Ambuja to invest Rs 370 cr for development of Gare-Palma-IV/8

Company expects mining operation in the said block to start in 2018

Ambuja Cements today said it will invest around Rs 370 crore to develop the Gare-Palma-IV/8 coal block in Chhattisgarh.

The cement maker, in which Swiss building material major Holcim has majority stake, said it expects mining operation in the said block to start in 2018.

"The estimated capex for the development of this coal block would be approx Rs 370 crore and the mining operation is expected to commence in the year 2018," Ambuja Cements said in a BSE filing.

Ambuja had bagged the coal mine, which has an extractable reserve of over 11 million tonnes, taking part in the ongoing e-auction of coal blocks at a bid price of Rs 2,291 per tonne.

The company has 27.25 million tonnes of cement-making capacity. It has five manufacturing facilities including one in Chhattisgarh. Ambuja Cements has also eight cement grinding units.