India: Dalmia Cement proposes to lease out power assets

India: Dalmia Cement proposes to lease out power assets
Published: 12 August 2008

Dalmia Cement, the south-based cement maker, has proposed to lease out assets comprising the undertaking of its proposed 18MW power plant at Dalmiapuram in Tamil Nadu.

The assets will include land, buildings, plant and machinery.

The company said that the step is being taken to have a good operational efficiency from the power project (which is in the process of setting up to assist the nearby existing cement plant) and to maintain a healty debt equity ratio for the company.

The company’s board has decided that the assets relating to the project be leased out to a private power company — Keshav Power.

The board of the company, in a notification, has asked the consent of its shareholders for the same.

In its draft resolution the company said that the lease period will not exceed 20 years.