Tata Group is planning to invest
Rs.140-150 crore to expand its power capacity, from 55 MW to 75 MW, to provide
dedicated supply to its cement plant at Mithapur in Gujarat.
The Mithapur plant, which uses fly ash
generated in production of soda ash to manufacture cement sold in Saurashtra and
Kutch regions of Gujarat, saw its production dip by a quarter to 3.8 lakh tpa on
account of inadequate power and failure of the turbine gearbox in 2007-08. In
the financial year 2006-07, the cement plant, which had a capacity of 4.4 lakh
tpa, produced 5.1 lakh tpa.
The investment in enhancing power
capacity for the cement plant that uses low-cost feedstock, including locally
available limestone and salt, also includes a long-term asset plan that will
help guard against equipment failure.