Jaypee may resume Bhutan cement project

Jaypee may resume Bhutan cement project
Published: 08 November 2005

The Jaypee Group has said it is interested to resume construction of the Dangsum Cement Plant in Bhutan with a capacity of 500,000tpa. India had inked an agreement with Bhutan in 1996 for setting up the cement plant but the work was suspended on account of insurgency in the area.
India had granted Rs 300 crore for the plant, to be set up in Ngaglam in southeast Bhutan, and another Rs 100 crore for related infrastructure including roads, railway projects, power supply and storage facilities.
Senior government officials told Business Standard that the Jaypee group had expressed its intention to complete the project as soon as possible.
A meeting of the Dangsum cement project authority has been convened this week to discuss the draft techno-economic feasibility report, prepared by Holtec Consulting Private Ltd, officials said.
The Mumbai-based Association Cement Companies Ltd was selected in 1997 as a joint venture partner with 20 per cent equity stake but the company withdrew its partnership in 1998. The equity stake of the joint venture partner was subsequently increased by the DCP authority to 30 per cent.
India has taken up several mega projects in Bhutan including the 1020 MW Tala project which is expected to be commissioned by June 2006.
Officials said that India was preparing a detailed project report for the Punatsangchu- I mega hydel project and had committed to assist Bhutan in preparing project reports on two major hydro projects, Punatsangchhu- II and Mangdechu.
India and Bhutan have a free trade agreement which India allows transit facilities for Bhutan’s trade with third countries. Both countries have agreed to expand the agreement into an Agreement on Trade, Commerce and Transit.