OCL India Ltd, a cement company owned by the Rs 5,600-crore Dalmia group, would set up a 1.3 million tonnes grinding facility at an investment of Rs 500 crore in the West Midnapore district of West Bengal.
"We have got 200 acre in Jungelmahal area for a 1.3 million tonnes grinding facility and construction work is on," managing director of Dalmia Cement (Bharat) Ltd (DCBL) Punit Yadu Dalmia told a press conference here today.
He said the project cost would Rs 500 crore and would provide direct employment to 400 to 500 people. "Nearly 80% of the employees will be locals," Dalmia said.
The plant would be commissioned by the end of December this year, he said.
Dalmia Cement (Bharat) owns 45% stake in OCL.
To a question, he said that he was pleasantly surprised to find that the company was not facing any problem in the erstwhile Maoist-infested area.
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"Initially I was scared. But the reality is totally different from perception," Dalmia said.
At present, DCBL has plants in the North East (Assam and Meghalaya), Tamil Nadu and Andhra Pradesh with a total capacity of 17 million tonnes.
"We are setting up a plant in Karnataka at an investment of Rs 1,300 crore with a capcity of 2.5 million tonnes," Dalmia said.
The plant would be operational by March 2014, he said.
Besides, DCBL would infuse another Rs 500 crore in the North-eastern plants to upgrade equipment.
Cement business contributed 70% of the total revenue of the group.
Regarding North India, Dalmia said the company is open to selective acquisitions there.