Jaypee Group plans 12 mmtpa cement projects in gujarat


Updated Thu, 03 Dec 2009 00:00:00 GMT

Jayprakash Associates Limited (JAL) has chalked out plans to set up three cement plants in Gujarat with an overall capacity to produce about 12.2 million metric tonnes per annum (MMTPA). For this, the company is likely to invest close to over Rs 6,500 crore over the next few years.

The company is considering to join hands with Gujarat State Mineral Development Corporation (GMDC) as developer for setting up a mineral special economic zone in Kutch. Meanwhile, Jaypee has already firmed up its plans to set up a large cement plant in the SEZ with a capacity of about 5 MMTPA.

"We are examining a joint venture for the SEZ project. It will take about 3 years for the SEZ to come up. We will set up a cement plant in the SEZ with a production capacity of 5.2 million tonnes. The investment for this cement project will be about Rs 2,000 crore," Manoj Gaur, Executive Chairman of Jaypee Group told Business Standard.

GMDC is in the process of acquiring land in the area. "The equity share of GMDC will be 25 per cent in the SEZ project. We are looking at picking 75 per cent stake." GMDC will also have 25 per cent equity stake in the 5.2 MMTPA cement project. G

"Our role in the SEZ project would start once the land acquisition is complete," Gaur said on the sidelines of inaugration of the company's cement project at Sevagram. The plant has an installed capacity of 2.4 MMTPA.

So far, Jaypee has invested Rs1500 crore in the first phase. It aims to enhance the capacity by 1.8 MMTPA in the next phase.

As part of its expansion plan in Gujarat, Jaypee is also in the process of setting up a cement project in Wanakbori in Kheda district with a capacity of 3 MMTPA.

"We have plan to invest Rs 3000 crore for the cement projects in Gujarat by end of 2010. This will take our total investment in the state to Rs 9000 crore," according to Gaur.

At present company's total installed cement capacity across the country is 17.1 MMTPA and it is expected to increase to 25 MMTPA next year.

To export the cement and import raw materials, Jaypee group is also developing a jetty at Kharocreek with an investment of Rs 200 crore.

The jetty will be ready in 18 months and it will have a handling capacity of 3 MMTPA.

"Gujarat will be cement manufacturing Hub as more 40 cement companies are in queue to set up their projects in the state," said Gujarat chief minister Narendra Modi who was the chief guest at the function.

He invited JP Group to set up their other ventures in hospitality, education, health care and power.