ACC to raise captive power capacity

Cement major ACC is set to ramp up its captive power capacity to over 300 mw by the second half of the current year from the present 255 mw. The company is adding captive power capacities at its Lakheri and Tymore facilities.

"As part of the Rs 690 crore capital expenditure plan for the year, the company will set up a 25 mw thermal captive power plant in Lakheri in Rajasthan. Moreover, a 25 mw turbine will be set up at Kymore Cement Works in Madhya Pradesh," said NH Italia, president, finance.

The expansion in Lakheri, worth Rs 400 crore, includes increasing cement production capacity by a million tonne to 1.6 million tonne per annum. The Kymore facility in Madhya Pradesh has a 1.7 million production capacity and already has a 43 mw captive power plant.

Almost 85 per cent of ACC's power requirements are met by its captive power plants. One of its major facilities which source power from outside is the 4 million tonne per annum Gagal cement plant in Himachal Pradesh.

"The hydel power there is cheaper and thus makes sense to source from outside," noted Italia. But he did not deny the possibility of the company setting up a captive power plant at the Gagal facility later on.

Another cement player UltraTech Cement, an Aditya Birla group company, has also announced an investment of Rs 270 crore to increase captive thermal power capacity.

The 50 mw addition at its Hirmi Cement Works in Chattisgarh, will take UltraTech's total captive power capacity to about 200 mw in another two years.

The Birla company is already implementing a Rs 1,500 crore expansion plant that includes increasing captive power capacity by 92 MW. It also announced an incremental capital expenditure of Rs 490 crore to "improve productivity and cost efficiency."