Birla Corporation, the flagship company of M P Birla Group, would invest Rs 2,500 crore over a period of three years to augment cement production capacity, a senior official of the company said.

“We are investing Rs 2,500 crore to increase cement production capacity by 4.5 million tonnes over a period of three years and to make certain other investments,” Harsh V Lodha, Chairman, Birla Corporation said.

Lodha said 1.5 million tonnes capacity would be set up at Chanderia in Rajashthan and three million tonnes at Satna in Madhya Pradesh.

The total cement production capacity of the company is 9.3 million tonnes, Lodha said after the company’s AGM here today.

He said production at Chanderia was affected due to ban on limestone mining, adding, the company would introduce mechanical mining once it receives the permission.

Owing to the ban at Chanderia, production of cement had been lower, leading to lower capacity utilisation, he said.

About overseas plans, he said plans of setting up a cement plant at Ethiopia had been put on hold due to oversupply situation in that market, adding, Jute was also an important business in the Birla Corporation portfolio.