ACC says expansion plans on track

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New Delhi, May 20 (UNI) The country's largest cement manufacturer ACC Ltd today said its expansion plans to push up its total cement capacity to 30 million tonne per annum (mtpa) by 2010 are on track.

''The plans to push up capacity to 30 mtpa by 2010 from the current 22.4 mtpa are on line, but we will review the plan beyond this period,'' company Managing Director Sumit Banerjee told reporters here.

The company plans to augment grinding capacities at Madukkarai and New Wadi by 0.8 mtpa (total) and additions of 1.18 mtpa at Bargarh (Orissa) and 3 mtpa each at New Wadi (Karnataka) and Chanda (Maharashtra).

Mr Banerjee said the continued rise in the raw material costs may prove detrimental to the expansion plans as the company is unable to share the cost burden with the consumers.

The company is facing enormous pressure on its margins because of rising input costs, he said, adding that the company would hold prices for two-three months after the government had asked cement firms for the same in order to tame inflation.

''Given the current situation in the industry, ACC is under tremendous pressure as costs are going up... not incrementally, but leap-frogging,'' he said.

UNI MP SG HS1537

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