Gujarat Ambuja to set up cement plant at HP at Rs 1,519 cr

New Delhi, Dec 15 (UNI) Gujarat Ambuja Cements Ltd today said it will spend Rs 1,519 crore to set up a new cement plant in Himachal Pradesh alongwith two split grinding stations for enhancing its cement capacity by three million tonnes per annum.

The capital expenditure for the project, likely to be commissioned by March 2009, has been approved by the company's board.

The company also said it has received all statutory approvals for its proposed merger with Ambuja Cement Eastern Ltd (ACEL).

The process of the merger, to be effective from January 1, 2006.

will be completed by December 2006.

Pursuant to this, the equity share capital of the company will increase to 151.6 crore equity shares of Rs 2 each aggregating to Rs 303.2 crore, a company statement said.

The total cement capacity of company will also increase to 16 million tonnes.

The company is in the process of implementing a Rs 1,050 crore project to set up a three million tonnes capacity cement plant at Chhattisgarh, alongwith a grinding station in West Bengal, which is likely to be commissioned by March 2009.

With these two new cement lines, the total cement capacity of the company will increase to 22 million tonnes by 2009.

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