Jaypee Cement may start Dalla clinker unit in early 2012

Jaypee Cement may start Dalla clinker unit in early 2012
Published: 24 October 2011

Jaypee Cement, the cement division of Jaiprakash Associates, is seeing a delay in the commissioning its 2Mt clinker unit in Uttar Pradesh.

Market sources said that, "The plant was scheduled to commence production from October 2011, but this may now start from February or March 2012. The project had run into environment clearance hurdles."

Rahul Kumar, CFO of Jaypee Cement commented: “Till we secure the environmental clearance, we would not be in a position to comment when the production would begin."

Jaypee was asked to halt construction work at the facility by the ministry of environment and forests last May. "The environmental clearance for the project is subject to the final order of the Supreme Court, and a clearance under the wildlife (Protection) Act. The plant is reportedly being constructed on a site that has been notified as a reserved forest, under the Forest Conservation Act,” said an environmental analysis.

Jaypee aims to increase its capacity to 35.5Mta by the end of this financial year. Around 30.5Mt of capacity will be constructed in its own name with the rest through joint ventures such as the 4.3Mta project with Steel Authority of India.