Prospecting licences to 12 cement plants

Bhopal, Sep 9(UNI) 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 m 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 m tonnes, official sources said.

The companies to whom prospecting licences have been granted include Reliance group at Satna(20 million tonnes per annum), Sanghi cement in Katni district (3.55 MT), ACC Ltd at Kaymore (2.5MT), Prism Cement in Satna district (2.5MT), MSP Steel and Power Limited in Katni (2MT), Rewati Cement in Satna (2.5MT), India Cement and Rungta Mines Limited in Satna (2 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 percent of the country's demand. It ranked fourth with total lime stone deposits of 3625.98 million tonnes.

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 Limited, having 1,70MT 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 Limited, having two plants of 0,80 MT and 0.75 MT in Satna, is going ahead to expand the capacity of these units to 3 MT at a cost of Rs 350 crore, besides setting up a captive power plant.

Century Industries, having 3 MT plant at Maihar, is going ahead with expanding 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 Limited 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.

UNI SP 1202