Jaiprakash Associates Limited (JAL) has chalked out plans to set up three cement plants in Gujarat with an overall capacity to produce about 12.2Mta. For this, the company is likely to invest close to over INR6500 crore over the next few years.
The company is considering to join hands with Gujarat State Mineral Development Corporation (GMDC) as developer for setting up a mineral special economic zone in Kutch. Meanwhile, Jaypee has already firmed up its plans to set up a large cement plant in the SEZ with a capacity of about 5Mta.
“We are examining a joint venture for the SEZ project. It will take about 3 years for the SEZ to come up. We will set up a cement plant in the SEZ with a production capacity of 5.2Mta. The investment for this cement project will be about INR2,000 crore," Manoj Gaur, Executive Chairman of Jaypee Group told Business Standard.
GMDC is in the process of acquiring land in the area. "The equity share of GMDC will be 25 per cent in the SEZ project. We are looking at picking 75 per cent stake." GMDC will also have 25 per cent equity stake in the 5.2Mta cement project.
"Our role in the SEZ project would start once the land acquisition is complete," Gaur said on the sidelines of inaugration of the company’s cement project at Sevagram. The plant has an installed capacity of 2.4Mta.
So far, Jaypee has invested INR1500 crore in the first phase. It aims to enhance the capacity by 1.8Mta in the next phase.