Binani Cement, part of Braj Binani Group, has signed a memorandum of understanding with the Gujarat Government to set up a greenfield cement plant of 2.5 million tonnes per annum (mtpa), a 610 MW thermal power plant and a jetty to handle cargos with a cumulative investment of Rs 4,200 crore.
In 2009, the company had signed an agreement to set up a 2.5 mtpa cement plant with an investment Rs 800 crore.
The proposed cement plant will come up on 188 hectares at Lodhva village of Junagadh. The plant will manufacture ordinary portland cement (OPC), Pozzolona Portland cement (PPC) in various grades.
The cement plant will be located near rich limestone deposits and will ensure a steady supply of raw material, the company said in a press release. Further, the association of Binani Cement with the Gujarat Government will help develop the region in terms of employment generation and overall standard of living, it added.
The company signed an agreement with the Department of Mines and Geology to set up the cement plant. With the additional plant, the total greenfield cement plant capacity proposed will be 5 mtpa.
Further, the company has signed an MoU with the Gujarat Department of Energy and Petrochemicals to set up a 610 MW thermal power plant to be completed in three phases.
A captive jetty capable of handling cargos of 10 mtpa will also be built in three phases of 1 mtpa, 2.5 mtpa and 6.5 mtpa.
Binani Cement has proposed to tap the UAE, Mauritius and East African markets from Gujarat.
Shares of the company on BSE were up 0.11 per cent at Rs 87 on Thursday.