Adani Power to tie in with cement manufacturer, India

Adani Power to tie in with cement manufacturer, India
Published: 18 September 2008

Adani Power is trying to rope in a cement manufacturer to ensure an environment friendly as well as economically-beneficial utilisation of fly ash be generated by 4620-MW Mundra thermal power plant whose first unit is due for commissioning in the first quarter of 2009.

Initial estimates suggest that the plant will generate approximately 1Mt of ash ever year once all its nine units become operational in 2011. But what causes concern is that almost an equal quantity of fly ash is likely to be generated by Tata Power’s 4000MW ultra-mega project (UMPP), which is also coming up at Mundra. The Tata project is located close to Adani Power’s facility and is slated to use the common captive coal terminal.

While the Tata Power project is under construction, there is still time to work out the modalities for the disposal of the fly-ash but the same is not true for the Adanis, who have to find a long-term solution to the problem of fly-ash disposal in an environmentally-sustainable manner.

While the group is currently working on a formal proposal in this regard, sources say that the Adanis recently sounded cement majors like Lafarge, Ambuja and UltraTech Cement in this regard. When contacted, none of the manufacturers, however, confirmed any plan to set up cement unit at Mundra.

Interestingly, the Adani Group’s is planning to rope in a cement manufacturer at a time when the State Government is reportedly mulling to formulate a cement and limestone policy. Gujarat’s limestone rich Kutch region (where Mundra is located) is emerging as a destination of cement manufacturing.

While six leading cement companies have already inked MoUs with the State Government for setting up cement units, many more are reportedly looking forward to secure limestone-mining rights in the State.