Associated Cement Companies Ltd. (ACC) , India’s No. 2 cement maker, said on Friday its capacity would grow to 20.6Mtaq from 16.5Mta after modernisation and consolidation.  The company will merge two subsidiaries, Bargarh Cement Ltd. and Damodhar Cement and Slag Ltd., with itself, a notice to the Bombay Stock Exchange said.  The company also said it expected the industry to grow at 8 per cent in the year to March 31, 2006, and that cement prices would be "stable to improved".  Published under Cement News