Cement cos to add 31 m tonnes capacity in second half
Additional cement capacities of nearly 31 million tonnes (across 33 projects) are expected to be commissioned in the second half of this fiscal at an investment of Rs 7,963 crore.
These projections have been made by ProjectsToday, which tracks ongoing investment activities in diverse sectors.
Mr Shashikant Hegde, Chief Executive Officer, ProjectsToday, said the first half had seen investments of Rs 2,080 crore for an additional 10.99 million tonnes per annum (mtpa).
Of the 45 projects scheduled for commissioning this fiscal, 21 have a capacity of over one mtpa. These include those planned by Andhra Cements, Kesoram Industries, JK Lakshmi Cement and UltraTech Cement.
During 2010-11, 42.57 mtpa will be added with an aggregate investment of Rs 13,030 crore. "Of the 36 projects expected to commence operations, eight with capacities ranging from two to four mtpa are being set up by Jaiprakash Associates, ABG Cement, Abhijit Cement, Emami Cements, Chettinad Cements, Penna Cement and Prism Cements," he said.
Other prominent cement projects expected to materialise in FY'11 include those of Calcom Cement, ACC, Shree Cement and Zuari Cements.
"The flooding in Andhra Pradesh and parts of Karnataka may delay some projects as movement of equipment will pose a big challenge. However, companies will make everything possible to stick to the deadline as any delay may lead to jump in project cost," said a cement company official.
AP, biggest gainer
Andhra Pradesh has emerged the biggest gainer in the current boom involving investments in cement-related projects. It may double capacity to 65.18 mtpa by 2012 and, in the process, become India's largest cement producer contributing about 21 per cent of capacity. It is at present the second largest with a total capacity of 32.36 mtpa.
Some of the large projects being commissioned in the State are those of JSW, UltraTech Cement, Orient Paper and Zuari Cements.
Rajasthan is the leader of the pack with a total capacity of 32.99 mtpa with an additional eight mtpa scheduled by 2012, said Mr Hegde. "The new capacity may create a glut up to 2012 but the situation may reverse once private investment in real-estate picks up in Tier II and III cities," he added.
Published in The Hindu Business Line dated 20 October 2009