Madras Cements Ltd will invest INR280 crore to set up 65MW of coal-based captive power plants at two of its cement production facilities.
According to Mr AV Dharmakrishnan, executive director - Finance, the new capacity, along with its existing 70MW, will make the 10Mta cement manufacturer self-sufficient in power.
This will give it the advantage of assured power supply and save the company about INR15 crore a year in power costs paid as fixed charges to the electricity board.
Madras Cements has placed orders for equipment with Thermax for a 40MW power plant at its Ariyalur facility. The plant will go on stream in 18 months. The other plant of 25MW is to come up at RR Nagar. Both these plants are in Tamil Nadu.