Lanco inks MoU for Chhattisgarh project

Hyderabad-based Lanco Industries on Wednesday said that it had signed a tripartite memorandum of understanding (MoU) with UK-based Lytag Asia Limited and the government of Chhattisgarh "� represented by the CSIDC (Chhattisgarh State Industrial Development Corporation), for the setting up of a manufacturing construction material plant based on fly ash. The plant is expected to cost Rs 220 crore.

Lanco's special purpose vehicle (SPV) Lanco Amarkantak Power Private Limited has signed the MoU on behalf of Lanco Industries.

A release from Lanco said that the first phase of the project, which requires an investment of Rs 120 crore, will be ready by 2006 and the second phase is expected to be completed by 2008.

Lanco Amarkantak Power Private Limited, which is developing the Pathadi Thermal Power Station in Korba district of Chhattisgarh, is bringing the £5-billion RMC group and manufacturing facility of Lytag into Chhattisgarh.

The facility will come up adjacent to Pathadi Power Station and will be developed by a special purpose vehicle called Lytag-Asia. Lytag is a patented fly ash based building product that is environment friendly as it uses the waste product from the coal fired thermal power stations.

Fly ash has become an environmental problem of huge proportions in Chhattisgarh and this project hopes to redress this problem.