Ambuja To Sell Dlf Orissa Mining Leases

Gujarat Ambuja Cements (GACL) is planning to sell the limestone mining leases of DLF Orissa, a subsidiary that came into the company's fold with the acquisition of DLF Cement. DLF Cement is now called Ambuja Cement Rajasthan.

Senior officials at GACL said: "We are not looking at setting up a cement unit in Orissa. Hence, we would look at selling the mining leases there, held through DLF Orissa, to anybody who is interested in setting up a cement plant in that region."

After around five years, GACL has no capital expenditure lined up for the near future. Its latest two million-tonne greenfield project -- Maratha Cement Works -- at Chandrapur in Maharashtra is ready to be commissioned in two weeks.

The project was started in June 2000 and the expenditure originally estimated was Rs 600 crore which later shot up to Rs 675 crore.

The company is planning to kickstart the 0.5 million-tonne Bhatinda grinding unit phase-II after one year. The 0.5 million tonne phase-I was commissioned eight-nine months back.

Meanwhile, with an oversupply situation existing in south, the cement major has put on hold its plans set up a two million tonne greenfield cement plant in Andhra Pradesh. According to the company, the surplus supply in the region will continue for two more years.

GACL is also going slow with its proposed plan to set up a 0.5 million-tonne grinding unit in Sri Lanka.