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Wednesday, 30 September 09
INDIA CEMENTS SET TO PRODUCE POWER; EYES COAL MINE IN INDONESIA


Financial Express reported that, Tamil Nadu-based India Cements Ltd (ICL) has firmed up plans to produce power to meet its current and future requirements. As part of its strategy to become an integrated cement company, it is looking to acquire a coal mine in Indonesia and an overseas gypsum producer to meet its fuel, as well as raw material requirement.

The company, which has more than 60 mw power generation capacity through windmills, gas and waste-based power plants at its facilities, will set up two 50 mw thermal power projects — one each in Tamil Nadu and Andhra Pradesh — with an estimated investment of Rs 500 crore. ICL has shelved its plan to set up the power projects under a separate company. While the Tamil Nadu project will be set up near its Sankarnagar plant, the company is yet to identify a site for the Andhra Pradesh project.

A company official told FE, "We require close to 160 mw power to meet our requirement (up to 15.5 million tonne). Over and above our own capacity of 60 mw, we buy the rest from the grids. To ensure continued power supply and become a cost-effective and competitive player in the market, the company has decided to put up the two power plants.

" The company is working on the project details and will firm up the plan soon. "The projects will be funded through internal accruals as well as through debt," he added.

Source: Financial Express



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