Jaiprakash Associates Ltd (JAL), the flagship company of Jaypee Group, will invest Rs. 1,050 crore for setting up a greenfield cement plant in Assam.

The project would be a joint venture one with Assam Mineral Development Corporation (AMDC), a government of Assam undertaking.

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The plant, when completed, will produce about 6,667 MT or about 1,33,334 bags of cement per day.

The executive chairman of JAL, Manoj Gaur, and JP Barua of AMDC, signed the MoU in presence of Assam chief minister, Tarun Gogoi, last week.

The company also deposited 1 per cent of the equity base, Rs. 3.15 crore, as earnest money to AMDC.

JAL will have 82 per cent equity in the new joint venture company; with the balance 18 per cent allotted free of cost to AMDC.

Thanking Jaiprakash Group for its “endeavour,” Gogoi said: “The state government would welcome anybody who wants to invest in the state and all possible help will be given to such investors.”

Ravi Capoor, commissioner and secretary of department of mines and minerals, said that the party for setting up of mineral based industries in Assam was selected through an open bidding system.

He added that in response to advertisements, 23 companies submitted their offers for setting up of the cement plant, which were later evaluated by a committee of senior officers of the state government and subsequently JAL was selected as its offers was found to be most attractive. The cement plant would come up at Umrangshu in North Cachar Hills district in Assam. The North Cachar Hills area has substantial amount of limestone reserves.

According to Capoor, once these projects materialised, the prospects of ailing AMDC would turn around. The project is expected to generate direct employment for at least 1,500 people.

JAL is the third largest producer of cement in the country with an installed capacity of 14.70 MNTPA.

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