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Sagar Cements Ltd will be investing an additional ₹28 crore in the ongoing captive power production project and a new solar power plant.
“With this, the total investment in the plant under implementation will go up to about ₹98 crore,’’ S Sreekanth Reddy, Executive Director, told BusinessLine recently.
The board of directors had approved the recommendation of its investment committee to revise the capacity of the coal-based power plant under implementation at its Mattampally plant from 15 MW to 18 MW with an additional investment of ₹23.66 crore.
It will be funded through borrowings and internal accruals. The project is expected to be commissioned by March 2019.
When asked on the advantages, Reddy said: “It’s all to do with the CMD charges which we are paying now. Once the plant becomes operational, we can cut those charges.”
The plant will have a Circulating Fluidized Bed Combustion (CFBC) boiler which is economical, besides meeting the latest regulatory requirements of sulphur oxides and nitrogen oxidises emission norms.
In addition, the company will also be installing a 1-MW solar-based captive power plant at a cost of ₹4.70 crore to be met through borrowings and internal accruals. The plant will be commissioned by June 2017.
Subsidiary name changeWith effect from March 28, 2017, the name of Sagar’s wholly owned subsidiary BMM Cements Ltd has been changed to Sagar Cements (R) Ltd.
The Hyderabad-based Sagar Cements had acquired BMM Cements in September 2014 for an enterprise value of ₹540 crore.
BMM has a one-million-tonne capacity plant at Gudipadu near Tadipatri in Anantapur district of Andhra Pradesh and limestone reserves of around 155 million tonnes. It has been integrated fully with Sagar.
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