The government has allocated Rs 115.91 crore to Tamil Nadu Cement Corporation Ltd (TNCCL), a state-run cement manufacturer, for modernising its Alangulam unit.
The proposed modernisation will not only increase production by 50 per cent, but will also reduce the production cost by 50 per cent, according to an official release.
Located at Alangulam in Virudhunagar district, the unit commenced commercial production in 1970-71 with a capital outlay of Rs 6.66 crore. With a capacity of 400,000 tonnes per annum, the unit provides direct employment to 787 people and indirect employment to 2,000.
It manufactures and markets its Arasu brand cement in Tamil Nadu and Kerala, where it has a wide network of stockists. Its major clients are government departments.
The unit had been facing a financial crunch for the last 40 years, mainly on account of high production cost. The state government has attributed this to old technology, fuel and power, the release added.