JK Cement today said it proposes to start construction work for its three million tonne greenfield plant at in Karnataka by the end of December this year.
"Currently the land for the proposed plant in Karnataka is being acquired and we have already acquired 80 per cent of the factory land and propose to start work at site by December this year or by the last quarter of the current fiscal," company’s Chief Financial Officer A K Saraogi told PTI here.
The estimated project cost, excluding pre-operative expenses and margin for working capital, is Rs.750 crore, he said, adding that the detailed project report is under finalisation.
"We have already placed orders for long delivery items to ensure commissioning of project as per schedule i.E. In the third quarter of the next fiscal," Saraogi added.
JK Cement produces a total of 3.5Mta and is currently executing a 0.5Mt capacity expansion, which is slated to be completed by June next year.
Anticipating huge demand from the domestic market, Saraogi said the country needs to add cement production capacity by 15Mta to feed the demand.
"India’s cement consumption is around 150Mt and it is growing at the rate of 10 per cent each year. At this rate, India needs to add 15Mt capacity each year to match the demand," he added.
Looking at the demand-supply equation, it appears that prices will remain firm in the medium-term and there is no possibility of reduction in prices in the short term, he added.