Bhopal, Sep 9: Prospecting licences have been issued to 12 companies for setting up cement plants in Madhya Pradesh to raise manufacturing capacity per year by 10.70 million tonnes from 18.90 million tonnes at present.
During the last four investors' meets, organised during the BJP regime, as many as 38 Memoranda of Understanding (MoU) involving an investment of Rs 73,000 crore in the cement sector had been signed.
In 2002-03, cement production in the state stood at 15.39 million tonnes (MT), official sources said.
The companies to whom prospecting licences have been granted include Reliance group at Satna (20 MT per annum), Sanghi cement in Katni district (3.55 MT), ACC Ltd at Kaymore (2.5 MT), Prism Cement in Satna district (2.5 MT), MSP Steel and Power Ltd in Katni (two MT), Rewati Cement in Satna (2.5 MT), India Cement and Rungta Mines Limited in Satna (two MT each) and Electro Steel Casting and K J S Cement in Satna district (1.5 MT each).
Madhya Pradesh is the third largest cement producing state, catering to 13 per cent of the country's demand. It ranked fourth with total lime stone deposits of 3,625.98 MT Ten big industrial houses, having cement manufacturing facilities in the state, have ventured out for a major expansion drive and to set up captive power plants.
ACC Ltd, having 1.70 MT plant at Kaymore, has proposed Rs 350 crore expansion to increase production capacity by 1.20 million tonnes and to set up a captive power plant.
Birla Corporation Ltd, having two plants of 0.80 MT and 0.75 MT in Satna, is going ahead to expand the capacity of these units to three MT at a cost of Rs 350 crore, besides setting up a captive power plant.
Century Industries, having three MT plant at Maihar, is going ahead with expansion of capacity by 1.50 MT and establishment of captive power plant costing Rs 120 crore.
Javad-based Grasim Industries, Damoh-based Diamond Cement of Mysore Cement Ltd and CCIL's Neemuch plant are setting up captive power plants.
Rewa-based Jaiprakash Associates proposes to set up a 25 MW captive plant, the sources added.