Shimla, Dec 27 (IANS) The Himachal Pradesh government has decided to issue a show-cause notice to leading winemaker Indage Ltd for its failure to start apple and grape wine units in the hill state, a minister said here Sunday.
“We are issuing a show-cause notice to Himachal Indage, a subsidiary of Indage Ltd, for its failure to start apple and grape wine processing facilities in the past 10 years and for causing financial loss to the state,” state Horticulture Minister Narender Bragta told IANS.

He said that as per the memorandum of understanding (MoU) reached between the government and the company April 11, 2000, Indage Ltd was to commence two units - an apple wine unit at Pragti Nagar in Shimla district and a grape wine unit at Nagwain in Kullu district. Both the units have the capacity to process 18,000 tonnes of fruit.

“We have earlier asked company officials to clarify their stand regarding the establishment of the units, but they didn’t turn up. Now we have decided to get tough with them,” Bragta said.

“If the company is not serious (in starting the units), then we would look for other options,” he added.

As per the MoU, Indage Ltd was to purchase apples and grapes under the market-intervention scheme directly from the farmers for processing. The company was also required to promote cultivation of grapes in the state.

“We have even provided land for the cultivation of grapes. Special concessions were given to the company to enable its units to be successful. Now no more relaxation in starting the units will be given to the company,” the minister said.

Himachal Pradesh’s economy is highly dependent on horticulture, apart from hydroelectric power and tourism. The annual fruit industry worth is about Rs.2,000 crore (Rs.20 billion).

The state is one of India’s major apple-producing regions, with over 200,000 families engaged in the cultivation of the fruit. Other fruits like cherry, pear, peach, apricot, kiwi, strawberry, olive, almond and plum are the other major commercial crops of Himachal Pradesh.