ACC, Grasim plan units in Chhattisgarh

Associated Cement Companies (ACC) and Grasim Cement will set up two new cement plants in Chhattisgarh, besides expanding their existing cement facilities in the state. Both the companies signed memoranda of understanding with the Chhattisgarh government this evening to this effect.

Besides the two cement majors, four government companies today signed MoUs with the state government for setting up plants and expanding their existing units.

A state government official told Business Standard that nine MoUs were signed this evening, involving a total investment of Rs 6809.60 crore. This would increase the cement production in the state by 20.58 mtpa, the official added.

The ACC-Holcim-Gujarat Ambuja combine is the country's largest cement producing group with a capacity of 33 million tonne a year, while the Aditya Birla Group, which includes Grasim and Ultra Tech, is second with 31 million tonne.

Chhattisgarh currently houses six major cement units belonging to Ambuja, Century, Grasim, ACC, Lafarge and Ultra Tech. The units produce 111 lakh metric tonnes cement per annum in all.

Steel majors, Jindal Steel and Power and Monnet have diversified into cement manufacturing. While Jindals will set up a 2 mtpa cement plant at an investment of Rs 720 crore, Monnet will invest Rs 1400 crore for setting up two cement plants in the state.

ACC will set up a 4.05 mtpa capacity plant at an investment of Rs 1400 crore, besides spending Rs 400 crore to expand its existing unit for increasing the production capacity to 2.5 mtpa from 1.25 mtpa.

Grasim Cement will invest Rs 1200 crore in its proposed 3.5 mtpa new cement plant in the state. The company will also increase the production capacity at its existing unit, with an investment of Rs 180 crore.

Century Cement has also inked an agreement with the state government, involving an investment of Rs 109.60 crore, to execute expansion at its existing facility.

Shree Cement, the largest single location cement plant in Northern India, has signed a deal with the Chhattisgarh government to set up a 2 mtpa capacity cement plant in the state at an investment of Rs 1000 crore. Rungta Mines Ltd (RML), the flagship company of S R Rungta group, has also proposed to invest Rs 400 crore to set up a 1.41 mtpa capacity plant in Chhattisgarh.