Gujarat policy to boost cement capacity

Gujarat government’s decision to put its mining policy on the fast track will give a boost to eight cement companies that plan to add 22 mn tonne of capacity. Cement companies are likely to get mining lease for 30 years for limestone available in the Junagadh and Kutch regions. Jaiprakash Associates has set up 2.4 mtpa of capa-city near Kutch for Rs 1,500 crore. Binani Cement has acquired about 25 acre to set up a 2 mn tonne plant in Gujarat for Rs 1,000 crore. Though capacity utilisation of most companies has improved since early-2010, it may come under pressure once the new additions go on stream. However, with signs of improvement in demand, it is likely to improve marginally to 80.6 per cent next year. Contact: Gujarat Government. Tel: 079-2323 2611. Fax: 079-2322 2101.