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Our Bureau

Chennai, Aug. 8 The Rs 4,270-crore Jaiprakash Associates Ltd proposes to invest Rs 3,000 crore over the next four years to create new capacities and augment the existing capacities of cement and cement products.

This will be done either directly by the company or through joint ventures or special purpose vehicles, says the company’s annual report for 2007-08.

Today, the combined capacity of the company’s four units is 7 million tonnes. Last year, the (net) turnover of the cement business was Rs 1,902 crore.

Gujarat Anjan Cement Ltd, a subsidiary of Jaiprakash Associates, is putting up a cement plant of 4 mtpa (million tonnes a year) in the Bhuj district in two phases — the first (1.20 mtpa) of which is scheduled to be completed in November 2008.

Jaiprakash has two joint ventures with SAIL for making cement. Bhilai Japyee Cement Ltd is putting up two plants with a combined capacity of 2.2 million tonnes at Bhilai in Chattisgarh and Satna in Madhya Pradesh. The project is due to be commissioned in April 2010.

Bokaro Jaypee Cement Ltd is setting up a 2.1 mtpa cement plant at Bokaro, Jharkhand, which is also due to be commissioned in 2010.

In both these joint ventures with SAIL, Jaiprakash will have the controlling stake.

Another joint venture, with Gujarat Mineral Development Corporation, is building a 2.4-mtpa cement plant and a captive power unit and a captive jetty. Jaiprakash will have 74 per cent equity in the company.

Adding up all these capacities, Jaiprakash Associates and its subsidiaries/joint ventures will collectively have a capacity of about 18 mtpa in the next four years.

Jaiprakash Associates is into several infrastructure businesses — power, hotels, coal mining and road construction, apart from producing cement and steel.

It recently entered oil and natural gas business by picking up a 45-per cent stake held by ICICI Bank and ICICI Ventures in Prize Petroleum Corporation Ltd, a subsidiary of Hindustan Petroleum Corporation.

Jaiprakash Associates has a joint venture with Prize Petroleum for exploration and development of the South Rewa Basin in Madhya Pradesh. Jaiprakash has a 90 per cent stake in the venture.

More Stories on : New Projects | Cement

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