Sajjan Jindal-led JSW Energy is planning to set up an Rs 1,900-crore cement plant, having a production capacity of 5 million tones by 2011.
The unit, to be located in Karnataka and Andhra Pradesh, will be established by Group’s subsidiary, JSW Cement. The move is aimed to capture the South Indian cement market currently dominated by Dalmia and India Cement.
JSW Group CFO Seshagiri Rao said, “The 5 million tonnes plant will come become operational in the next 18 months.”
Mr. Rao added that the firm has already arranged Rs 1,500 crore debts for the venture while remaining funds will be provided by the group.
JSW, already having steel plants and captive cement plant in Karnataka, will use required raw material including slag and fly ash from its various steel plants while required power for the project will be arranged from various power plants located in both states.
Mr. Rao further informed, “The cement plant will partly come at Nandiyar in Andhra Pradesh. There we are setting up a clinker plant. We are setting up a grinding unit at Vijaynagar.”
The company is also going to commission 300 MW plant at Jaigarh in Maharashtra.