Shree Cement to invest Rs2,000 crore for capacity expansion
December 15, 2009
Kolkata-based Shree Cement Ltd on Tuesday said that it plans to invest Rs2,000 crore to increase its cement output by 2 million tonnes (MT) within this fiscal and also raise power generation capacity by over four-fold by FY12, reports PTI.
"We have earmarked Rs2,000 crore for expanding our cement and power-generation capacities. Our annual installed cement production capacity will touch 12MT by March 2010. We are setting up two greenfield facilities," Shree Cement's executive director MK Singhi told PTI.
Asked about the source of funding for the projects, Mr Singhi said, "It will be a mix of internal accruals and debt."
The company, which has three cement plants in Rajasthan with an annual total production capacity of 10MT, is setting up two new plants in Rajasthan and Uttarakhand with 1MT per annum capacity each, he added.
"We are also expanding our power generation capacity to 260 mega watts (MW) by the end of this fiscal, which will eventually be ramped up to 560MW by 2011-12," Mr Singhi said, adding that Shree Cement is setting up two new units of 50MW each and one 40MW unit.
Earlier, the company, which produces 120MW from its captive power plants, had announced that it would invest Rs1,200 crore in the next two years to set up a 300MW thermal power plant in Rajasthan to foray into the commercial power business.