Business Standard: January 14, 2011
Kolkata: Birla Corporation, the flagship company of the M P Birla group, has signed a memorandum of understanding with the Assam Mineral Development Corporation, to set up a one-million tonne greenfield cement plant in Assam.
The joint venture project, generating direct and indirect employment for about 1,200 people, is proposed to be set up at Umrangsu, in the North Cachar Hills district, at a cost of Rs 450 crore.
Birla Corporation Limited will have 87.5 per cent equity in the new joint venture company and the balance 12.5 per cent will be allotted free of cost to the AMDC.
The project will enjoy statutory incentives for setting up industry in the backward region in the North-East. Birla Corporation Limited has been selected for the project through open bidding from among 23 companies.
The Rs 2,400-crore Birla Corporation has cement manufacturing plants at Durgapur (West Bengal), Raebareli (Uttar Pradesh), Satna (Madhya Pradesh) and Chanderia (Rajasthan).
The Company has a production capacity of more than seven million tons of cement currently, which is poised to go up to 9.3 million tons by 2011, and aims at achieving 15 million tons in the near future.
“The North East region of the country had significant potential for growth and development, including hydro power, agriculture, tourism, floriculture etc and hoped that the M P Birla group would be able to contribute substantially to the region’s industrial growth by becoming one of the major producers of quality cement in the region,” Birla Corporation chairman, Harsh Lodha, said.
The MoU was signed by B R Nahar, executive director & chief executive officer of Birla Corporation Limited, and J P Baruah, managing director, AMDC, in the presence of Shri Tarun Gogoi, Chief Minister of Assam, and Harsh Lodha.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.