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TN to invest Rs 515 cr in govt-run cement plants

TE Narasimhan  |  Chennai 

The Tamil Nadu government has issued orders to upgrade two of its cement plants with an investment of around Rs 515 crore. Besides, it has sanctioned Rs 67.46 crore for Tamil Nadu Newsprint and Papers Limited (TNPL) to set up a cement plant, which will mark the company’s foray into the sector.

The state government has said that Rs 165 crore had been sanctioned to modernise the Alangulam cement plant with an outlay of Rs 165 crore.

Orders have also been issued to appoint a project management consultant to increase the production of the Ariyalur cement plant to 1.5 million tonne a year from the current 500,000 tonne. Investment for the proposed expansion would be around Rs 350 crore, according to the state industries department.

The government has also permitted TNPL to produce 600 tonne of cement per day at an investment of Rs 67.46 crore from the wastage of lime clay and fly ash, department sources said.

The expansion of the state-run cement companies comes at a time when the southern cement market is showing some positive recovery. After reporting a negative growth of around 3.03 per cent in the first nine months of the current financial year, the southern market has shown some signs of recovery in the last quarter by reporting an 8.98 per cent growth.

Meanwhile, TNPL has said that it will also make efforts to develop pulpwood plantation in about 1,000 acre in the effluent water-affected lands on the Noyyal river banks in Tirupur, Erode and Karur districts. On successful implementation of the scheme, it will be enlarged from 3,000 acre to 5,000 acre every year, it said.

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First Published: Tue, May 15 2012. 00:02 IST