Birla to invest Rs 12,000-mn in cement plant

Kolkata: Birla Corporation will set up a 3-million tonne greenfield cement manufacturing project at Satna in Madhya Pradesh, entailing an investment of Rs 1,200 crore, according to its Chairman, Mr Rajendra S. Lodha.

The plant, expected to be operational within two years, will be set up on 2,000 acres near its existing cement plant in Satna.

The new plant, along with proposed expansion in existing factories, would boost production capacity to 10 million tonnes (mt) by 2011, up from the current 5.3 mt.

“The government of Madhya Pradesh is currently working on allotment of limestone mines to us. We have already applied for 2,000 acres of land near our existing plant,” Mr Lodha said.

The land acquisition would start once the allotments of limestone mining lease were received, he said.

The Birlas had earlier signed a memorandum of understanding with the Madhya Pradesh Government.

The company is also looking to expand its existing plants at Satna, Chanderia in Rajasthan, and Durgapur in West Bengal, he said. “The stream of brownfield projects would raise our capacity to 7.5 mt by June 2009,” he said. The company has also acquired exclusive rights for mining 21 mt of coal in Madhya Pradesh, he added.