Gujarat govt mulls cement and limestone policy

In a significant development, the Gujarat government is mulling a cement and limestone policy.

With over a dozen cement projects worth Rs 7,697 crore in its kitty, the government believes it's imperative to have a proper policy framework to put these projects on a fast track.

Gujarat's Kutch region is fast emerging as one of the most preferred destinations of cement manufacturing. Many companies have proposed to set up cement projects in the state during the past couple of years.

Around six leading cement companies have already inked MoUs with the Gujarat government for cement projects and a dozen are learnt to have approached the government for lease of mine limestone in the state.

Though the state has seen a flurry of cement projects, there are no specific norms or mechanism to facilitate them. "A separate cement and limestone policy is under active consideration to fast forward these projects," a senior bureaucrat told Business Standard.

"There is a need to figure out serious players and a proper screening as to whether the company willing to invest has sufficient expertise and financial capabilities to undertake these huge projects is required," said sources familiar with the development.

As many as six big cement manufacturing plants are at various stages of development in this arid region.

The companies implementing the projects include Deepak Cements & Chemical Ltd, Gujarat Anjan Cement, Aalidhra & Bhavani Clinkers Ltd, Mahagujarat Chamunda Cement Co Ltd, Neelkanth Cement Pvt Ltd and Venus Mercantile Company Pvt Ltd.

Industry sources say Kutch alone would manufacture close to 15 million tonne per annum (mtpa) or 6 per cent of country's total cement production by 2010.