Himachal-Jaypee sign Rs.8 bn cement plant deal

Himachal-Jaypee sign Rs.8 bn cement plant deal
02 February 2007

Himachal Pradesh Thursday signed a deal with Jaiprakash Industries Associates Limited (Jaypee) for setting up a Rs.8bn ($181m) cement plant in the state. 
The Broh Shind cement plant in Chamba Valley will have a capacity of two million tonnes per annum and will come into operation within the next five years after clearance from the central environment ministry, says the memorandum of understanding (MoU). 
The MoU was signed here by Prem Kumar, secretary of industries, Himachal Pradesh, and Manoj Gaur, executive chairman of Jaypee. 
"The plant will generate some 1,000 jobs, besides providing 5,000 indirect jobs. Also at least one job will be provided to every displaced family," said Chief Minister Virbhadra Singh. 
"The latest environment pollution control technology will be adopted by the company," said Gaur. 
"Jaypee Associates has now invested over Rs.100 billion in Himachal, mainly in the hydel, education and cement sectors. It was looking for more partnerships with the state government," Gaur said. 
Some three years ago, Jaypee was allotted its first cement plant in the hill state at Baaga in Solan district. 
Two top multinational cement companies among 10 leading Indian companies had bid for the Broh Shind plant. France’s Lafarge and Germany’s Heidelberg were the two global giants in the fray along with Indian players like Ambuja Cement, ACC, the Jaypee group, Dalmia and Grasim. 
Ambuja, ACC, Jaypee and Grasim are already setting up plants at other locations in the state. The proposed 300-hectare site is located in the Broh Shind limestone belt of Chamba valley’s Churah region, around 450 km from here. 
Eleven years ago, the proposed plant was allotted to Larsen and Toubro (L&T), which without signing the lease deal got the allotment transferred in the name of Ultra Tech company. Two years ago the state government cancelled the deal and invited fresh bids. 
Published under Cement News