Shree Cement will make an investment of Rs 4,750 crore on three projects in the states of Rajasthan and West Bengal.
The Board of Directors of the company has approved setting up an integrated cement plant at Gothra village in Nawalgarh tehsil having clinker capacity of 3.8 million tpa and cement capacity of up to 3.5 million tpa.
The project will entail an investment of approximately Rs 3,500 crore and will be financed through internal accruals and debts. The integrated cement plant will be completed by Q4/FY25.
The existing cement capacity of the company is 43.40 million tpa. During FY21, the utilisation rate was 67 percent.
The Board of Directors also approved setting up solar power plants at various locations to meet the captive requirement of the cement plants of the company.
The project will see setting up of solar power plants having capacity up to 106 MWp. The project will see an investment to the tune of around Rs 500 crore and would be financed through internal accruals.
The solar power project would be completed by Q2/FY23. The company has committed to maximise the use of clean energy into its operations.
Setting up the above solar power plants will enhance the proportion of clean energy usage in total energy consumption of the company. The same will reduce the fossil fuel consumption and help in reducing carbon footprint of the company.
Moreover, the Board of Directors of Shree Cement East (SCEPL), a wholly- owned subsidiary of the company, approved the proposal for setting up a clinker grinding unit at Digha and Parbatpur village in Purulia district of West Bengal.
The proposed capacity addition is three million tpa. The project will entail an investment of around Rs 750 crore and the funding will be mainly by way of equity contribution from Shree Cement.
The project is expected to be completed by Q4/FY24. The cement demand supply situation in West Bengal appears quite favourable and thus the investment in cement plant in the state would be a viable proposition.