The Tamil Nadu Cement Corporation Ltd (TNCCL), a state-run cement manufacturer, has been allocated Rs115.91 by the government for modernising it Alangulam unit.
The proposed modernisation will not only increase production by 50 per cent but will also reduce production costs by 50 per cent, according to an official release.
Located at Alangulam Virudhunagar district, started commercial production in 1970-71. It has a production capacity of 400,000tpa.
The company manufactures and markets its Arasu brand cement in Tamil Nadu and Kerala. Its major clients are government departments.
The unit had been facing a financial constraints for the last 40 years, mainly on account of high production cost. The state government has attributed this to old technology, fuel and power, the release added.