Patna, Aug. 5: Shree Cement, the manufacturer of Bangur Cement, has decided to set up a plant in Bihar’s Aurangabad district. The cement plant, after commissioning, would produce one million tonnes of cement every year and would attract an investment of Rs 230 crore to Bihar.
Apart from the investment, the proposed cement factory would also provide direct employment to about 250 people and indirect employment to many more.
“We have chosen Bihar for our new plant as the state is growing at a very fast pace and the demand of cement would increase in future, thus, providing a readymade market for our product,” a senior Shree Cement official, who preferred anonymity, told The Telegraph, adding that the company had set the target of starting cement production from the proposed unit from the first half of 2013.
He said the company had kept open its option for selecting a piece of land for the proposed project, which would require 60 acres. “We have seen land of Bihar Industrial Area Development Authority (Biada) at Aurangabad but we may opt for direct purchase of land from locals as well and the final decision in this regard would be taken soon,” said the official.
Citing reasons for selecting Aurangabad for the proposed project, the official said regular supply of raw material was taken into consideration while zeroing in on the location of this plant. “One of our new plants is coming up near Raipur in Chhattisgarh and we have also taken limestone mines on lease there. The raw material for our Bihar plant would come from Chhattisgarh and the location in Aurangabad suits our long-term plans. To begin with, we would bring raw material for our proposed plant in Bihar from Rajasthan.”
Shree Cement, at present, has five factories in place with an installed capacity to manufacture 13 million tonnes of cement every year. While four of the cement plants are located in Rajasthan, one is located at Roorkee in Uttarakhand.
As far as power supply for the proposed factory is concerned, the company has decided to go for captive power generation for this plant. “We would set up a 10MW captive power plant to run the plant. While 7MW would be used, the surplus power would be sold to the Bihar State Electricity Board,” said the Shree Cement official.
Confirming the developments on the front of setting up new cement factory through private investment in Bihar, industry department principal secretary C.K. Mishra said: “All the necessary clearance from the state investment promotion board had been given for setting up the factory and after approval of the state government, the company would be given green light to start ground work.”
Mishra said the proposal of another private sector investment of about Rs 250 crore, too, was in advance stage and work on this project would start after cabinet approval. “The UB group has decided to set up a brewery in Bihar and Biada land near Bihta has been given for this project,” added the principal secretary.
Welcoming the development on the front of private sector investment in the industrial sector in Bihar, member of national council of the Confederation of Indian Industry (CII), Satyajit Singh, said: “Perception about the state has changed and it has worked as a factor as far as interests shown by business houses for making investments in Bihar is concerned.”
The CII member, however, had some bitter things to say as well. “I know several investors who after finalising their investment details backed out as they faced several difficulties on the ground. The state government would have to play a more proactive role if it is really serious about actualisation of investment proposals.”