Chennai cement firm beats Lafarge in HP

Global cement giant Lafarge has been elbowed out for the second time in the Himachal Pradesh cement business.

"The India Cement Ltd from Chennai has been allotted the Rs 900-crore Chopal cement plant, which will have an annual capacity of 2 million tonnes," said a top official of the state industries department, not wishing to be named.

The Chennai firm beat eight others to bag the bid, which included Lafarge, Ambuja Cements, ACC, Grasim, Madras Cements, Jay Kay, Shree Cements, and Peuna.

"The memorandum of understanding is to be signed soon, after which the plant will be set up in five years," said the official. Located some 100 km from Shimla, the Chopal cement plant will explore limestone rich deposits of the Gumma-Rohana region in Shimla.

Experts estimate around 200 million tonnes of limestone reserves in this mountainous region.

According to the terms of the deal, the cement company will have to convert half of the clinker (residue) manufactured into cement at the plant site, while the company will be allowed to carry the remaining half outside the state.

The firm will also have to acquire all clearances, including the environment clearance from the central ministry of environment and forests.

Lafarge has lost out the second time to enter the cement industry of the state. A year ago it lost out to another domestic player, Jaiprakash Industries, for the Baga Balag cement plant in Bilaspur.

Ambuja Cements, ACC and Cement Corporation of India are already running cement plants in the state.