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Two more plants planned in cement-saturated South

South India has a huge capacity overhang with 150 mn tonnes against a total demand of 60 mn tonnes

BS Reporter  |  Hyderabad 

Cement
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Notwithstanding the surplus capacity in south India, two South Indian manufacturing have proposed to set up new plants in

Tamil Nadu-based Chettinad Corporation Private Limited and are planning to invest Rs 1,350 crore and Rs 531 crore respectively to establish their new units in the state.

The state investment promotion board headed by chief minister has cleared six investment proposals, including these two, involving a total investment commitment of Rs 3,303 crore.

According to the government, Chettinad will set up a grinding unit on 75 acres and a manufacturing plant on 1,000 acres of land in Vizag and Guntur districts respectively. The mega project will start production in March 2019.

will be setting up a unit on 100 acres of land in Krishna district with the first phase scheduled to start operations in a year's time.

The industry in South India in general, and in and in particular, is facing a huge capacity overhang with an installed base of around 150 million tonnes against a total demand of around 60 million tonnes. An additional 20 million tonnes goes to the neighboring markets in the eastern and western parts of the country from here, according to the industry representatives.

The two Telugu-speaking states together possess more than 30 per cent of the country's reserves, making them attractive destinations for

Among the other major investment proposals, Hyderabad-based Rain Group, which also has manufacturing operations, has expressed interest in establishing a plant, a grinding unit, an R&D facility and a waste heat recovery power plant at in Visakhapatnam district, the government said. The company proposes to invest Rs 1,096 crore in these projects.

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