Kamal to invest Rs 1,000 cr

Cement major to set up 2 million tonne plant in Satna district

Kamal Cement & Infrastructure Ltd has proposed setting up a 2 million tonne (in two phases of 1 million tonnes each) cement plant in the Satna district with an investment of Rs 1,000 crore.

The company will join hands with the Rashtriya group to set up the unit. The project will be executed on a turnkey basis and will undertake mining, limestone, storage, clinkerisation, cement grinding and packing. The company has also proposed to set up two captive power plants of 30 Mw each at the site.

The new plant, according to official sources, will create 2,000 direct jobs and almost 6,000 indirect jobs. The promoters of Sadhna Channel and Rashtriya Advertising are learnt to have joined hands with Kamal Cement in the project.

Kamal Cement will invest Rs 200 crore while the remaining Rs 800 crore will be arranged through financial institutions and other sources.

"The firm has asked for co-operation from the department of industry and the trade and facilitation corporation of the state in land acquisition, mining lease, tax exemptions and other facilities," said the source.

The joint venture firm will use latest technology and the proposed plant will be spread over 300 acres, of which 80 acres will be allocated to production facilities, office and other utilities. Approximately 200 acres of land will be required for siding, limestone crushing and storage. It will utilise 2,500 kilolitres of water for plant and production purposes.

"They are setting up the plant in Satna since Satna has wide deposits of limestone--the key ingredient in cement manufacturing. The site will also have a geographical advantage to cater for markets of Uttar Pradesh, Bihar, Delhi, Haryana and other northern states; the apex empowerment committee on investment will consider their demands and we will respond accordingly," said a senior official in the department of industries.

The company has asked for 1,500 hectares of limestone mining sites on lease, exemptions on stamp duty for the registration of land and diversion fees, and exemption from commercial tax or value-added tax for at least 10 years.

Also, the company has asked for exemption from entry tax for at least 10 years, exemption from electricity duty, provisions for interest subsidy, and assistance in getting clearances from the pollution control board, industries department, electricity board, district authorities and other departments.

The firm will use limestone with 68 per cent calcium carbonate content and low-grade iron ore, 90 per cent pure sweetener high-grade limestone, 50-60 per cent pure gypsum, and fly ash.