Ahmedabad, January 13, 2009 : Binani Cement Limited, one of the trusted quality brands of India, has signed a memorandum of understanding (MOU) with Gujarat State Government today to set up a Greenfield cement plant of 2.5 MTPA capacity in Gujarat. The MOU was signed by Mr. Vinod Juneja, Managing Director, Braj Binani Group, on behalf of Binani Cement Ltd and by Mr. Raj Gopal, Commissioner – Mines & Geology on behalf of the Gujarat State Government. Mr. R. H. Joshi, Executive Vice President, Binani Cement Ltd were also present. The capacity of this Greenfield cement plant is 2.5 MTPA. The proposed plant location will be at Lodhva village in Sutrapada District of Junagadh. The land requirement for proposed plant is 188 hectares and for mining 1532 hectares. The plant will manufacture ordinary Portland cement (OPC), Pozzolona Portland cement (PPC) in various grades and the production of OPC to PPC will be ordinarily 50:50. This strategically located plant will be mechanically completed by December 2010 and the commercial production will commence from April 2011.
This association between the Binani Cement Ltd and Gujarat State Government will help in upliftment of social infrastructure, general standard of living of people in Gujarat and development of area and employment generation in the state of Gujarat.
The project is estimated to cost Rs. 825cr. The excise duty and the Sales tax for the plant is estimated to Rs. 66cr and Rs. 78cr respectively, at 100% capacity utilization per annum. Binani would also be required to the pay Rs 17cr per annum as the Royalty & Cess on Limestone to the Gujarat Government.
Limestone, the primary raw material will be outsourced from proposed captive mines located around the villages Lodhava, Singsar, Barevala JTiardi and other adjoining villages, contiguous and within a distance of 3-5 km. The reserves are estimated at about 120-160 MT possible category and would be adequate for the proposed plant for 30 years. Other raw materials like Sandstone, Latertic Iron Ore, Gypsum and Fly Ash are available locally. The power requirement by the plant will be met with a captive power plant of 30 MVA.
The Cement from this Binani plant will be supplied to the markets in Gujarat, Maharashtra and Middle East.