After running from pillar to post for more than a year for its proposed Rs 1,000-crore cement plant in Madhya Pradesh, Hyderabad-based Sanghi Industries Ltd has been invited by the MP government to ink a deal for the project at its Indore Investors’ Meet. The company has revised its plan for investment in terms of plant capacity and it also has plans to set up a steel plant.
The two-day meet will start in Indore on October 26.
The makers of Lion Brand Cement, have expanded its investment plan from Rs 1,000 crore to Rs 3,000 crore for the proposed cement plant in Satna district.
“Now the company has planned to set up a 7-million-tonne (3.5X2) cement plant instead of the 3Mt planned earlier. The investment in the plant will increase to Rs 2,500-3,000 crore. The plant will also have a 60-Mw captive thermal power plant. The Sanghis also want to set up a steel plant in the vicinity. If the state government extends support in terms of coal-linkage, land and water supply, the company will make an investment of Rs 2,000 crore in the steel plant. Thus, the investment will go up to Rs 5,000 crore,” said a source. The steel plant, according to the source, will be of one million tonne capacity.
“The company’s Managing Director and Project Chief Ravi Sanghi is likely to attend the meet and ink the deal. But the mining lease, land lease and acquisition of land etc. are yet to be issued. The company has to get coal allotment and environment clearance from central authorities,” the source said adding, “the company is expecting to start commercial production by 2010 provided there are no procedural delay.”
Although top officials in the Department of Industries are avoiding media on differences between ‘number-game’ of investment on papers and in reality, a government source said “The state government will support only in accordance with industrial policy.”
After one year of the proposal, the company has to acquire a 1,369.84 hectare land in Satna district and 296 hectares in Katni district. The company may demand more land since it also has a plan to set up an industrial complex at the proposed site.