.rm77 SHRI HARIGANGA CEMENT,LTD OBJECTS & ACTIVITIES; Manufacture of portland cement. INCORPORATION & PROMOTION; The company was incorporated on 23rd March 1979 and obtained the Certificate of Commencement of Business on 31st March 1979. It was promoted by Shri Ganga Rama Agarwal and his associates. The State Industrial Corporation of maharashtra (SICOM) invested Rs 15 lakhs in the equity capital of the company. PROJECT SITE & CONSTRUCTION : The Company undertook to set up a dry process cement plant with an installed capacity of 66,000 TPA of ordinary portland cement The site for the project was located at villagge chunals, Rajura Tehsil in Chandrapur district of Maharashtra A mining lease agreement was entered into with the State Government initially for a period of 20years for mining limestone over an area of 49 hectared in village Tutra Sonapur Primacaon India pvt ltd were appointed consultants for the project the civil works were appointed consultants for the project The civil works were almost completed and erection of plant and machinery was at an advanced stage. There was some delay in teh implementation of the project due to minor acciddent at the site and a strike at the machinery suppliers end. The plant could not commence commrcial production due to technical snags. While technical snags contineud to persist commercial production was started from 1st July 1988. CAPITAL OUTLAY:The project was estimated to cost Rs821 lakhs of which a sum of RS91.27 lakhss was for land and building Rs 471.19 lakhs for plant and machinery and Rs23.34 lakhs for working capital margin This was to be met by share capital of Rs 300 lakhs and term loans from financial institution and banks of Rs 521 lakhs Subsequently there was an overrun in the project cost for Rs173 lakhs mainly Due to the addition of an electrostatic precipitator for air pollution control and the increase in pre-operative expenses resulting from the delay in teh implementation of the project. Financial institutions had sanctioned additional assistance of Rs82 lakhs and deferment of interest of Rs48 lakhs the balance Rs43 lakhs would be met by way of unsecured loans fromthe promoters. FINANCE: IDBI In participation with IFCI and ICICI sanctioned tern loans of Rs415 lakhs (to be reduced to the extent of Central subsidy of Rs 15 lakhs) In 1987-88 IDBI sanctioned additional term losn or Rs40 lakhs towards balancing equipments. GENERAL: During 1988-89 the name of the Company was changed from Hariganga Cement ltd. REFERENCE TO BIFR: During 1989-90 the Company became a sick industrial Unit within the meaning of section 3(0) of the sick Industrial Companies(S p provision) Act 1985. A reference was threfore being made to Board for industiral & financial Reconstructioon (BIFR)..