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Our Bureau

Mumbai, Jan. 13 Binani Cement has signed a memorandum of understanding with the Gujarat Government to set up a 2.5-million tonne per annum greenfield cement plant in Gujarat at a cost of Rs 825 crore.

The proposed plant will come up at Lodhva village in Sutrapada District of Junagadh on 188 hectares. It will also have 1,532 hectares for mining.

The cement plant will manufacture ordinary Portland cement and Pozzolona Portland cement of various grades. The unit will be ‘mechanically’ completed by December 2010 and commercial production will commence in April 2011.

The association between Binani Cement and the Gujarat Government will help uplift social infrastructure, general standard of living of the people in Gujarat and development of area and employment generation in the State, Binani Cement said adding that excise duty and the sales tax for the plant was estimated at Rs 66 crore and Rs 78 crore at 100 per cent capacity utilisation. Binani Cement would also be required to pay Rs 17 crore a year as ‘Royalty and Cess’ on limestone to the Gujarat Government.

Limestone will be outsourced from the proposed captive mines located around the villages of Lodhava, Singsar, Barevala Jtiardi and other adjoining villages, contiguous and within a distance of 3-5 km. The reserves are estimated at 120-160 million tonnes and would be adequate for the plant for 30 years. Other raw materials such as sandstone, iron ore, gypsum and fly ash are available locally. The power requirement will be met with a captive unit.

The MoU was signed by Mr Vinod Juneja, Managing Director, Braj Binani Group, on behalf of Binani Cement, and Mr Raj Gopal, Commissioner – Mines & Geology, Gujarat.

The cement produced will be supplied to the markets in Gujarat, Maharashtra and West Asia.

More Stories on : New Projects | Cement | Gujarat

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