Key Reasons Behind the Closure

According to an official notice (Form-XIII) sent to the Secretary of the Ministry of Labour and Employment under the Industrial Relations Code, 2020, the company cited three primary technical and economic reasons for shutting down this pre-independence era plant:

• Depletion of Limestone Reserves: The local mines supplying limestone—the critical raw material required for cement production—have been completely exhausted.
• Skyrocketing Production Costs: Due to the complete unavailability of local raw materials, the clinker and material transport costs escalated to a point where running the plant became financially unsustainable.
• Obsolete Technology: Established in 1946 (exactly a year before India’s independence), the plant’s machinery and technology have become highly outdated, slow, inefficient, and non-compliant with modern industrial and environmental standards.

Compensation and Worker Welfare

Addressing the closure, Chaibasa Cement Works Plant Head, Raj Gurung, stated that the decision was taken with a “heavy heart” after extensive technical and economic evaluations. He emphasized that continuing production under current conditions was impossible.

To safeguard the interests of the affected employees, the management has assured that:

• Workers facing retrenchment will receive a full month’s salary in lieu of the notice period.
• A comprehensive retrenchment compensation package will be provided to eligible employees as per regulatory guidelines.

Local Impact: Silence in Villages, Fears of Migration

The announcement has cast a dense shadow of despair over Jhinkpani. As the first major industrial plant in West Singhbhum district shuts its doors permanently, local experts and residents fear a massive wave of forced migration. With only 74 permanent employees receiving formal transition benefits, the future remains bleak and uncertain for the 1,500 contractual workers who have suddenly lost their primary source of income.