Iron ore mining firm Rungta Mines (RML), the flagship company of SR Rungta group, plans to set up a 1Mt cement plant in Orissa with an investment of around Rs 600 crore, a top company executive said. The move, proposed to be funded through a mix of debt and internal accruals, would diversify the business of the group beyond mining and steel production.
"Cement project is currently in the evaluation stage and if finalised, will be established in Orissa," said Siddharth Rungta president of privately held Rungta Mines. He added that in the short term the company would continue to focus on mining and steel business.
RML is in talks with the state government for allocation of limestone reserves to execute the cement project. Limestone is a key input in cement and every tonne of cement making requires 1.5 tonne of the raw material. The company is also in the process of setting up two steel plants, one each in Orissa and Jharkhand. The annual steel producing capacity of plants in Orissa and Jharkhand will be 2Mt and 0.5Mt, respectively.