Birla Corporation to set up greenfield cement plant in Maharashtra for Rs 2450 crore

Birla Corporation Ltd on Saturday said that its wholly owned subsidiary RCCPL has decided to set up a 3.90 million tonne greenfield integrated cement plant at Mukutban in Maharashtra with a 40 mw captive power plant and a 10.60 mw heat recovery system.
The company in a BSE filing on Saturday said that the RCCPL board has approved setting up the new cement plant, which will take up its capacity from present 5.58 million tonne per annum (mtpa) to 9.48 mtpa.

The project will entail an investment of Rs 2,450 crore. The greenfield project will be financed by a mix of debt and internal accruals.

The move will catapult the MP Birla group's cement production capacity to 19.5 mtpa within financial year 2021-22 from 15.5 mtpa now.

The company in the BSE filing said, it has already acquired land and has mineral concessions required for the project. The proposed plant has already recieved environment clearance. The company is also expected to get fiscal incentive from the Maharashtra government since Maharashtra is a cement deficit state.

The city-headquartered company had, in August 2016, acquired cement business of Reliance Infrastructure's (Rinfra) cement arm Reliance Cement Company Private Limited (RCCPL) for an enterprise value of Rs 4800 crore.

RCCPL has three cement units, an integrated cement plant at Maihar in Madhya Pradesh and grinding units at Kundanganj in Uttar Pradesh and Butibori in Maharashtra, with an aggregate capacity of 5.58 mtpa of cement and 3.3 mtpa of clinker. The cement maker had achieved successful integration of operations of RCCPL.