ACC likely to set up hydropower plants

ACC, the country's largest cement maker, is mulling to get into hydropower projects as a part of its strategy to derive power from renewable sources and cut costs. The company is currently exploring hydropower projects, which are available for a takeover.

This would probably be the first time for a cement company to go for a hydel project. ACC has also bid for a hydropower project of 13-MW in Himachal Pradesh in an open tender with the state government.

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ACC has bid for a hydropower project of 13 MW in Himachal Pradesh

The cement-maker is mulling to get into hydropower projects as a part of its strategy to derive power from renewable sources

ACC has recently set up its second wind power-based captive power plant in Rajasthan

"There are 2-3 ways for exploration. One is the possibility of new projects, another is looking at the existing hydropower companies, the smaller ones, and lastly projects, which are in an intermediate stage with all the approvals having been received," said Sumit Banerjee, managing director, ACC.

ACC, part of the Swiss cement giant Holcim, has recently set up its second wind power-based captive power plant of 7.5-MW capcity in Rajasthan’s Jaisalmer. The company's first wind power project with a capacity of 9 MW came up in Tamil Nadu last year.

"Power is a crucial factor for cement firms. Since the industry is sitting on sufficient cash flows due to the longest-ever profitable cycle in the sector's history, funding such projects will not be a problem," said an analyst with a Mumbai-based firm.