Cement firms line up Rs 5237cr for K'taka

With the boom in construction sector, Karnataka, which has the second largest estimated reserves of limestone (17.25 million tonnes), a key ingredient for cement, has attracted investments worth Rs 5,237 crore in the last 12 months from major players for setting up cement factories.

The cement factories are coming up in Gulbarga, Bijapur and Bellary districts where limestone deposits are located. Big names like J K Cements, ACC, Ultratech Cements, Vasavadatta and JSW Cements have announced investment plans in this region.

As many as 10 cement factories will come up over the next one year. All the projects have been cleared by the state high-level clearance committee on investments.

"We are expecting more investments in cement production, especially in North Karnataka. A few more companies have held preliminary discussions with us. They should come up with investment proposals in the next couple of months," Karnataka's industries minister Katta Subrahmanya Naidu told Business Standard.

The cement projects cleared by the state include Jaykaycem Ltd at Mudhol in Bagalkot district (Rs 750 crore). ACC has two projects -- at Wadi in Gulbarga district (Rs 650.89 crore) and a Portland Pozzolona cement plant at Torangallu, Bellary district (Rs 295.83 crore).

Vasavadatta Cements intends to expand its existing plant at Sedam in Gulbarga district at a cost of Rs 625 crore. It will put up another plant to produce Portland Pozzolona cement at Torangallu, Bellary district (Rs 190 crore). Another company Kamalaya Cements Ltd will start a plant at Badami in Bagalkot district with an investment of Rs 818.50 crore.

Ultratech Cement Ltd's plant will come up in Koppal district at a cost of Rs 150 crore. The Jindal Group-promoted JSW Cement Ltd will have its plant in Torangallu, Bellary district (Rs 422 crore). Nirani Cements Ltd is going in for an expansion of its Mudhol plant with an investment of Rs 480 crore.

Ittina Properties too has forayed into cement production. It will set up a cement plant in Chittapur (Gulbarga district) with an investment of Rs 195 crore. Similarly, the Visaka Industries will set up an asbestos cement products plant in Tumkur district with an investment of Rs 181.70 crore. Other minor players have also firmed up investments worth Rs 478 crore in cement and allied products.

The minister said the government is in favour of extending captive limestone mining facility if the cement companies propose high capacity plant projects for the state.

"The offer has elicited good response from the major players. We are awaiting for their project reports," Naidu added.