A proposal to set up two green-field cement plants with an installed capacity of 9.5 million tonnes (mt) by the Ultratech Cement Limited of Aditya Birla Group was cleared by Andhra Pradesh government. The company, which has a total installed capacity of 62 mt across about 21 plants in India, currently operates a 4.9 mt capacity plant at Tadipatri in Anantapur district of Andhra Pradesh. These two plants of a similar size have been proposed to be set up at Dachepalli of Guntur district and at Pentikota of Kurnool district by the company.
Ramco Cement's plant proposed with a capacity of 2.5 million tonne in Kurnool district has also been aprroved.
The state investment promotion board (SIPB), headed by chief minster N Chandrababu Naidu, cleared investment proposals worth about Rs 9,200 crore, including the cement plants yesterday, according to a statement issued by AP industry department principal secretary J S V Prasad.
According to government sources, the two cement companies already possess the mining leases on limestone reserves to support these additional capacities.
"They have asked for about five years to construct the plants owing to lack of infrastructure at the proposed locations. However, the government has agreed to give them three years time," an official told Business Standard.
The SIPB has also decided to provide a railway siding facility for a distance of 20 km to meet the transport requirements of the proposed cement plants in Kurnool district. The board also agreed to provide a dedicated water supply line for all the three cement plants apart from giving additional water to the Ultratech Cement's existing plant in Anantapur district.
The board also decided to reduce the VAT on Subabul plant used in paper and cardboard industry to 5% from the existing 14.5% and also deleted MDF board and particle board manufacturing from the negative list of industrial investment policy.