Murli Agro gets pollution clearance for cement plant

Nagpur-based Murli Agro Products (MAPL) has received the pollution clearance from the Maharashtra government for its Rs 578 crore greenfield cement plant.

The company also expects to get the environment clearance from the Centre by the end of this month. It has identified 880 hectares in Chandrapur district of Maharashtra for the plant.

"Moreover, the Maharashtra government has recommended the central government to allot coal blocks. We should get the clearance for the blocks by September this year," said Managing Director Nandlal Maloo.

For its foray into cement, the company is setting up a 2.14 million tonne a year plant. It is financing the project through a mix of debt and equity. "About Rs 185 crore of the Rs 347 crore debt funding has already been sanctioned by the banks," said Maloo. The rest will be met through internal accruals.

Bank of Baroda is the lead bank for arranging debt for the project and has sanctioned Rs 85 crore as a term loan. State Bank of Patiala has also sanctioned a term loan of Rs 100 crore. Many other banks have given an in-principle approval.

MAPL has interests in paper manufacturing, solvent extraction and captive power generation. The plant will come up at the pit head, and the area also has proven reserves of limestone.

"The plant will be centrally located, and we will supply cement to Maharashtra and Chhattisgarh," added Maloo. The greenfield plant is expected to start production by April 2008.