Bhopal:Monday, September 8, 2008:As many as 38 MoUs have been signed at the four investors’ meets on state government’s initiative for establishing cement factories in Madhya Pradesh. Investment to the tune of Rs 73 crore is proposed to be made through these MoUs.
It may be mentioned that cement production in the state was a mere 15..39 million tonnes in the year 2002-03. Due to present government’s entrepreneur-friendly policy, the production rose to 18.90 million tonnes in April 2007. Now, MoUs have been signed for expansion of these cement factories following which cement production will rise by 10.70 million tonnes yearly.
In furtherance to this, the state government granted prospective licences (PL) to 12 investing companies. The companies to whom PL permission has been given include Reliance Group at Satna (20 M.M.T.P.A), Sanghi Cement in Katni district (3.55 MT), ACC Limited at Kaymor (2.5 MT), Prism Cement in Satna district (2.5 MT), Messrs M.S.P Steel and Power Limited in Katni district (2 MT), Rewati Cement in Satna district (2.5 MMTPA), B.L.A. Cement at Maihar (2 MMTPA), Shri Cement at Katni ( 3 MT), The India Cement and Runta Mines Limited in Satna district ( 2 MT each) and Electro Steel Casting and K.J.S. Cement in Satna district (1.5 MT each).
Madhya Pradesh is the third largest cement producing state catering to 13 percent cement demand of the country. The state has limestone deposits of 3625.98 million tonnes which makes it fourth largest state in this respect. The state government has projected the possibilities and potential for development of cement industry in Madhya Pradesh in such an impressive way that large number of big industrial houses have come forward to establish cement plants in the state, which is going to emerge as a cement hub of the country in near future. Possibilities of F.D.I. attracting towards implementation of new cement schemes in the state have also become bright.
As many as 10 big industrial houses are producing cement in the sate out of which ACC Limited produces 1.70 MT at its Kaymor plant. The company has proposed to expand the unit at a cost of Rs 350 crore for generate additional production capacity of 1.20 million tonnes apart from setting up a captive power plant. Two units of Birla Corporation Limited in Satna are producing 0.80 MT and 0.75 MT cement per annum. The corporation is going to expand the capacity of these two units to 3.00 million tonnes at a cost of Rs 350 crore apart from setting up a captive power plant.
Century Industries is producing 3 MT of cement at its Maihar plant. Now the company is going to undertake expansion and establishment of captive power plant at a cost of Rs 120 crore after which its capacity will rise 1.50 MT.
The production capacity of Jawad-based plant of Grasim Industries is 3 MT. Now the company is going to set up a captive power plant there. Mysore Cement Limited’s Diamond Cement plant is producing 1.20 MT cement at Damoh and C.C.I.L.’s Neemuch-based plant is churning out 0.40 MT cement. Under the expansion scheme, both the companies are setting up captive power plants to raise their production capacity by 1 MT. Jaiprakash Associates’ Rewa plant is producing 2.80 MT and Bela-based plant 2.20 MT cement. The company proposes to set up a 25- MW captive power plant at Rewa to increase production capacity by 1 MT and set a target to produce 2 MT cement at its Bela plant. Prism Cement Limited is producing 2.51 MT cement at its Satna plant. Vikram Cement is expanding its production capacity at a cost of Rs 300 crore.
Besides, new cement factories are also proposed to be set up by big investors. Construction of 1 MT clinker and 0.60 MT cement plant is also under progress. J.P. Group is setting up a 2 MT plant at Sidhi, 3 MT plant is being established by Sanghi Cement at Katni and M.S.P. Stell and Power Limited is establishing 2 MT cement plant in Katni district.