Hyderabad's Sagar Cements and France based Vicat Group are expected to
achieve financial closure for their Rs 2,500 crore JV cement plant in Gulbarga,
Karnataka soon. Out of the Rs 1,650 crore investment in Phase I, Rs 1,000 crore
will be debt and Rs 650 crore equity.
Sagar and Vicat will have 49:51 per cent stake in the proposed plant which is
to have a capacity of 5.5 million tpa.
The company has completed acquisition of 1,600 acre for Phase I of the
project in Gulbarga, Karnataka, and are awaiting registration approvals from the
state government for another 1,200 acre to be used for Phase II.
The JV partners expect to commence operation of Phase I in September 2011
while Phase II is likely to be operational by 2014.
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